AG audit finds alleged irregularities in MPSEDC works

Various alleged irregularities, including blocking of Rs 12 crore meant for providing Internet connectivity to rural areas and additional expenditure in construction of data centre here, by Madhya Pradesh State Electronics Development Corporation have been mentioned in an audit report by the Accountant General office.
The Centre had in May 2006 launched the Common Service Centre (CSC) project across the country for providing sustainable digital access to rural community.
The MPSEDC was responsible for implementation of the project in the state by acting as a facilitator, coordinator and monitoring agency, with the support of Centre's Department of Information Technology through BSNL which was to provide broadband connectivity to the CSCs.

The MPSEDC had in November 2006 received Rs 18.30 crore as revenue and expenditure support for the implementation of the project. Further, the central government had in March 2009 released Rs 12.20 crore to Madhya Pradesh for providing BSNL connectivity to all CSCs before March 2010.
The amount given to the Madhya Pradesh government was to be further released to the Corporation without any delay failing which the amount would be recovered from it with interest, the audit report said.
"However, the state government released the amount to the company (MPSEDC) only in December 2009 and the company in turn released the amount to the BSNL in February 2010," it said.

As on December 2012, 9,299 CSCs were commissioned, out of which 8,578 were connected through Internet and the remaining 721 were not provided the connectivity even after 21 months from the time of extended time limit of March 2011, it said.

Out of 8,578 CSCs connected through Internet, only 2,201 CSCs were connected through BSNL broadband though 46 months have passed from the date of release of grant of Rs 12.20 crore to BSNL, the audit said.
"This defeated the very purpose of the scheme for which the funds were sanctioned. Further the company has not taken any action for the recovery or adjustment of Rs 12.30 crore from BSNL even after (its) failure to provide connectivity to remaining CSCs," said the audit report for 2012-13, recently made available to anti-corruption activist Ajay Dubey in response to his RTI query.

The audit by AG, which acts as distant arm of Comptroller and Auditor General, also allegedly found delay in completion of Software Technology Park at Gwalior which resulted in huge revenue loss worth several crores to the company.
It also allegedly found additional expenditure of Rs 17.47 lakh in construction of State Data Centre at Arera Hills, here.