SHILLONG, May 1, 2018: The Meghalaya government, which had invested Rs 2,274.53 crore in eight government companies, has incurred a loss of Rs 287.76 crore.
A report of the Comptroller and Auditor General of India on state finances for the 2016-17 fiscal, which was tabled in the Assembly recently, said the state government, as on March 31, 2017, had invested Rs 2,471.63 crore, of which Rs 91.26 crore was invested in two statutory corporations, Rs 2,274.58 crore in nine government companies and Rs 105.79 crore in 1,444 co-operative banks and societies.
Of the two statutory corporations, the bulk of investment was made in Meghalaya Transport Corporation Limited (Rs 89.13 crore) between 1986 and 2017. The MTCL accumulated a loss of Rs 99.62 crore till 2013-14.
Of the Rs 2,274.58 crore invested in government companies, Rs 2,004.41 crore was invested in Meghalaya Energy Corporation Limited alone between 2012-13 and 2015-16. It accumulated a loss of Rs 99.58 crore.
The government also invested Rs 162.79 crore in Mawmluh Cherra Cements Limited between 1958 and 2015, which accumulated a loss of Rs 122.65 crore upto 2015-2016.
The report revealed that Rs 2,274.53 crore was invested in eight loss-making companies, which had accumulated a loss of Rs 287.76 crore.
Of the Rs 105.79 crore invested in co-operative banks/societies, Rs 25.09 crore was invested in 1,091 loss-making co-operative banks/societies, which accumulated a loss of Rs 7.48 crore upto March 31, 2010.
The working results of 126 co-operative banks/societies were not intimated upto October 2017, the report says.
The average return on investment in statutory corporations, government companies and co-operative banks/societies was less than one per cent during 2012-2017. However, the government paid interest on its borrowings at an average rate of 6.22 per cent to 6.70 per cent during the period.
The CAG report says as many as 70 projects were to be completed on or before March 2017 at an estimated cost of Rs 912.54 crore but they remained incomplete after incurring an expenditure of Rs 734.29 crore. The incomplete projects include 48 road and bridge projects of the state PWD at Rs 716.84 crore, 10 projects of the PHE at Rs 140.79 crore and 12 projects of the health and family welfare department at Rs 54.91 crore.
The report says five projects – two of the PWD, two of the health department and one of the PHE – were revised in 2016-2017.
The cost of PHE project Greater Rymbai Water Supply Scheme was revised by 57.49 per cent from Rs 17.43 crore to Rs 27.45 crore.
However, the actual expenditure on the project till March 2017 was Rs 19.62 crore, the report said.
The CAG suggested that effective steps should be taken to complete the projects without further delay to avoid cost overrun due to time overrun.
Source, Image Courtesy: The Telegraph