The Hindu Business Line : Incorrect land allotment costs AP industrial body Rs 309 cr: Report

The Comptroller and Auditor General of India has observed that due to incorrect allotment of land to various industrial estates at reduced prices, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has foregone revenue of Rs 309 crore.

The CAG in its report (Commercial) for the year ended March 31, 2007, on the Andhra Pradesh Government, said that this loss was due to reduced rates, and at rates other than commercial value the corporation extended undue benefits.

The APIIC took up establishment of Integrated Infrastructure Development Centres with an outlay of Rs 2.36 crore and Rs 4.05 crore, and incurred a total expenditure of Rs 1.75 crore and Rs 1.94 crore, respectively, at two sites. Failure to provide common facilities as envisaged in the scheme resulted in continued backwardness of the region.

Further, the common centres constructed at growth centres remained largely unutilised due to slow progress of development of growth centres.

The report stated that the State as on March 31, 2007, had 56 public sector undertakings (PSUs) comprising 53 Government companies and three statutory corporations. In addition, there were nine companies (three working and six non-working) under the purview of the Companies Act, 1956.

Investment in PSUs

The total investment in 38 working PSUs increased from Rs 31,704 crore as on March 31, 2006, to Rs 33,195 crore as on March 31, 2007. The total investment in 18 non-working PSUs also increased from Rs 263 crore in 2006 to Rs 263 .34 crore in 2007.

Further, the budgetary support in the form of capital, loans and subsidies disbursed to the working capital of PSUs increased from Rs 4,045 crore in 2005-2006 to Rs 5,346 crore in 2006-2007. The Government guaranteed loans aggregating Rs 1,514 crore obtained by seven working PSUs during 2006-2007 and guarantees worth Rs 18,278 crore was outstanding against 15 PSUs.

Referring to mining and marketing activities, the CAG report noted that AP Mineral Development Corporation lost Rs 16 crore by not following the annual plan and grade-wise excavation.

REVENUE RECEIPTS

In another report on Revenue Receipts, the CAG said that the total receipts of the State Government for the year 2006-2007 amounted for Rs 44,245 crore against Rs 34,851 crore for the previous year.

Sixty nine per cent of this was raised by the State through tax revenue (Rs 23,926 crore) and non-tax revenue was Rs 6,488 crore. The balance 31 per cent was received from the Government of India as the State’s share of divisible Union taxes (Rs 8,866 crore) and Rs 4,965 crore as grants in aid.

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