The Comptroller and Auditor General of India has flagged delays in implementation of irrigation projects and textile parks in Telangana and faulted the method of selecting the beneficiaries of the crop loan waiver scheme in the state.

In its report for the year ended March 2016, the CAG said the verification of beneficiaries under ‘farmer family’ norm was conducted without Aadhaar numbers, despite it being mandatory in the scheme guidelines. And no social audit was conducted to eliminate duplicate or multiple financing of beneficiaries.

Multiple loan waivers The agriculture department did not verify the crop loans taken by farmers from other district bank branches in multiple districts and mandals, the report said.

The audit found banks claimed excess interest of ₹183.98 crore on total outstanding crop loan of beneficiaries and some of the banks did not claim interest, resulting in eligible farmers being deprived of ₹66 crore towards waiver of interest.

CAG found delay in remittance of unspent amount into government account by joint directors of agriculture and banks, mainly because of delayed reconciliation of accounts. The nodal banks and bank branches had unspent balances even after furnishing utilisation certificates.

Project costs The state economic sector accounted for a total expenditure of ₹26,532.72 crore during 2015-16 and of this, the major portion was incurred by the Irrigation and Command Area Development Department ( ₹10,978.72 crore), the agriculture and cooperation department ( ₹5668 crore) and the energy department ₹5195 crore.Despite receiving grants under Accelerated Irrigation Benefit Programme, three projects — Gollavagu, Neelwai and Peddavagu — were yet to be completed even after 11 years. It showed shortfalls in utilisation of funds and possibility of conversion of grants to loans cannot be ruled out, it observed.

Textile parks The audit report highlighted delays in completion of development of textile and apparel parks. This resulted in loss of Centre’s assistance to the State.

In the apparel export park located at Gundlampochampally, 53 per cent of the units belong to non-textile /apparel makers and the park did not achieve its intended purpose of being an apparel hub.

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