An audit of public sector undertakings by the comptroller and auditor general has unveiled that 64 of the 413 PSUs cost the government Rs 1,846.58 crore in the 2007-2008 fiscal year.

Fiscal shortcomings were discovered in petroleum and natural gas, steel, coal, defense, civil aviation, heavy industries and power sectors, highlighted by Bharat Heavy Electrical Limited, NTPC, Indian Oil Corporation and the Steel Authority of India.

Among those financial deficiencies were Rs 916 crore in payments to employees; Rs 497 crore in avoidable or excess expenditures; Rs 237 crore loss in revenue due to non-compliance, Rs 321 in contractual obligations, Rs 66 crore in excess expenditures and Rs 92 crore in idle investments.

Among the greatest encumbrances was a Rs 938 crore profit overstatement made by NTPC, according to the CAG audit report, as pointed out by the Central Electricity Regulatory Commission.

NTPC has refuted the claim, stating that revenue deemed to be prematurely added to the company’s books is in fact justly attributed “as it is reasonable to expect ultimate collection.” In the meantime, NTPC’s records. were edited to abide by the audit’s findings. Concurrently, NTPC understated their liabilities by nearly Rs. 30 crore

The decision of Indian Oil Corporation Limited in March 2006 and September 2006 for to retroactively enact a productivity incentive scheme in conflict with the rules of PSU financing back to 2002-2003 resulted in an avoidable expenditure of Rs 182.53 crore.

On the civil aviation front, Air India’s massive restructuring and turnaround exercise has drawn the attention of the CAG, which may result in an independent audit of the ailing national carrier.

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