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