CAG says Goa getting meagre returns on investment in state-run units

The CAG report says average return on Goa's investment in statutory corporations, government companies, joint stock companies and co-operatives was only 0.17% during last five years

Panaji: Criticising the fiscal management practices of the Goa government, the Comptroller and Auditor General of India (CAG) report for 2010-11 has said that its investment in state-run corporations has brought meagre returns even as it paid high interest on borrowing, reports PTI.
The CAG report which was tabled in the assembly said that the average return on state's investment in statutory corporations, government companies, joint stock companies and co-operatives was only 0.17% in the last five years while the government paid an interest of 7.46-7.97% on its borrowings during this period (2006-11).
As on March 2011, the state government had invested Rs382.16 crore in state-run companies and cooperative banks, the CAG report stated.
The state made a capital contribution of Rs9.50 crore in the state-run Kadamba Transport Corp during the year 2010-11 itself while Goa State Scheduled Tribes Finance and Development Corp received Rs4.90 crore and co-operative banks and societies Rs5 crore.
"The government should take steps to ensure better value for money in investments. Otherwise, high cost borrowed funds will continue to be invested in projects with low financial returns," the CAG stated.
Meanwhile, referring to another example of financial indiscipline, the CAG report said that Goa government has been transferring funds directly to state agencies for the implementation of various schemes, programmes in social and economic sectors.
As these funds are not routed through the state budget or state treasury system, the annual accounts do not capture the flow of these funds and state's receipts and expenditure as well as other fiscal variables derived from them are understated.
The auditors have also expressed the possibility of misuse of funds as they are directly transferred to these agencies and not through the state budget.


GMDC Q1 net profit up 11.4% to Rs170.5 crore

Gujarat Mineral Development Corp generated revenues of Rs400.65 crore from its lignite mining operations and Rs19.41 crore from bauxite mining during the first quarter

Ahmedabad: State-run Gujarat Mineral Development Corporation (GMDC) reported 11.4% jump at Rs170.51 crore in its net profit for the quarter ended June, reports PTI.


The company's profit in the corresponding period last year was Rs153.11 crore, an official statement said.


Backed by good mining practices, the company's turnover in the first quater rose by 5.9% at Rs496.53 crore, it said. GMDC's turnover stood at Rs468.78 crore in the corresponding period a year ago.


The company has generated a revenues of Rs400.65 crore from its lignite mining operations and Rs19.41 crore from bauxite mining, the statement said.


Focussing on the value addition, GMDC has set up projects in collaboration with the private sector mineral players.


Gujarat Credo Mineral Resources Ltd is the new joint venture (JV) of GMDC that will focus on manufacturing of Zeolite from bauxite, it said.


Likewise GMDC's JV with Navin Fluorine Ltd shall focus on value-addition to fluorspar at Kadipani Fluourspar Mines, the statement said.


GMDC has set up a 5 MW solar power plant at Panandhro mines, on the mined out reclaimed area there. It has commissioned 100.5 MW wind power and targets to add another 50 MW by October 2012.


Exports dip 5.5% in June to $25 billion; imports down 13.5%

Exports during the April-June quarter dipped by 1.7% to $75.2 billion from $76.5 billion a year ago

New Delhi: India's exports contracted for the second consecutive month in June by 5.45%, year-on-year, to $25 billion on account of growing economic uncertainties in the Western markets, reports PTI.
Imports dipped more sharply, by 13.5% to $35.37 billion during the month, compared to $40.8 billion in June 2011, resulting in a narrower trade deficit of $10.3 billion.
According to the data released by the Commerce Ministry on Wednesday, exports during the April-June quarter of 2012-13 fiscal dipped by 1.7% to $75.2 billion, from $76.5 billion in the same period last fiscal.
Imports during the quarter dipped by 6.10% to $115.25 billion from $122.74 billion in the first quarter of 2011-23 fiscal.
Trade deficit during the quarter stood at $40 billion.
India's Commerce Secretary SR Rao has said that exports are declining because the world over there has been a tremendous dip in trade, in view of global economic slowdown.
Oil and non-oil imports during June too declined by 4.43% and 17.80% to $12.68 billion and $22.68 billion respectively.
During the April-June period, oil imports were valued at $41.58 billion, which was 5.48% higher than $39.42 billion in the corresponding period last year.
Non-oil imports during the quarter declined by 11.57% to $73.67 billion.


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