Raipur, The Comptroller and Auditor General (CAG) of India has raised serious concerns over the financial health and corporate governance of State Public Sector Enterprises (PSUs) in Chhattisgarh for the financial year ended March 2023, while highlighting significant delays and fund underutilisation in the Smart Cities Mission.
The Audit Report on State PSUs for the period 2022-23 was presented to the Chhattisgarh Legislative Assembly on Tuesday. The report, tabled under Article 151 of the Constitution, reveals that while 10 PSUs earned profits of ₹879.22 crore, seven enterprises recorded losses totalling ₹1,143.10 crore during the period.
Five major PSUs, including Chhattisgarh State Power Distribution Company Limited and Chhattisgarh State Civil Supplies Corporation Limited, have carried accumulated losses of ₹10,252.86 crore. The audit also flagged inaccuracies in financial statements that impacted reported profitability by ₹1,194.79 crore.
Regarding governance, 16 PSUs failed to hold the mandatory four board meetings annually. Only one out of 12 enterprises had the required number of independent directors, and audit committees existed in only two PSUs. Furthermore, 25 PSUs have accumulated arrears of 47 accounts, with delays extending up to six years as of September 2023.
In its performance audit of the Smart Cities Mission in Raipur, Bilaspur, and Nava Raipur, the CAG noted that progress remains slow. Against an approved project cost of ₹9,627.70 crore, only 476 work orders worth ₹2,644.44 crore—roughly 27 per cent—were issued between 2016-17 and 2022-23.
As of March 2023, only 62 per cent of these works were completed. The CAG identified irregularities such as awarding works to ineligible bidders and a lack of competitive tendering. In Nava Raipur, restrictive tender conditions resulted in 84 per cent of works being awarded to a single contractor.
The report also highlighted that oversight mechanisms were ineffective, with the State Level High Powered Steering Committee failing to conduct review meetings after project approvals. Additionally, none of the Special Purpose Vehicles (SPVs) had appointed full-time Chief Executive Officers as required by mission guidelines.
In a separate compliance audit, the CAG reported that Chhattisgarh Rural Housing Corporation Limited lost interest income of ₹5.32 crore. This occurred because the body parked ₹55 crore in a savings bank account without an auto-sweep facility.
The CAG has recommended an urgent review of loss-making and inactive PSUs and strict enforcement of timelines for account finalisation. It also called for the appointment of full-time leadership in Smart City SPVs to protect public investments and improve service delivery.