New Delhi: The Comptroller and Auditor General (CAG) has come down heavily on 97 public sector units (PSU) whose accumulated losses have increased by a whopping 33.98 per cent to Rs 60,996 crore in 2001-02 from Rs 45,527 crore in 1999-2000.

The CAG in its latest report tabled in Parliament said low or zero rates of return on capital invested in these PSUs has stunted the economic growth of the country as a whole.

"Out of the 268 Government Companies, the equity investment in 97 companies has been completely eroded by their accumulated losses and their net worth has become negative to the extent of Rs 47,647 crore," it added.

Due to the negative net worth, the recovery of loans given by the government to these companies has also become doubtful, it said, adding, 65 of these 97 companies have been referred to the BIFR (Board of Industrial and Financial Reconstruction).

Revival packages have been approved for three ailing PSUs while the cases of 22 PSUs out of the remaining 57 are pending for more than 10 years.

"A large group of PSUs, significant both in number and investment are today beset with serious problems like slow growth, low productivity, inefficient management, poor project planning and unmanageable time and cost overruns in project implementation," it said.

The CAG also pulled up the government-run companies for inadequate emphasis on research and development, inadequate or unfocussed marketing and shortage of working capital.

PTI