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CAG slams Industry & Commerce Dept, Handloom & Handicraft corporation due to non-performance, massive losses in 42 out of 43 emporiums : Industry Minister Tapan in deep slumber; Rs. 35 crores loss in 5 years
TIWN
CAG slams Industry & Commerce Dept, Handloom & Handicraft  corporation due to non-performance, massive losses in 42 out of 43 emporiums : Industry Minister Tapan in deep slumber; Rs. 35 crores loss in 5 years
PHOTO : A Weaver making long cloth at a Hand loom at Bashakpara ,Agartala. TIWN File Photo

AGARTALA, December 19 (TIWN): CAG’s evaluation of Tripura Handloom & Handicraft corporation points out the massive corruption, mis-management, nepotism and overall inefficiency plagued management in Industry & Commerce Dept, Handloom,Handicraft sectors. As per CAG “The Company did not have any long term or short term plan for achievement of its objectives. The sales targets set in the Memorandums of Understanding by the Government for the years 2008-09 to 2012-13 were neither achieved nor monitored. As per the profitability statement prepared by Audit for the year 2012-13, 42 out of 43 emporiam operated by the Company incurred losses. Accumulation of inventory and debtors due to their poor management resulted in severe strain on working capital.The Company had incurred operational losses during all the five years from 2008-09 to 2012-13 aggregating ` 33.77 crore.Despite capital infusion of` 27.93 crore by the State Government during 2008-13, the entire paid up capital of the Company was wiped off by the losses and the net worth of the Company had become negative”.

Monitoring activities and the internal control system of the Company were found to be deficient. Undue delay in execution of Urban Haat Project resulted in cost escalation of Rs. 2.49 crore along with non-attainment of its objectives.

Handloom industry in the State of Tripura plays a dominant role in the economic development of the rural people by providing gainful employment. The State is also known for the rich diversity of its handicraft products. At present, the Company has been trading mainly in the Handloom/Handicraft items being procured from clusters of weavers/artisans within the State. The Company had

43 sales outlets named as emporia under the brand name “Purbasha” spread across four States viz., Tripura (33), Assam (3), West Bengal (6), and New Delhi (1) for selling its products. Besides, the Company had two Power loom Units (at Indranagar and Badharghat), one Common Facility Centre and two Central Procurement Stores.

 

It may be seen from above that MOU sales targets were not achieved in any of the five years. As per the MOU entered into during 2008-09, the sales targets for nextfour years from 2009-10 to 2012-13 were fixed at ` 4.65 crore, ` 5.30 crore,` 6.10 crore, ` 7.00 crore respectively based on the sales projections made for the respective years.

It was, however, observed that the annual sales targets for the respective years were fixed at significantly lower side than the projections made during 2008-09 based on previous years’ sales performance. The fixation of sales targets at lower values than the projections made in 2008-09 was indicative of the inadequacy of Company’s efforts towards marketing and sales promotion. It furtherreflected that the annual targets were merely based on the previous years’ sales without any study or evaluation of the potentials of the Company and its product. Though the MOU provided for monitoring of Company’s performance on quarterly basis, in practice, however, there was no such monitoring done by the Government.

The sales targets provided under MOU were not bifurcated for Government and private sales as the Government sales was merely a captive sales16. Therefore, the Company’s actual performance with reference to private sales in the competitive environment could not be judged or monitored by the Government..

The Company did not analyse unit-wise profitability of various emporia. Consequently, meaningful review of performance of emporia did not exist. Unit wise profitability statement for the year 2012-13 as prepared by Audit and summarized revealed the following:

1).Out of total 43 emporiams of the Company, only one emporium (viz. New Delhi emporium) earned profits and all the remaining 42 emporia (98 per cent) had incurred losses during the year. These losses have been arrived at without apportioning the Head Office overheads;

2).Only two of these forty three units were able to generate adequate contribution to meet their salary expenditure.

1. H.O. Complex, Agartala and 2. New Delhi

3). Margin on sales generated by six18 out of forty three units was not adequate to meet even their operational expenditure like electricity charges.

In other words, Tripura's Industry Department, Handloom & Handicraft corporation in deep plunge as Industry Minister Tapan Chakraborty has no clue, neither has any knowledge or management expertise to handle this crisis. As most of the inept officials occupying chairs of Handloom & Handicraft corporation, Industry Department, so Tripura's traditional Handloom & Handicraft Industry heading towards grave.

Chief Minister hand picked many of his close comrades to head key ministries of State - most these Ministers only qualification is 'loyality' to CM.  Unfortunately, Tripura's Industry being headed by one of the most dumb and non-performer Minister of State Cabinet.

 

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