Audit Reports

Overview

As on 31 March 2017, the State had 74 Public Sector Undertakings (PSUs) (Working: 68 and Non-working: 6) with an Investment of ` 1,53,870.74 crore. Out of 68 working PSUs, 39 earned profit of ` 931.08 crore and 25 PSUs incurred loss of ` 9,366.31 crore.

PA on Operational performance of gas turbine power stations of TANGEDCO revealed deficiencies including (i) Lower average Plant Load Factor (PLF) ranging from 40.88 to 50.46 per cent against the norm of 80 per cent in three out of four GTPS, viz., KGTPS, TGTPS and VGTPS-II  resulting in loss of  ` 1,203.46 crore.  (ii) Forced outages in GTPS led to loss of generation valued at ` 749.56 crore  and (iii) Non-registration of the GTPS for Clean Development Mechanism (CDM) benefits, led to TANGEDCO losing a potential revenue of ` 39.12 crore.

PA on Information Technology Audit of Drug Distribution Management System in Tamil Nadu Medical Services Corporation revealed deficiencies including  (i) Procurement of 590 life expired drugs valuing ` 16.13 crore during 2012-17, (ii) deficient system in calculation of  penalty for non/short supply of drugs  led to non-collection of penalty of ` 40.90 crore during 2012-17 and (iii) Due to deficiencies in the application software, 1,115 purchase orders were placed between July 2013 and March 2017 on firms black listed by purchase department.

The Report also contained 14 Compliance Audit observations, which inter alia, include para on Import of coal where TANGEDCO had accepted lower grade coal as revealed by Customs Test Report.  This lapse led to excess payment of ` 813.68 crore and non-adoption of Variable price method for coal import as was done by other PSUs (including TNPL) resulted in additional expenditure of ` 746.13 crore.

Further, paras on the Companies include unwarranted diversion of vessels earmarked for Tuticorin sector to Chennai sector by Poompuhar Shipping Corporation Limited resulting in extra expenditure of ` 19.26 crore. Deficiencies in the contract management by Tamil Nadu Road Infrastructure Development Corporation in formation of four/six lane in the Oragadam Industrial Corridor Project connecting
Singaperumalkoil – Sriperumpudur for a length of 24 KMs and between
Vandalur – Walajabad Road for a length of 33.40 KMs resulting in avoidable cost escalation of ` 82.89 crore.

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• Report No.5 of 2017 - Public Sector Undertakings Government of Tamil Nadu

• Index
• Preface
• Overview
• Chapter 1 Functioning of State Public Sector Undertakings
• Chapter 2 Performance Audit relating to Government Company
• Chapter 3 Compliance Audit Observations
• Annexures
• Glossary of Abbreviations