Official auditor CAG has flayed the Tamil Nadu government for not formulating a policy on paying a minimum dividend to PSU shareholders, despite few of them reporting profits to the exchequers.
"The state government has not formulated a dividend policy for payment of minimum dividend. As per the finalised accounts as of September 30, 2013, 43 PSUs earned an aggregate profit of Rs 615.29 crore and 11 PSUs declared total dividend of Rs 74.51 crore", CAG said in its report.
Some of the PSUs that declared dividend -- Tamil Nadu Newsprint and Papers Ltd Rs 34.61 crore, State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Rs 14.48 crore, TIDEL Park, Chennai Rs 13.20 crore -- constituted 83.60 per cent of the total dividend paid of Rs 74.51 crore in 2012-13.
In 2012-13, the total turnover of state PSUs was Rs 70,673.64 crore and the major contributors to profit were SIPCOT at Rs 182.32 crore, Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd at Rs 95.72 crore, Tamil Nadu Newsprint and Papers (TNPL) Rs 91.48 crore.
Heavy losses were incurred by Tamil Nadu Generation and Distribution Corporation Ltd to the tune of Rs 13,321.33 crore followed by the eight State Transport Corporations amounting to Rs 856.52 crore as of September 30, 2013, it said.
Pulls up ELCOT
CAG has faulted the state government promoted Electronic Corporation of Tamil Nadu (ELCOT) for establishing special economic zones without undertaking any feasibility studies.
"Other than the IT SEZ taken up by ELCOT in Chennai, the other SEZs did not fulfil the objective as SEZs were "established without conducting feasibility studies and without preparation of DPR (Detailed Project Report)", a CAG report said.
According to its findings, the government directed ELCOT to establish IT specific SEZs (special economic zones) considering the benefits of increased foreign investment and creating of massive employment opportunities, it said.
Land acquired for setting up SEZs in Tirunelveli and Salem were "unsuitable" while in Madurai, ELCOT took up the project "without ascertaining the market potential".
