Karnataka textile policy failed to achieve intended target: CAG

Anil Urs Bengaluru | Updated on October 11, 2019 Published on October 11, 2019

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There was inordinate delay in release of incentives and subsidies

The Karnataka textile policy 2013-18 failed to achieve its intended investment and job generation targets, said the Comptroller and Auditor General of India (CAG).

“The ₹10,000-crore investment target and 5 lakh employment generation target envisaged in the policy were not achieved and shortfall was to the extent of 63 per cent and 76 per cent, respectively”, said the CAG in its economic social report for March ended 2018.

“Imparting of skill development training to unemployed youth was reduced from 2.96 lakh to 1.09 lakh citing inadequate budgetary support, the report added.

The CAG conducted a performance audit on the Karnataka Textile Policy 2013-18 to assess the outcomes of the initiatives and factors responsible for under performance, said Anup Francis Dungdung, Accountant General Karnataka.

The government which had planned six textile parks in the State with integrated facilities with private sector participation had not fructified. An amount of ₹6.35 crore was irregularly released to an SPV in Kalaburgi though it had not fulfilled the prescribed conditions,” explained Dungdung.

He said “There was inordinate delay in release of incentives and subsidy amount to beneficiary units, which affected their cash flow. Incentive/subsidy to one super-mega project was sanctioned by exceeding the admissible limit under the textile policy on extraneous grounds caused extra financial implications of ₹315 crore.”

“₹84.53 crore released for the implementation of various schemes was retained in the bank for period ranging from two to five years without utilisation. In another case, the department paid ₹51.89 crore to Bescom as penal interest for not clearing the bills in full.” he added.


On the Compensatory Afforestation Fund Management and Planning Authority (CAMPA), Dungdung said there was a shortfall to the extent of 51 per cent in raising compensatory afforestation in compensatory lands in respect of forest lands diverted during 2013-18.

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Published on October 11, 2019
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