CAG report slams Gujarat's development; details grave financial irregularities

Written By DNA Web Team | Updated: Jul 27, 2014, 12:17 PM IST

The Comptroller and Auditor General (CAG) report on the state of Gujarat highlighted grave financial irregularities in the administration of the state. The report, which was tabled in the Gujarat Assembly on Friday, showed that irregularities of as much as Rs 25,000 crore were noticed which included Rs 1,500 crore worth of undue benefits to companies like Reliance Petroleum, Essar Powar and Adani Group. 

The report also noted that the much publicised solar projects of the Gujarat government were awarded to 'ineligible bidders' in turn created excess burden of Rs 473 crore on the power consumers of the state, reports the Indian ExpressThe inability of the Gujarat Urja Vikas Nigam Limited (GUVNL) to fix delivery points after finalising the power agreement led to 'undue benefit of Rs 587.50 crore to Essar Power Gujarat Ltd'.

The CAG also pointed out that the government was short of Rs 118.12 crore in recovery due to the non supervision 'of the construction quay in the phase 1 of the Adani Group-owned Mundra port'. 

The low wharfage rate applied by the Gujarat Maritime Board resulted in the government being short of as much as Rs 649.29 crores with Reliance Petroleum Limited.

Thus, even though the Gujarat development model had been the centrepoint of the prime minister's campaign, these irregularities pointed out by the CAG spring up serious questions about the so called 'progress' in Gujarat.