Haryana government earned average return of 0.10 per cent on making investments in statutory corporations, rural banks against paying an average interest of 9.18 per cent on its borrowing during 2008-13, government auditor CAG said in its latest report.
Comptroller and Auditor General of India (CAG) in its report on state finance for 2012-13 said, "the average rate on government investments was 0.10 per cent in last five years while the government paid an average interest rate of 9.18 per cent on its borrowings."
Haryana government's investments in statutory corporations, rural banks, joint stock companies and cooperatives jumped from Rs 5,031.32 crore in 2008-09 to Rs 7,240.02 crore, as per the report.
"While the government investments increased by 44 per cent over a period of five years from 2008-09 to 2012-13, the return from investments decreased from Rs 8.27 crore (0.16 per cent) in 2008-09 to Rs 7.05 crore (0.10 per cent) in 2012-13," it said while suggesting the government to consider avenues to improve rate of return on investments.
Government paid interest at an average rate of 7.82 per cent to 9.86 per cent on its borrowings during 2008-13 whereas the percentage of return from investments ranged between 0.02 and 0.17 during same period, said the report.
CAG report also found that 12 government companies with an investment of Rs 6,757 crore had incurred accumulated losses of Rs 17,593 crore. Among them, the maximum losses were suffered by power distribution companies-Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam at Rs 12,423.62 crore and Rs 4,306.97 crore, respectively.
"Losses of Rs 17,017 crore in four power generation and distribution companies (UHBVN, DHBVN, Haryana Power Generation and Haryana Vidhyut Parsaran Nigam) constituted 97 per cent of total losses which were mainly attributable to non-revision of tariff and huge aggregate technical and commercial losses," it said.
