The Tamil Nadu government spent significantly to promote investments in the state for the period ended March 31, 2016, according to a report by Comptroller and Auditor General of India.

Of the total expenditure of ₹21,794 crore in 2015-16, ₹1,253 crore was spent on industries sector as opposed to ₹703.58 crore in 2014-15, an increase of 78 per cent.

Wooing investors

The increase in expenditure in industries department were to promote investments in Tamil Nadu, global investor meet, value added tax refunds and subsidies such as electricity refunds for promotion of industries during the period, the report stated.

Around ₹6,719 crore was spent on highways and ports, a 7 per cent increase compared to 2014-15 and mostly spent on maintenance of roads under Comprehensive Road Infrastructure Development Programme. Other departments that attracted investments were agriculture (28.45 per cent), animal husbandry, diary and fisheries (8.24 per cent) and public works (16.65 per cent).

Cooperative sugar mills continued to suffer losses of ₹1,095 crore between 2013-14 and 2015-16 due to cost of production coupled with interest burden of ₹963.73 crore. These were primarily due to lack of proper monitoring in implementing deficiencies pointed out by CAG audit report for 2008-09.

Other findings

Other findings include inadequate annual actual plan in many areas that resulted in project delays and avoidable losses. Many plants lacked maintenance due to lack of concurrent evaluation of projects and weak internal control.

As most buildings did not adherence to guidelines as stipulated by the Centre, the State was unable to utilise the grants allocated by the Centre for projects in National Horticulture Mission, Agriculture and Highways and Ports sector.

Related Topics
comment COMMENT NOW