Government investments yield 12% returns

The govt paid an average interest rate of 6.09% to 7.63% during 2009-10 to 2013-14

The state government's investments on statutory corporations, rural banks, joint stock companies and cooperatives have yielded an average return of 11.82 per cent in the last five years, says a report by the Comptroller & Auditor General of India (CAG) on state finances for the year ended March 2014.

The government paid an average interest rate of 6.09 per cent to 7.63 per cent during 2009-10 to 2013-14. As of March 2014, the state government had invested Rs 3308.79 crore in statutory corporations, rural banks, joint stock companies and cooperatives.

Out of this, the government investment on 86 PSUs stood at Rs 2880.97 crore. The government received dividend of Rs 452.40 crore from one cooperative society, six government companies and one rural bank during 2013-14. Odisha Mining Corporation (OMC) that paid Rs 400 crore to the government by way of dividend was the chief contributor.