CAG pulls up ELCOT

: The Comptroller and Auditor General of India (CAG) has faulted the state government promoted Electronic Corporation of Tamil Nadu (ELCOT) for establishing special economic zones without undertaking any feasibility studies.
"Other than the IT SEZ taken up by ELCOT in Chennai, the other SEZs did not fulfil the objective as SEZs were "established without conducting feasibility studies and without preparation of DPR (Detailed Project Report)", a CAG report said.
According to its findings, the government directed ELCOT to establish IT specific SEZs (special economic zones) considering the benefits of increased foreign investment and creating of massive employment opportunities, it said.

Land acquired for setting up SEZs in Tirunelveli and Salem were "unsuitable" while in Madurai, ELCOT took up the project "without ascertaining the market potential".
ELCOT was able to market only 37 per cent of the land and 13 per cent of the space to IT companies in those areas, it said.
"This was an off-shoot of taking up the ventures concurrently in all the Tier-II cities without ascertaining the marketability of these facilities in these areas", it said.