An audit by the accountant general has uncovered a staggering Rs 3,593.52 crore in unpaid dividends from state public sector enterprises. This massive amount remains pending due to insufficient monitoring and internal controls. The findings highlight a significant oversight in financial management.
The audit report, accessed by The New Indian Express, reveals that 23 SPSEs have not paid dividends for years spanning 2017-18 to 2024-25. Many of these enterprises are profit-making, yet the funds have not been transferred. This delay affects the state’s revenue streams.
A Finance department memorandum from February 2016 required PSUs to pay an annual dividend. It specified that the amount should be 30% of either the profit after tax or the state government’s equity, whichever is higher. This directive aimed to ensure consistent revenue for the state.
The audit analyzed profit after tax data from the annual accounts of selected SPSEs over four to five years. It compared these figures with the dividends actually paid and recorded in the state’s finance accounts. The discrepancies were substantial and pointed to systemic issues.
Several SPSEs reported profits after tax but failed to remit the mandated dividends. This non-compliance has led to a buildup of unpaid amounts over time. The lack of adherence to financial regulations is concerning for governance.
Odisha Power Transmission Corporation Limited has the highest outstanding dividend of Rs 1,616.77 crore. This single entity accounts for a large portion of the total pending amount. Its failure to pay impacts the overall financial health of the state.
Odisha Power Generation Corporation Limited follows with Rs 516.88 crore in unpaid dividends. The accumulation reflects a pattern of neglect across multiple enterprises. These funds are crucial for public spending and development projects.
Odisha Hydro Power Corporation Limited owes Rs 315.03 crore. Similarly, Odisha Mining Corporation Limited has Rs 319.52 crore pending. The combined total from these companies underscores the scale of the issue.
Odisha Coal and Power Limited has not paid Rs 242.24 crore. Odisha State Financial Corporation owes Rs 205.64 crore. Industrial Promotion and Investment Corporation of Odisha Limited has Rs 155.37 crore outstanding.
Odisha Lift Irrigation Corporation Limited adds Rs 67.26 crore to the total. Each of these enterprises contributes to the growing pile of unpaid dividends. The cumulative effect strains the state’s budgetary planning.
The audit’s findings emphasize the need for better oversight mechanisms. Without improved controls, such financial lapses may continue. This situation calls for immediate corrective actions to recover the funds.
Ensuring that SPSEs comply with dividend payment mandates is essential. It safeguards public resources and supports state initiatives. The pending dividends represent missed opportunities for reinvestment.
The report serves as a wake-up call for financial accountability. Addressing these gaps can enhance transparency and efficiency. Stakeholders must prioritize resolving these outstanding payments.
Moving forward, regular audits and stricter enforcement could prevent future accumulations. The focus should be on upholding financial discipline across all state enterprises. This approach will benefit the state’s economic stability.