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LATEST NEWS UPDATES | UPA's flagship scheme in CAG net

UPA's flagship scheme in CAG net

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published Published on Nov 30, 2012   modified Modified on Nov 30, 2012
-The Times of India

Houses built for the poor allotted to ineligible beneficiaries, diversion of over Rs 100 crore to unapproved ventures, and a huge lapse in completion of projects mark UPA's flagship programme for urban areas — the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The Comptroller and Auditor General (CAG) of India has found serious lacunae and irregularities in the implementation of JNNURM in a nationwide audit that was tabled in Parliament on Thursday.

Flagging irregularities and diversion of funds as major concerns, the federal audit body has suggested to the ministries of urban development and housing and poverty alleviation to have "zero" tolerance policy in these regards.

The auditor found that during the seven-year-period ((2005-06 to 201-12) of JNNURM-I, 63 urban bodies across the country completed only 231 of the 1,298 infrastructure projects — a dismal record of only 18% completion. It was far worse in the case of urban housing projects for the poor. The report showed that only 22 housing projects out of the 1,517 approved ones were completed till the end of last fiscal.

The auditor's report has also brought out that out of 16.07 lakh houses approved only 4.18 lakh were completed till March, 2011, and of these completed dwellings only 2.21 lakh were occupied. The audit has also indicated the "risk of ineligible beneficiaries" deriving benefits of this scheme for the poor due to "deficiencies" in the process of beneficiaries.

In some cases, the CAG found that the beneficiaries were not identified or the surveys were not conducted. There were cases like in Ghaziabad, Uttar Pradesh, where 295 houses were allotted to beneficiaries other than those mentioned in the detailed project reports (DPRs). Similarly in Faridabad, Haryana, out of 1,834 dwelling units only 202 were allotted since the process to identify beneficiaries was underway.

CAG also found that in Ramanagara (Karnataka) against the 444 beneficiaries in the DPR, the final proposal was for construction of 1,800 houses. The audit body has recommended, "Government of India may review the status of all housing schemes and step up the efforts to make allotment to eligible beneficiaries."

In case of infrastructure projects, including in sectors such as transportation, sewage and solid waste management, the CAG found that only 11 out of the selected 216 projects were completed in seven years. To make matters worse, majority of the projects was incomplete. The report blamed deficient preparation and appraisal of DPR, non-availability of land, escalation in costs and change in design and scope.

The auditor said there were eight cases of diversion of funds — amounting to Rs 114.68 crore — in JNNURM projects in Andhra Pradesh, Chhattisgarh, Haryana, Jharkhand, West Bengal and Himachal Pradesh. The diversion was for purposes other than those admissible under JNNURM. In one instance, funds were utilized for payment of salary to the civic employees.

The Times of India, 30 November, 2012, http://timesofindia.indiatimes.com/india/UPAs-flagship-scheme-in-CAG-net/articleshow/17420958.cms


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