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The Comptroller and Auditor General (CAG) has faulted the Andhra Pradesh Government for not cancelling the allotment of 1,122 acres of land made to Hinduja National Power Corporation Ltd (HNPCL) even though they have not utilised the land for the project.
The CAG in its report for the year ended March 31, 2010 (Civil) observed that “Despite facing serious power shortage, Government failed to cancel the allotment of land to a private party which failed to set up power plant.” The report observed: “It could have allotted the land to other parties willing to supply power at competitive prices.”
In 1999, the Government handed over the land without collecting the full amount, it observed.
Terms flouted
Audit revealed that the land remained unutilised even by February 2010. The agreement with HNPCL stipulated that financial closure of the project should be achieved within 12 months of the agreement (April 15, 1998) and the project completed within 44 months thereafter.
Basic flaw in the terms relating to handing over the land to HNPCL was that it linked payment of the balance amount with financial closure of the project which never took place as the time limit was not enforced.
In 2007, there were claims that Government corporations such as NTPC and AP Genco were keen to develop projects. The government did not explore these options but allowed land to remain with the Hindujas, the report noted.
WAKF LANDS
The MIM leader, Mr.Akbaruddin Owaisi, said 6,500 acres of Wakf Board lands had been allotted to various projects, including to Hyderabad International Airport, ISB, Wipro, Lanco, Infosys, Emaar Properties, Rahejas and Brahmani Infratech, in gross violation of established norms.
The Andhra Pradesh Industrial infrastructure Corporation Ltd (APIIC) has made these allotments without properly verifying records, causing loss to the Wakf Board. Citing recent orders of High Court and Wakf tribunal, he said most of the special economic zones, for whom land was allocated, would be in trouble, he said.
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