Tabled in the state assembly on Friday, the report pointed out at inappropriate ways of functioning and non-utilisation of funds by the ITIs.
Despite being planned in year 2008, the upgradation of 250 ITIs is deficient with poor utilisation of funds where only Rs 167.27 crore have been spent in the last five to nine years as against Rs 625 crore received, the report stated.
"Also 56 ITIs sanctioned during 2007-12 incurred an expenditure of less than Rs 10 lakh up to June 2016 on upgradation," the report mentioned.
ITIs mainly work to provide skilled labour to the industry and upgradation of ITIs was planned in October 2007 to improve employment chances of graduates from vocational training system, making design and delivery of training more demand responsive.
"None of the 250 ITIs applied for accreditation from National Accreditation Board (NAB) for Education and Training, leading to non-affiliation of new trades proposed in IDPs of these institutes," the CAG stated.
The National Implementation Cell of the Government of India submitted a report in May 2013 pointing out that the upgradation suffered due to principals holding charge of more than one ITI, frequent transfers of principals and vacant posts of instructors, it said.
The shortfall of instructors was made up through contractual appointments, CAG has noted in its report.
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