Nagaland invested Rs 293 cr in sick PSUs: CAG

Nagaland invested Rs 293 cr in sick PSUs: CAG
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Kohima, February 21: Nagaland Government invested at least Rs 293 crore in various companies and cooperatives without getting any return.
This was revealed in the audit report of the CAG on Nagaland State Finances for the year ended March 31, 2018, report No. 1 of the year 2019, a copy of which was tabled in the recently held State Assembly budget session.
The CAG report stated that as on 31st March 2018, the Government had invested Rs 293.19 cr in Government companies, statutory corporations, joint stock companies and co-operatives.
“The average return on this investment was ‘Nil’ during the four years while there was a return of Rs 4.94 cr during the year 2015-16 indicating non-performing investments,” the report said.
Out of the total Government investment of Rs 293.19 cr at the close of that year, Rs 194.19 cr was invested in five Government companies – Rs 107.78 cr, Distillery Project (part of Nagaland Sugar Mills Ltd.) – Rs 30 Lakh and other undertakings (Nagaland Hotels Ltd.) – Rs 86.11 cr
The remaining amount of Rs 99 cr was invested in two joint stock companies – Rs 43.10 cr and statutory corporations, co-operative bank and co-operative societies, etc., Rs 55.90 cr, it said.
In 2018, the Government made additional investment of Rs 1.44 cr in State Mineral Development Corporation Ltd.
Out of six Government companies in the State, one company viz., Nagaland Sugar Mills Ltd. along with Distillery Project with Rs 7.59 cr investment up to 2001-02 was non-working and its accounts were in arrears for 16 years, the CAG revealed.
The five working companies include Nagaland Industrial Development Corporation Ltd – Rs 8.39 cr, Nagaland Industrial Raw Materials and Supply Corporation Ltd. – Rs 4.05 cr, State Mineral Development Corporations – Rs 85.23 cr, Nagaland Handloom and Handicrafts Development Corporation Ltd. – Rs 2.82 cr and Nagaland Hotels Ltd – Rs 86.11 cr.
The accounts of the five working Government companies were in arrears for periods ranging between one and eight years, it said, and hence the actual financial status of the companies as of March 2018 could not be assessed by audit.
The capital investment and accumulated losses of the working State Public Sector Undertakings as per their latest finalized accounts in 2018 were Rs 27.70 cr and Rs 63.40 crore respectively, the CAG said.
Out of the five working Government companies, accumulated losses of Rs 63.40 cr in all the five working Government companies had exceeded their paid-up capital of Rs 27.70 cr.
The Government in December 2018 accepted the facts pointed out by Audit, the CAG said. (Page News Service)