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Our Bureau

Mumbai, Jan. 4 Five small airports in Maharashtra, which were upgraded with Centre’s financial assistance for boosting exports, hardly handle any export cargo, the Comptroller and Auditor General of India (CAG) has said in its latest report.

These airports, upgraded by Maharashtra Industrial Development Corporation (MIDC), are at Solapur, Nanded, Karad, Kolhapur and Latur.

According to the CAG (Commercial) report, the Centre gave Rs 108 crore between 2002 and 2007 to MIDC for infrastructure upgrade at small airports and industrial parks. At the airports, the funds were spent on creating facilities for exports.

MIDC, the report said, entered into an agreement with Pune-based Mitcon Consultants for preparation of project reports. The consultants were paid Rs 36.80 lakh till March 2007 against total consultancy charge of Rs 43.63 lakh.

The CAG report pointed out that the “airstrip project reports” were not supported by any request or recommendations for air cargo facility from any industrial unit. There was no evidence of usage of the existing cargo facilities by any industries.

CAG report also stated that the export data on perishable items such as milk products, meat, fruit, vegetable processing products, cotton stalk, mushroom, jowar flakes and starch were not available in any of the project reports. On the other hand, data about steel sheets, dairy equipments, cotton stalk, which are usually not exported by air, were listed in the project reports.

Even more appalling was that MIDC spent Rs 138 crore for the projects with no tangible benefits.

MIDC received funds from Centre under the Assistance to States for Developing Export Infrastructure and Allied Activities scheme, which was introduced in 2002, and the money was channelled through the Commerce Ministry.

The scheme was to encourage participation of States for creating infrastructure for the development and growth of exports. Projects for boosting exports and those having direct linkage with exports were included in the scheme.

In Maharashtra, the ASIDE scheme was monitored by a State-Level Export Promotion Committee headed by the Chief Secretary.

The CAG report has revealed that a majority of the committee members of the committee had opposed upgrading the five airports. They unanimously wanted to develop the infrastructure at the Jawaharlal Nehru Port near Mumbai. But the committee allegedly went ahead with the decision based on the directive of Mr Ashok Chavan, the then Industries Minister.

Of the Rs 49 crore sanctioned for creating export infrastructure at Nanded airport, which also happens to be the constituency of Mr Chavan, Rs 18 crore was utilised until March 2007. The CAG reports stated that there is no evidence of exports of any air cargo from this area.

“It was seen that the export turnover of Rs 146 crore in 2004-05 shown in the report (project report) related to one industrial unit producing steel sheets, which had no direct link with expansion of the airstrip.

“There was no evidence that the unit was exporting its final product by air using this airstrip. The project report included export-oriented IT units. However, no IT units have been established till date at Nanded,” the CAG report added.

More Stories on : Infrastructure | Exports & Imports | Regulatory Bodies & Rulings | Airlines | Maharashtra

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