J&K Pumped Rs 83 Cr Into Two Companies, Corporation: CAG


(MENAFN- Kashmir Observer)

Srinagar- The Jammu and Kashmir Government's commitment to rejuvenate businesses in 'Naya Kashmir' through multiple efforts has proved a reality as the Union Territory administration invested Rs 83.27 crore in two companies and one corporation and had total investment of Rs 162.39 crore as on 31 March 2021.

These details were revealed by the Comptroller and Auditor General (CAG) report that was tabled in the month of August and had pointed out numerous factors in the disbursement of Union Territory Finances.

“Erstwhile State government had cumulative investment of Rs 4,617.16 crore in 38 Companies (Rs 4,148.83 crore), three Statutory Corporations (Rs 374.34 crore), eight Co-operative Institutions/ Local Bodies (Rs 47.83 crore), two Rural Banks (Rs 45.82 crore) and two Joint Stock Companies (Rs 0.34 crore) ending 30 October 2019 which had not been divided between Union Territory of Jammu & Kashmir and Union Territory of Ladakh,” it said.

The report said that Rs 32.50 crore were granted to J&K State Road Transport Corporation Limited which already had outstanding loans of Rs 406.73 crore.

“During the year ended 31 March 2021, the Government of Union Territory of Jammu and Kashmir disbursed Loans and Advances of Rs 61.64 crore and recovered loans and advances amounting to Rs 1.93 crore. Out of total loans of Rs 61.64 crore disbursed during 2020-21, a loan of Rs 32.50 crore was granted to J&K State Road Transport Corporation Limited which already had outstanding loans of Rs 406.73 crore,” reads the data.

These facts were emerging from CAG's 2nd report of the year 2022 for J&K titled, 'Audit Report of the Comptroller and Auditor General of India on the Union Territory Finances for the year ended 31 March 2021, Government of Union Territory of Jammu and Kashmir'.

The report also found that during 2020-21, the balance under Reserve Funds of UT Jammu and Kashmir was Rs 771.13 crore.“There was also a cumulative aggregate balance in Reserve Funds at the end of 30 October 2019 amounting to Rs 2,806 crore which was yet to be bifurcated between the two Union Territories till 31 March 2021,” it read.

The report said that an amount of Rs 6,714.34 crore was incurred under 53 schemes/ Sub Heads in 16 Grants without Budgetary Provisions which needs to be regularized. However, the report also revealed that“entire budget provision of Rs 18,134.91 crore under 25 Grants involving 139 number of schemes remained unutilised during the year resulting in denial of intended benefits to the general public”.

It also noted that there were huge savings of Rs 100 crore and above by the departments under Capital Section in 25 grants amounting to Rs 31,927.59 crore.“Out of 35 grants, in 34 grants the utilization ranged between 20 per cent and 83 per cent. In the remaining one grant there was over utilization of 11 per cent resulting in excess over provisions during 2020-21,” CAG noted.

The report also said that as on 31 March 2021, of the total equity capital of Rs 5,073.32 crore in Power Sector PSUs, Rs 2,593.54 crore (51.12 per cent) was contributed by the GoJ&K. Further, the total equity investment in 36 PSUs of sectors other than Power Sector was Rs 969.10 crore. The government had also advance loans of Rs1437.72 crore to PSUs functioning in other than the power sector.

“Budgetary assistance of Rs 3,151.70 crore was received by PSUs from the GoJ&K during 2020-21,” CAG added.

The report further said that the market value of shares of J&K Bank Limited was Rs 1,901.35 crore as on 31 March 2021 as compared to Rs 881.83 crore as on 31 March 2020.

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Kashmir Observer

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