Report of the Comptroller and Auditor General of India on Economic Sector for the Year Ended March 2014
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Report of the Comptroller and Auditor General of India on Economic Sector for the year ended March 2014 Government of Odisha Report No. 6 of the year 2014 Report of the Comptroller and Auditor General of India on Economic Sector for the year ended March 2014 Government of Odisha Report No. 6 of the year 2014 TABLE OF CONTENTS Reference to Description Para Page Preface (v) Chapter 1 : Introduction Introduction 1-8 Chapter 2 : Performance Audits DEPARTMENT OF WATER RESOURCES Accelerated Irrigation Benefit Programme 2.1 9-35 DEPARTMENT OF FOREST AND ENVIRONMENT Environment Audit on Air and Water Pollution in Odisha 2.2 36-60 Chapter 3 : Compliance Audits DEPARTMENT OF AGRICULTURE Functioning of Orissa University of Agriculture and Technology 3.1 61-71 DEPARTMENT OF WATER RESOURCES Idle investment 3.2 71-72 Undue benefit to contractors 3.3 72-73 EMPLOYMENT AND TECHNICAL EDUCATION AND TRAINING DEPARTMENT Upgradation of Industrial Training Institutes through Public 3.4 73-84 Private Partnership and Setting up of New Polytechnics DEPARTMENT OF FOREST AND ENVIRONMENT Implementation and effectiveness of plantation 3.5 84-91 Short realisation of Net Present Value 3.6 92 Non disposal of timber 3.7 92-93 INDUSTRIES DEPARTMENT Implementation of Single Window Mechanism and Financial 3.8 93-106 Incentives under Industrial Policy Resolution 2007 Reference to Description Para Page WORKS DEPARTMENT Extra cost due to inflated rate in estimate 3.9 106-107 Non recovery of Government dues from the defaulting 3.10 107-108 contractor Extra cost due to non finalisation of tender within extended 3.11 108 validity period Extra cost due to non execution of agreement within validity 3.12 109 period Avoidable extra expenditure 3.13 110-111 FINANCE DEPARTMENT Response to Audit 3.14 111-113 (ii) APPENDICES Appendix Description Reference to Number Para Page Number 2.1.1 Payment of additional cost due to delay in land 2.1.7.9 114-115 acquisition 2.1.2 Statement showing the details of extra cost due to 2.1.8.1 116-118 non adherence to SoR 2.2.1 Summary of use based classification system 2.2.7 119 2.2.2 Surface Water Monitoring Stations under SPCB, 2.2.7.2 120-121 Odisha 2.2.3 Statement showing samples collected and checked in 2.2.7.10 122 SPCB Laboratory which showed BOD, DO and TC at high levels 3.1.1 Statement showing sanctioned strength and men in 3.1.2.1 123 position of teaching staff 3.1.2 Statement showing intake capacity and actual 3.1.2.3 124 occupancy of students in different hostels 3.1.3 Statement showing Loss of ` 0.35 crore to OUAT 3.1.4.2 125 due to sale of seeds as non seeds 3.2.1 Status of Minor Irrigation Projects under RIDF-XIII 3.2 126 & XIV 3.3.1 Statement showing details of extra cost involved in 3.3 127 the estimates due to provision of manual excavation of earth instead of mechanical excavation 3.4.1 Statement showing number of trades proposed for 3.4.2.1 128 upgradation/ introduction 3.4.2 Statement showing project outlay, allocation and 3.4.2.2 129 utilisation of funds under CoE 3.4.3 Statement showing shortfall in upgradation and 3.4.3.1 130 introduction of trades 3.4.4 Statement showing release of funds and utilisation 3.4.3.2 131 thereof for projects without World Bank assistance 3.4.5 Loss of interest due to delay in investment of funds 3.4.3.2 132 in fixed deposits by ITIs 3.4.6 Statement showing number of trades not abolished 3.4.5 133 3.4.7 Statement showing number of vacancies in ITIs 3.4.7 134 3.4.8 Statement showing percentage utilisation of funds 3.4.11.1 135-139 released for construction of 22 Government Polytechnics 3.4.9 Statement showing sanction of fund to executing 3.4.11.1 140 agencies prior to handing over of land 3.5.1 Statement showing execution of plantations through 3.5.3.3 141 contractors (iii) Appendix Description Reference to Number Para Page Number 3.5.2 Statement showing diversion of plantation fund 3.5.4.2 142 3.5.3 Extra expenditure paid on wage during 2012-14 3.5.4.3 143 3.6.1 Short realisation of ` 1.22 crore towards Net Present 3.6 144 Value (NPV) for forest land diverted for non forestry purposes 3.7.1 Division-wise abstract of non-disposal of timber 3.7 145-146 seized in undetected forest offence cases 3.8.1 Year-wise status of proposals received at SLNA for 3.8.2.2 147 setting up of industries 3.8.2 Year-wise CAF received at DLNA of eight selected 3.8.2.4 148 Districts for 2007-14 for setting up of industries 3.13.1 Statement showing Road-wise CBR value, Traffic 3.13 149-150 density and sanctioned estimated cost 3.13.2 Statement showing details of avoidable extra cost 3.13 151-152 3.14.1 Statement showing Department-wise Inspection 3.14 153 Reports / Paragraphs issued up to 31 March 2014 but not settled by 30 June 2014 3.14.2 Statement showing the year-wise break up of 3.14 154 outstanding Inspection Reports / Paragraphs issued up to 31 March 2014 but not settled by June 2014 3.14.3 Statement showing serious irregularities noticed and 3.14 155 reported in Inspection Reports Glossary 156-162 (iv) Preface This Report for the year ended March 2014 has been prepared for submission to the Governor of Odisha under Article 151 of the Constitution of India. The Report contains significant results of the performance audit and/or compliance audit of the Departments of the Government of Odisha under the Economic Sector including Departments of Agriculture, Co-operation, Commerce and Transport, Energy, Employment and Technical Education and Training, Forest and Environment, Finance, Fisheries and Animal Resources Development, Industries, Micro Small and Medium Enterprise, Steel and Mines, State Excise, Textile Handloom and Handicraft, Tourism, Works and Water Resources. However, Departments of Food Supplies and Consumer Welfare, Finance, General Administration, Health and Family Welfare, Higher Education, Home, Housing and Urban Development, Information and Public Relations, Information Technology, Labour and Employment, Law, Panchayati Raj, Parliamentary Affairs, Planning and Co- ordination, Public Enterprises, Public Grievances and Pension Administration, Revenue and Disaster Management, Rural Development, School and Mass Education, Science and Technology, ST and SC Development and Minorities and Backward Classes Welfare, Sports and Youth Services and Women and Child Development are excluded and covered in the Report on General and Social Services. The instances mentioned in this Report are those, which came to notice in the course of test audit for the period 2013-14 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports; instances relating to the period subsequent to 2013-14 have also been included, wherever necessary. The audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. (v) CChhaapptteerr 11 IInnttrroodduuccttiioonn Chapter 1 Introduction Chapter 1 Introduction 1.1 About this Report This Report of the Comptroller and Auditor General of India (CAG) on Government of Odisha relates to matters arising from Performance Audit of Accelerated Irrigation Benefit Programme, Environment Audit on Air and Water Pollution in Odisha and Compliance Audit of Government Departments/Autonomous Bodies. The primary purpose of the Report is to bring to the notice of the State Legislature, important results of audit. Auditing standards require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions. The audit findings are expected to enable the executive to take corrective action as also to frame policies and directives that will lead to improved financial management of the organisations, thus contributing to better governance. Compliance Audit refers to examination of the transactions relating to expenditure, receipts, assets and liabilities of the audited entities to ascertain whether the provisions of the applicable Rules, Laws, Regulations, various orders and instructions issued by the competent authorities are being complied with. Performance Audit examines the extent to which the objectives of an organisation, programme or scheme have been achieved economically, efficiently and effectively. Environment Audit examines the extent to which the objectives of adequate measures for compliance to Environmental Laws, infrastructure and funding, effective monitoring mechanism framed for timely identification and remediation of sources of pollution, proper management information system for evaluating impact of pollution on environment and checking Water and Air Pollution in Odisha have been achieved. This chapter provides the audited entity’s profile, the planning and extent of audit and a synopsis of the significant audit observations. Chapter 2 of this Report deals with the findings of Performance Audit and Environment Audit and Chapter 3 deals with Compliance Audit of various departments. The cases mentioned in the Report are among those which came to notice in the course of test audit of accounts during the year 2013-14 as well as those which had come to light in earlier years but could not be dealt with in previous Reports. Matters relating to the period subsequent to 2013-14 have also been included, wherever necessary. 1 Audit Report (Economic Sector) for the year ended March 2014 1.2 Audited entity’s profile There were 38 departments in the State at the Secretariat level headed by Additional Chief Secretaries/ Principal Secretaries/ Commissioner-cum- Secretaries/ Secretaries, assisted by Directors and Sub-ordinate Officers.