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| Public purse petrified as Govt sanctions hundreds of crores loan with no recovery plan | | Comedy of errors! | | Early Times Report
Jammu, Jan 7: Loans worth hundreds of crores have been sanctioned by the Jammu and Kashmir government without ensuring the recovery of the same, leaving the public purse perturbed and debt-ridden to the core.
Official documents pertaining to the matter reveal that against the outstanding amount of Rs 910.16 crore, Rs 1.25 crore were only recovered. The total outstanding loans registered an increasing trend from Rs 1,493.94 crore to Rs 1,725.77 crore during the period 2014-15 to 2018-19. Out of Rs 1,725.77 crore, major portion of loans amounting to Rs 910.16 crore were outstanding in March 2019 against seven entities. These include (1) Municipalities Rs 5.17 crore (Nil recovery), (2) Development Authority, Srinagar – Rs 1.91 crore (Nil recovery), (3) Public Sector and other Undertakings (J&K, HPMC Ltd) – Rs 12.66 crore (Nil recovery), (4) Electricity Board, JKPDC – Rs 85.04 crore (Nil recovery), (5) Agro Industries – Rs 45.93 crore (Nil recovery), (6) J&K Industries Ltd – Rs 382.73 crore (Rs 1.25 crore), (7) Jammu and Kashmir State Road Transport Corporation Limited – Rs 376.72 crore (Nil recovery).
The recovery of loan is very poor resulting in continuous increase in outstanding balances from Rs 1,493.94 crore in 2014-15 to Rs 1,725.77 crore in 2018-19.
Recovery of loans and advances during the year was only 0.25 per cent of outstanding loans. Audit examination of Loans and Advances given to Agro Industries and J&K State Road Transport Corporation revealed that there was outstanding loan of Rs 7.94 crore and Rs 346.72 crore respectively as on March 2018. Despite poor performance of recovery, State Government disbursed new loan of Rs 37.98 crore and Rs 30 crore respectively and no amount was recovered from these entities during 2018-19. As on March 2019, loan amounting to Rs 45.93 crore and Rs 376.72 crore were outstanding against Agro Industries and J&K State Road Transport Corporation which had an accumulated losses of Rs 42.10 crore and Rs 1,148.12 crore as per their latest finalized accounts. Thus, loans were sanctioned by the State Government without ensuring its recovery.
It was recommended to the Jammu and Kashmir government by the central agencies that since recovery has been almost negligible, government may consider booking these amounts under Revenue Expenditure as Grants/Subsidies instead of Capital Expenditure for ensuring that accounts reflect the correct position. However, there is no confirmation as on date about whether the government here has adhered to such norms or not. |
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