CAG finds irregularities of Rs26,672 cr in Narendra Modi govt

The state government and various Gujarat-owned PSUs have come under fire from the Comptroller and Auditor General (CAG) for 'rampant corruption and irregularities'. In its reports that were tabled in the state assembly on Friday (the last day of the current session), the CAG has estimated bungling of more than Rs16,000 crore in 2010-11. It had also pointed out irregularities of Rs26,672 crore in the Modi government in the last nine years.

The watchdog also severely indicted the state-owned Gujarat State Petroleum Corporation (GSPC) for favouring industrial houses.

"Against estimated exploration cost of $109.70 million (Rs500 crore), the actual drilling cost incurred was $1.40 billion (Rs6,265 crore), i.e. 12.8 times higher than original estimate. This was due to submission of bids for KG block without proper assessment of technical and financial issues," CAG said.  CAG said that GSPC had purchased gas on spot prices but sold it at lower prices, resulting in extension of undue benefit of Rs70.54 crore to Adani Energy.  Cag found GSPC subsidiary, Gujarat State Petronet Limited, to have passed on undue benefit of Rs12.02 crore to Essar Steel by way of waiver of capacity charges contrary to provisions of gas transmission agreement.

"The CAG has exposed corruption of a staggering Rs16,706 crore by Narendra Modi government. There is bungling of crores of rupees in award of contracts," alleged leader of opposition, Shaktisinh Gohil.

CAG was also critical of the functioning of a host of other PSUs such as Dahej SEZ Limited, Gujarat State Electricity Corporation Limited, Gujarat Urja Vikas Nigam Limited, and Sardar Sarovar Narmada Nigam Limited, among others, stating they had incurred avoidable expenditure.

It highlighted various irregularities in the functioning of government departments, and cited several instances of non-utilisation of Central grants for various projects. It also spoke about the long delays in the execution of several projects, and wasteful expenditure incurred on them. Apart from financial losses, the CAG also pointed out some of the social, environmental and ecological losses, which are immeasurable in terms of money but cost heavily to the state.

The CAG has made some shocking observations in performance audits of forest & environment, Narmada, Water Resources, Water Supply & Kalpasar, and Sports, Youth and Cultural Activities departments.

The report says that there is no water policy formulated by the state. It has also not identified keystone species associated with each river and lake and existing pollution levels. The study of only 7 out of 831 wetlands was conducted, and monitoring of Sabarmati River Cleaning Projects was not adequate.

In Vadodara, untreated sewage, domestic waste water and slaughterhouse waste were discharged in Gorva lake, overflow of which resulted in further polluting Gotri lake. In Surat, industrial units of Hazira released treated water in the estuary of Tapi.  The CAG has also pointed to the inordinate delays in completion of projects, particularly irrigation projects, resulting in blocking of capital. It also said that the government's compliance with rules, procedures and directives was unsatisfactory, which was evident from delays in furnishing utilization certificates against loans and grants paid. Submission of annual accounts was delayed by 22 out of 25 autonomous bodies.