Nation Current Affairs 25 Jul 2017 Tidco failed to coll ...

Tidco failed to collect service charges from L&T: CAG

DECCAN CHRONICLE.
Published Jul 25, 2017, 6:24 am IST
Updated Jul 25, 2017, 6:24 am IST
CAG also commended the profit making public sector units.
As per clause 17 of the agreement, Tidco would provide certain services to L&T and charge for the services.
 As per clause 17 of the agreement, Tidco would provide certain services to L&T and charge for the services.

Chennai: In a blatant violation of agreement norms, Tamil Nadu Industrial Development Corporation has failed to collect service and agreement charges from Larsen and Toubro (L&T) infrastructure benefiting the company to an extent of Rs 46 crore, according to a recent CAG report. CAG also found lethargy and red-tapism amo ng departments coming under state ministry of industries. Tidco entered into a joint venture agreement with L&T to form a ship building company (L&T Shipbuilding Ltd). As per clause 17 of the agreement, Tidco would provide certain services to L&T and charge for the services.

The company rendered the services between 2008 to 2014 in the form of forwarding applications and statutory clearances such as clearance of ministry of environment and forests, Tamil Nadu Pollution control Board and also the approval for a special economic zone. But the audit scrutiny revealed that Tidco as a company failed to collect the entitled charges for various charges, which is around Rs 46.65 crore and this is one per cent of the total project cost Rs 4,665.38 crore excluding the land cost, the CAG said.

 

CAG also commended the profit making public sector units. As per the latest finalized accounts, out of 68 working PSUs, 41 PSU earned profit of Rs 811 crore and 21 PSUs incurred a loss of Rs 15,684.69 crore.

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