CAG raps state govt for high power subsidy

It also found that only 54% of the agriculture consumers in Gujarat had metered electricity connections.

The CAG has rapped the Gujarat government for the substantially high quantum of power subsidy,noting that the states expenditure on subsidies increased by 92% in the five years between 2007 and 2012.

It also found that only 54% of the agriculture consumers in Gujarat had metered electricity connections.

The expenditure on subsidies in Gujarat stood at 5,600 crore in 2011-12 which,when compared to the previous year,registered an increase of 12.5%. A substantial increase in subsidies has been observed in power sector (Rs 556 crore),road transport (Rs 203 crore) and welfare of SC/STs and other backward classes (Rs 116 crore).

The share of power sector in total subsidy is substantially high at 58%. The government should initiate long-term measures to contain the power subsidy, stated CAG in the report dealing with the states finances. The power subsidy was being given to support farmers in the agriculture sector.

Most of state PSUs profitable

Public sector units (PSUs) in Gujarat remained largely profitable during the financial year 2011-12,the CAG has said,adding that out of 66 working PSUs in the state,41 earned profit of over Rs 4,300 crore.

Major contributors to the profit were Gujarat State Petroleum Corporation Limited (Rs 941 crore),Gujarat State Petronet Limited (Rs 769 crore) and Gujarat Mineral Development Corporation Limited (Rs 717 crore).

Ten PSUs incurred loss of about Rs 400 croreand seven of the 12 non-working PSUs have commenced liquidation process.

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