JKSRTCL advanced Rs 32 cr loan despite outstanding of Rs 406 cr

Navneet Dubey. Updated: 8/10/2022 9:49:42 AM Front Page

Jammu: The Comptroller and Auditor General of India (CAG) has pointed out that the government of Jammu and Kashmir had given 32.50 crore loan to the J&K State Road Transport Corporation Limited which already had outstanding loans of `406.73 crore ending March 31, 2020. CAG has observed that if the Union Territory government keeps on making investments in loss making government companies, whose net worth is completely eroded, there are no chances of return on investment. Requisite steps have to be taken to infuse transparency in such financial operations.
It has further pointed out that if recoveries of loans and advances are not forthcoming from loss making public sector undertakings(PSUs). No assessment about potential recoverability of these loans has been made in the FRBM Statements.
As per CAG report the J&K government during the year 2020-21 has only recovered loans and advances amounting to only`1.93 crore after disbursed Loans and Advances of `61.64 crore.
The J&KSRTC had outstanding loans of `406.73 crore ending 31 March 2020 (`383.73 crore received from erstwhile State and `23 crore from UT of J&K).
The Government of UT of Jammu and Kashmir had total outstanding loans and advances of `95.51 crore ending March 31, 2021. In addition, there were Loans and Advances of 1,740.44 crore made by the Government of erstwhile State which were outstanding ending 30 October 2019 and were yet to be divided between Union Territory of Jammu and Kashmir and Union Territory of Ladakh.
As per CAG report during 2020-21, UT of government booked `99.25 crore as investment. However, against the booked amount, PSUs concerned had shown an investment of `83.27 crore, thereby resulting in variation of `15.98 crore.
Investment of `83.27 crore was made in three entities which had incurred loss as per their last audited accounts. Out of `83.27 crore, an amount of `81.27 crore has been invested in J&K State Road Transport Corporation, which had reported loss of `92.90 crore as per its last audited accounts for the year 2013-14.
J&K had total investment of `162.39 crore as on March 31, 2021 in one corporation (`138.78 crore), one rural bank (`2.35 crore), three companies (`17.91 crore) and investment of (`3.35crore) communicated by Registrar Co-operative Societies, J&K Government. In addition to above, erstwhile J&K State Government had cumulative investment of `4,617.16 crore in 38 Companies (`4,148.83 crore), three Statutory Corporations (`374.34 crore), eight Co-operative Institutions/ Local Bodies
(`47.83 crore), two Rural Banks (`45.82 crore) and two Joint Stock Companies (`0.34 crore) ending 30 October 2019 which had not been divided between Union Territory of Jammu and Kashmir and Union Territory of Ladakh. No dividend was received and credited to Government accounts during the year.
Updated On 8/10/2022 10:18:13 AM

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