‘J&K PSUs incur `155 crore losses in 3 yrs’

‘J&K PSUs incur `155 crore losses in 3 yrs’

SRINAGAR: Proving a white elephant for the state, Jammu and Kashmir’s public sector undertakings (PSU) have incurred around Rs 155 crore losses in last three years, with alone State Road Transport Corporation’s losses accumulating to Rs 66.97 crore.
The details were revealed by the Auditor and Comptroller General of India (CAG) in its annual recently released audit report of the PSU in J&K.
The auditor said that 12 PSUs incurred losses of Rs 154.37 crore and the heavy losses were incurred by Jammu and Kashmir State Road Transport Corporation (Rs 66.97 crore), J&K Industries Limited (Rs 46.83 crore), J&K Horticulture Produce Marketing and Processing Corporation Limited (Rs 10.62 crore) and Jammu and Kashmir Minerals Limited (Rs 10.36 crore).
The CAG said that not recoverable, controllable or avoidable expenditure, in fructuous investment and blockage of funds from the audit reports for the last three years is Rs 1264.41 crore.
During the period of 2010-11the blockage of funds including other things is, it said, Rs 644.31 crore, Rs 372.90 crore in 2011-12 and in 2012-13 Rs 247.20 crore.
It also said out of 23 working PSUs for which accounts for latest years were received up to September 30, 2013 eight PSUs earned profit of Rs 1388.55 crore and two PSUs have not prepared profit and losses account and one PSU had not submitted its accounts since 1996-97 when its audit was entrusted to the CAG.
Lambasting the state government for not formulating dividend policy under which all PSUs were required to pay a minimum return on the paid up share capital contributed by the state government, the CAG said: “As per the latest finalized accounts, eight PSUs earned an aggregate profile of Rs 1388.55 crore and only one PSU declared a dividend of Rs 242.39 crore.”
Recently the state government in its recently concluded Budget Session in Jammu admitted that more than Rs 270 crore losses were incurred in the public sector bodies during the past three years in the state.
Minister for Industries and Commerce, Sajjad Ahmad Kitchloo had informed the Legislative Assembly that the highest loss was incurred in JK Minerals Ltd with 247 crore followed by Jammu and Kashmir Handloom Development Corporation which saw a loss of Rs 20 crore.
The minister had also said that Jammu and Kashmir Handicrafts (S&E) Corporation incurred Rs seven crore from 2010 to 2013 with JKI suffered around Rs 43.36 lakh and J&K cements Rs 57 lakh.
The government reply had also said that there are nearly 360 sick industrial units in Kashmir as against 89 in Jammu whereas 9663 units are functional in Kashmir and 11850 in Jammu.
The minister had said that 3518 industrial units in the state were functional prior the eruption of militancy in 1989.