Bhubaneswar: Seven state-run companies and corporations in Odisha posted a combined loss of ₹794.98 crore in the financial year 2022–23, according to a report by the Comptroller and Auditor General of India (CAG) tabled in the Assembly on Tuesday.
The audit assessed the financial performance of 29 State Public Sector Enterprises (SPSEs), of which seven entities reported losses during the fiscal. The total loss marks a significant rise from ₹453.11 crore recorded by the same set of entities in 2021–22.
The bulk of the losses was attributed to two enterprises. GRIDCO Limited alone accounted for ₹778.18 crore, while Odisha State Road Transport Corporation reported a loss of ₹10.55 crore. Together, they contributed ₹788.73 crore to the total losses.
Other loss-making entities included Odisha Rail Infrastructure Development Limited, Odisha Tourism Development Corporation Limited, Kalinga Studios Limited, Odisha Sports Development and Promotion Company Limited and GEDCOL SAIL Power Corporation Limited.
The CAG report also highlighted multiple operational and financial irregularities in the Odisha Mining Corporation (OMC). As of March 2025, OMC held 36 mining leases, of which only 18 were operational, while the remaining had remained non-functional for several years.
The audit noted that OMC incurred a penalty of ₹3,761.88 crore for excess production of 29.47 million metric tonnes between 2017 and 2022 beyond limits set under environmental and forest clearances. Additionally, the corporation paid ₹602.27 crore for producing 5.56 million metric tonnes in excess of permitted quantities under ‘consent to operate’ norms during 2018–23.
Concerns were also raised over financial management practices. The PSU extended inter-corporate loans worth ₹3,211.71 crore without a defined policy framework, exposing it to financial risks. Of this, ₹947.80 crore has already defaulted, primarily by IDCOL.
On the capital expenditure front, OMC had undertaken six projects worth ₹5,495.90 crore aimed at improving production capacity and quality. However, only two projects had been completed, with the rest still under execution.
The auditor further pointed to deficiencies in contract management related to ore extraction, uneconomical disposal practices, and improper stacking of minerals.
Recommending corrective measures, the CAG urged the state government to strengthen oversight of OMC’s mining operations, ensure timely surrender of unviable leases, and prevent unnecessary extensions that could lead to avoidable expenditure.
