Rs 1.58 cr avoidable interest payments made
BILAL HUSSAIN
The Comptroller and Auditor General (CAG) of India has flaked the industries and commerce department in the recent report ended March 2009 for loss of funds on account of avoidable interest payments.
The CAG report said, “Lack of clear and timely decision on land compensation resulted in avoidable expenditure of Rs 1.58 crore as interest payment.”
For acquisition of about 1000 kanals of land required for establishment of Industrial Estate at Ompora, Budgam the collector, land acquisition, Budgam in his tentative award in October, 1992 had fixed the rates of compensation to land owners for two types of land, viz. Baghi Khushki and Baghi Maidani at Rs 75,000 and Rs 65,000 per kanal respectively and referred the rates in July 1996 to the government for approval.
While approving the rates in April 1997, the government scaled down the land compensation rates to Rs 40,000 and Rs 35,000 per kanal for Baghi Khushki and Baghi Maidani land, respectively, without any recorded justification, the report makes a mention.
The payments to the land owners were made in April 1997 in accordance with the lower rates determined by the government. The land owners, not satisfied with the rates fixed by the Government, received the payment under protest and approached the court of law.
While defending the case in the court, the department was not able to give plausible reasons for scaling down the rates. The District Judge, Budgam accordingly decided November 20, 2000 that the petitioners were entitled to compensation at the rates of Rs 75,000 and Rs 65,000 for Baghi Khushki and Baghi Maidani, respectively, with interest at the rate of six per cent for the enhanced amount from November 20, 2000 to September 2008.
The industries department approached the High court in May 2001 which upheld June 2008, the judgment given by the lower court. On its direction, the department paid land compensation of Rs 3.85 crore at enhanced rates and an interest of Rs 1.58 crore thereon in terms of the court judgment.
The matter was referred to the government/department in July 2009. The Director, industries and commerce stated August 2009 that all the levels of the revenue department from collector to the administrative department were responsible for the extra payment to the landowners, which had to be paid by the industries and commerce department for no fault on its part. “The government endorsed the reply of the Director,” the report said.
Showing posts with label Audit. Show all posts
Showing posts with label Audit. Show all posts
Investment in power sector 42.33 pc during 2008-09
Outlay in 23 PSU crosses Rs 4846.47 cr
BILAL HUSSAIN
The investment, capital and long-term loans, in twenty three Public Sector Undertakings (PSU) has reached Rs 4846.47 crore, as on March 31, 2009, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
The total investment in State PSUs, 99.93 per cent was in working PSUs and the remaining 0.07 per cent in non-working PSUs. This total investment consisted of 8.47 per cent towards capital and 91.53 per cent in long-term loans. The investment has grown by 61.87 per cent from Rs 2993.98 crore in 2004-05 to Rs 4846.47 crore in 2008-09.
Though the highest investment during 2008-09 was in power sector 42.33 per cent, the thrust of PSU investment was mainly in finance sector during the five years which has seen its percentage share rising from 6.74 per cent in 2004-05 to 26.58 per cent in 2008-09, the report mentions.
According to the experts here the rise in investments in the power sector is a good sign as the sector need more funds.
The budgetary outgo of the state government towards equity contribution, loans, grants and subsidy was all time high in preceding five years during 2005-06 at Rs 362.03 crore.
The downward trend of budgetary outgo can be seen after 2005-06, with marginal increase during 2008-09 when the budgetary outgo stood at Rs 74.99 crore, the report said.
At the end of March 31, 2009 guarantees amounting to Rs 2194.72 crore were outstanding. More than 93 per cent of these guarantees outstanding were on the loans raised by Jammu and Kashmir Power Development Corporation Limited from various Financial Institutions. However, the State Government has not charged any guarantee commission or fee from the PSUs during 2008-09.
Mention to be made the state PSUs earned a profit of Rs 232.25 crore in the aggregate as per their latest finalised accounts as of September 2009, the reports reveals. Experts here believe that the profit earned by the PSUs isn’t decent enough. According to them there are few PSUs only that earn good profits else rest are not earning much,” he said.
“They had employed 0.13 lakh employees as of March 31, 2009. The state PSUs don’t include two prominent Departmental Undertakings (DUs), which carry out commercial operations but are a part of government departments,” the report make a mention.
Of 23 PSUs in the state only one company is listed on the stock exchanges, Jammu and Kashmir Bank.
BILAL HUSSAIN
The investment, capital and long-term loans, in twenty three Public Sector Undertakings (PSU) has reached Rs 4846.47 crore, as on March 31, 2009, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
The total investment in State PSUs, 99.93 per cent was in working PSUs and the remaining 0.07 per cent in non-working PSUs. This total investment consisted of 8.47 per cent towards capital and 91.53 per cent in long-term loans. The investment has grown by 61.87 per cent from Rs 2993.98 crore in 2004-05 to Rs 4846.47 crore in 2008-09.
Though the highest investment during 2008-09 was in power sector 42.33 per cent, the thrust of PSU investment was mainly in finance sector during the five years which has seen its percentage share rising from 6.74 per cent in 2004-05 to 26.58 per cent in 2008-09, the report mentions.
According to the experts here the rise in investments in the power sector is a good sign as the sector need more funds.
The budgetary outgo of the state government towards equity contribution, loans, grants and subsidy was all time high in preceding five years during 2005-06 at Rs 362.03 crore.
The downward trend of budgetary outgo can be seen after 2005-06, with marginal increase during 2008-09 when the budgetary outgo stood at Rs 74.99 crore, the report said.
At the end of March 31, 2009 guarantees amounting to Rs 2194.72 crore were outstanding. More than 93 per cent of these guarantees outstanding were on the loans raised by Jammu and Kashmir Power Development Corporation Limited from various Financial Institutions. However, the State Government has not charged any guarantee commission or fee from the PSUs during 2008-09.
Mention to be made the state PSUs earned a profit of Rs 232.25 crore in the aggregate as per their latest finalised accounts as of September 2009, the reports reveals. Experts here believe that the profit earned by the PSUs isn’t decent enough. According to them there are few PSUs only that earn good profits else rest are not earning much,” he said.
“They had employed 0.13 lakh employees as of March 31, 2009. The state PSUs don’t include two prominent Departmental Undertakings (DUs), which carry out commercial operations but are a part of government departments,” the report make a mention.
Of 23 PSUs in the state only one company is listed on the stock exchanges, Jammu and Kashmir Bank.
Bridge upshots unused fund of Rs 27.29 lakh
Change in specification led to idle investments
BILAL HUSSAIN
While criticizing various state departments involved in the diverse civil works in Jammu and Kashmir, the Comptroller and Auditor General (CAG) of India report ended March 2009 said, “The incorrect assessment of the department regarding type of the bridge to be constructed resulted in idle investment of Rs 27.29 lakh.”
For providing connectivity to eight19 villages, the Executive Engineer (EE), R&B Division, Udhampur had proposed (August 1997) construction of a 48 metre span foot suspension bridge over river Ujh at Sai Merry at an estimated cost of Rs 32.66 lakh.
Without obtaining administrative approval and technical sanction, the EE took up (October 1997) construction of left side abutment and anchor block of the bridge and got it completed through a contractor at a cost of Rs 11.99 lakh, the report said.
“It was seen in audit (December 2008) that after the construction of the abutment and anchor block had been completed, the specification of the bridge was changed (November 2002) from that of foot suspension to a motorable one due to demands of the local population. The change in specifications, interalia, required construction of the right side abutments as per the revised drawings and strengthening of the abutment already constructed, which necessitated revision of the project cost to Rs 68.69 lakh,” the report mentions.
These works were got completed (July 2006) through another agency at a cost of Rs 15.30 lakh which included Rs 2.25 lakh released in 2006-07 and 2008-09 which had been utilized for clearance of the past liability. The work, suspended in July 2006, is yet (May 2009) to be resumed due to non-release of funds in the subsequent years, the report says.
The EE stated (December 2008, May 2009) that the work is proposed to be taken up under NABARD and would be completed after release of funds from the agency. The reply should be viewed in the light of the fact that the EE did not ascertain the requirement of the population of the area being benefited under the scheme before commencing the work and as a result the specification of the bridge had to be changed.
Thus, wrong assessment of the Department regarding the type of bridge to be constructed necessitating change in specification of the foot suspension bridge to a motorable one has resulted in idle investment of Rs 27.29 lakh besides, the inhabitants of the targeted villages being deprived of the envisaged benefits. The matter was referred to Government/Department in September 2009; reply had not been received (October 2009).
BILAL HUSSAIN
While criticizing various state departments involved in the diverse civil works in Jammu and Kashmir, the Comptroller and Auditor General (CAG) of India report ended March 2009 said, “The incorrect assessment of the department regarding type of the bridge to be constructed resulted in idle investment of Rs 27.29 lakh.”
For providing connectivity to eight19 villages, the Executive Engineer (EE), R&B Division, Udhampur had proposed (August 1997) construction of a 48 metre span foot suspension bridge over river Ujh at Sai Merry at an estimated cost of Rs 32.66 lakh.
Without obtaining administrative approval and technical sanction, the EE took up (October 1997) construction of left side abutment and anchor block of the bridge and got it completed through a contractor at a cost of Rs 11.99 lakh, the report said.
“It was seen in audit (December 2008) that after the construction of the abutment and anchor block had been completed, the specification of the bridge was changed (November 2002) from that of foot suspension to a motorable one due to demands of the local population. The change in specifications, interalia, required construction of the right side abutments as per the revised drawings and strengthening of the abutment already constructed, which necessitated revision of the project cost to Rs 68.69 lakh,” the report mentions.
These works were got completed (July 2006) through another agency at a cost of Rs 15.30 lakh which included Rs 2.25 lakh released in 2006-07 and 2008-09 which had been utilized for clearance of the past liability. The work, suspended in July 2006, is yet (May 2009) to be resumed due to non-release of funds in the subsequent years, the report says.
The EE stated (December 2008, May 2009) that the work is proposed to be taken up under NABARD and would be completed after release of funds from the agency. The reply should be viewed in the light of the fact that the EE did not ascertain the requirement of the population of the area being benefited under the scheme before commencing the work and as a result the specification of the bridge had to be changed.
Thus, wrong assessment of the Department regarding the type of bridge to be constructed necessitating change in specification of the foot suspension bridge to a motorable one has resulted in idle investment of Rs 27.29 lakh besides, the inhabitants of the targeted villages being deprived of the envisaged benefits. The matter was referred to Government/Department in September 2009; reply had not been received (October 2009).
J&K earn Rs 232.25 cr profit
PSUs register Rs 3206.88 cr turnover for 2008-09
BILAL HUSSAIN
The state government managed a profit of Rs 232.25 crore in aggregate as per their latest finalised accounts as of September 2009 through the state Public Sector Undertakings (PSUs).
The PSUs consist of Jammu and Kashmir government companies and statutory corporations. The state PSUs registered a turnover of Rs 3206.88 crore for 2008-09 as per their latest finalized accounts as of September 2009. This turnover was equal to 9.21 per cent of state Gross Domestic Product (GDP) for 2008-09. Major activities of the PSUs are concentrated in power and finance sectors, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
The State PSUs earned a profit of Rs 232.25 crore in the aggregate as per their latest finalised accounts as of September 2009, the reports reveals. Experts here believe that the profit earned by the PSUs isn’t decent enough. According to them there are few PSUs only that earn good profits else rest are not earning much,” he said.
“They had employed 0.13 lakh employees as of March 31, 2009. The state PSUs don’t include two prominent Departmental Undertakings (DUs), which carry out commercial operations but are a part of government departments,” the report make a mention.
As on March 31, 2009, there were 23 PSUs. Of these, one company is listed on the stock exchanges, Jammu and Kashmir Bank.
During the year 2008-09, no PSU was established whereas three were under liquidation.
Audit of government companies is governed by Section 619 of the Companies Act, 1956. According to Section 617, a government company is one in which not less than 51 per cent of the paid up capital is held by government. A government company includes a subsidiary of a government company.
The PSUs are established to carry out activities of commercial nature while keeping in view the welfare of people. In Jammu and Kashmir, the PSUs occupy a moderate place in the state economy, CAG report mentions.
BILAL HUSSAIN
The state government managed a profit of Rs 232.25 crore in aggregate as per their latest finalised accounts as of September 2009 through the state Public Sector Undertakings (PSUs).
The PSUs consist of Jammu and Kashmir government companies and statutory corporations. The state PSUs registered a turnover of Rs 3206.88 crore for 2008-09 as per their latest finalized accounts as of September 2009. This turnover was equal to 9.21 per cent of state Gross Domestic Product (GDP) for 2008-09. Major activities of the PSUs are concentrated in power and finance sectors, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
The State PSUs earned a profit of Rs 232.25 crore in the aggregate as per their latest finalised accounts as of September 2009, the reports reveals. Experts here believe that the profit earned by the PSUs isn’t decent enough. According to them there are few PSUs only that earn good profits else rest are not earning much,” he said.
“They had employed 0.13 lakh employees as of March 31, 2009. The state PSUs don’t include two prominent Departmental Undertakings (DUs), which carry out commercial operations but are a part of government departments,” the report make a mention.
As on March 31, 2009, there were 23 PSUs. Of these, one company is listed on the stock exchanges, Jammu and Kashmir Bank.
During the year 2008-09, no PSU was established whereas three were under liquidation.
Audit of government companies is governed by Section 619 of the Companies Act, 1956. According to Section 617, a government company is one in which not less than 51 per cent of the paid up capital is held by government. A government company includes a subsidiary of a government company.
The PSUs are established to carry out activities of commercial nature while keeping in view the welfare of people. In Jammu and Kashmir, the PSUs occupy a moderate place in the state economy, CAG report mentions.
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