The Comptroller and Auditor General of India in its report on Telangana Economic sector flagged off delays in implementation of irrigation projects, textile parks and faulted the way in which verification of beneficiaries was conducted for the crop loan waiver scheme.
In its report for the year ended March 2016, the CAG mentioned the verification of beneficiaries under 'farmer family' norm was conducted without Aadhaar numbers, despite being mandatory in the scheme guidelines. And no social audit was conducted to eliminate duplicate or multiple financing of beneficiaries.
It observed the agriculture department did not verify the crop loans taken by the farmers from other district bank branches on agriculture lands in multiple districts and mandals.
The audit found banks claimed excess interest of Rs 183.98 crore on total outstanding crop loan of beneficiaries and some of the banks did not claim interest, through stipulated in the scheme guidelines, resulting in eligible farmers being deprived of Rs 66 crore towards waiver of interest.
It observed the delay in remittance of unspent amount into Government account by joint directors of agriculture and banks, mainly due to delay in reconciliation of accounts.
The nodal banks and bank branches had unspent balances even after furnishing utilisation certificates.
On the Telangana road sector, the report stated the formulation of road safety action plan was lagging behind the schedule of works related to demonstration corridor were yet to be completed.
The State economic sector accounted for a total expenditure of Rs 26,532.72 crore during 2015-16 and of this major portion was incurred by the Irrigation and Command Area Development Department ( Rs 10,978.72 crore), the agriculture and cooperation department ( Rs 5,668 crore) and the energy department Rs 5,195 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.
The CAG cited instances of accepting changes in basic project parameters without corresponding changes in the cost of the agreement, leading to benefits to contracting agencies.
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 Gundlapochampally, 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.