CITCO expenditure exceeds its earning
With steep fall in earnings of the Chandigarh Industrial and Tourism Development Corporation (CITCO), wages being paid to the employees deployed at various units account for more than the revenue earned by majority of these units.chandigarh Updated: Sep 06, 2013 20:36 IST
With steep fall in earnings of the Chandigarh Industrial and Tourism Development Corporation (CITCO), wages being paid to the employees deployed at various units account for more than the revenue earned by majority of these units.
In both industrial and tourism sectors, CITCO has witnessed a dip in its earnings in recent years. With no financial assistance from the UT administration, CITCO has to generate funds to meet all its expenditures, including salary of staff members, thus making the fall in revenue as a cause for concern.
There are around 1,200 employees working with CTICO, while a workforce of around 500 has been hired on contract through service providers.
There are a total of 21 units in CITCO and according to the figures of first quarter, as many as 13 units are paying salaries more than their earnings.
The figures presented before the last board of meeting reveled that CITCO faced a loss of Rs 13.34 lakh in Industrial Development Facility Centre (IDFC). During the first quarter, it paid Rs 15.78 lakh as employees remuneration, while the gross profit was just Rs 3.64 lakh.
Hotels Mountview and Shavalikview paid Rs 2.86 crore and Rs 2.24 crore, respectively, as salaries in the first quarter, while other expenses accounted for Rs 1.3 crore and Rs 1.2 crore, respectively.
During the same period, Mountview's gross earnings were Rs 3.4 crore, while Shivalikview fetched Rs 3.23 crore.
In the first quarter last year, CITCO made a net profit of Rs 3.23 crore, which has come down to Rs 1.52 crore during the same period this year.
The other units following the same trend, include multi-purpose industrial community centre (MPICC), bus stand canteen, UT secretariat canteen, stop-n-stare, head office canteen, Baithak, drop-in, transit lodge, tours and travels and head office.
With an aim to inject a new lease of life by restructuring its business system, CITCO recently decided to hire a strategic consultant. The consultant would be required to study the existing systems and propose business system requiring restructuring.
A senior official said there was dire need to take preventive measures so as to put a check on falling revenues. "In the past, CITCO use to make healthy profits and there is no reason why same cannot be done in now," said an official.
Despite attempts, CITCO managing director Tanvi Garg was not available for comments.