Govt invests Rs 2,427 Cr in 8 loss making companies

Syllad | The Rising MeghalayaSeptember 15, 2019

SHILLONG: The state government has invested Rs 2,427.10 crore of Rs 2,628.56 crore in eight loss making companies.

“Out of this, Rs 2,427.05 crore was invested in eight loss making companies, which had accumulated loss of Rs 1,746.14 crore,” the CAG report said.

It said Rs 2,156.93 crore was invested in Meghalaya Energy Corporation Limited (MeECL) during 2012-13 to 2017-18, which had accumulated loss of Rs 1,510.82 crore.

Rs 162.79 crore was invested in Mawmluh Cherra Cements Limited during 1958-2015, which had accumulated loss of Rs 155.06 crore up to 2016-17.

Of the two statutory corporations, bulk of investment of Rs 90.63 crore was made in the Meghalaya Transport Corporation Limited during 1986-2018, which had accumulated loss of Rs 99.62 crore till 2013-14.

Further, Rs 57.97 crore out of Rs 108.69 crore was invested in 1,141 loss making co-operative banks/societies, which had accumulated losses of Rs 7.48 up to March 31, 2010.

Working results of 126 co-operative banks/societies had not been intimated till October, last year.

“Non-preparation of working results are a cause of serious concern as it may indicative of erosion of working capital or serious fraud,” the CAG said.

It said the average return on investment in statutory corporations, government companies and co-operative banks/societies was less than one per cent during 2013-2018.

However, the government paid interest on its borrowings at an average rate of interest of 6.22 per cent to 6.70 per cent during 2013-18.

The CAG however recommended the government to review the performance of the units.