Unending NATRiP project due to mismanagement: Par Panel

A Parliamentary committee today expressed concern over the "unending continuation" of Department of Heavy Industries' (DHI) flagship project NATRiP, saying it indicates "mismanagement and and lack of oversight".
The Department-Related Parliamentary Standing Committee on Industry, chaired by K C Tyagi, expressed concern over the fact that a project which has already seen three extensions is looking for further extension.
"In the view of the committee, this unending continuation of the flagship project of DHI, which was originally intended to be time-bound, is a pointer to mismanagement along with lack of oversight and accordingly recommends that a performance audit of NATRiP with specific focus on lapses in project management shall be conducted," the panel noted in the report which was tabled in Parliament today.

Last year, the government had extended the timeline for completing the National Automotive Testing and R&D Infra Project (NATRIP) by three years.
NATRIP which plans creation of facilities at seven locations such as Ahmednagar, Silchar, Raebareli, Pune, Manesar, Chennai and Indore had faced hurdles at various stages of implementation on account of delays in acquisition of land, clearances and shifting of utilities besides, contractual complications and foreign exchange variation.
Further, the committee said it would have found it more appropriate if the government would have atleast by now decided the manner in which funds to NATRiP are to be provided, either as loan or as grants.

"Such uncertainties can affect the lucidity of the demand and the transparency with which allocations are made, it said.

The committee also noted the explanation given by the DHI on how it is to utilise the plan loan of Rs 300 crore allocated to the project during 2015-16 over a period of three years ending 2017-18.
"In this regard the committee recognises that this spread of expenditure warrants yet another extension of NATRiP beyond currently extendable period up to December 2017," it said.
Terming the FAME-India scheme as one of the most forward looking schemes of the government in the face of heightened environmental concerns and depleting fossil fuel reserves, the panel pointed out complaints of shortage of funds.

"Though the scheme is picking up, the committee while examining the submissions of the department finds that in respect of R&D and creation of charging infrastructure there has already been complaints of shortage of funds extending up to Rs 25.63 crore and Rs 87 crore, respectively," it said.
The committee would want the department to submit the reasons for the said shortages and the curative action plan, it added.
Further, the panel while examining demands of Department
of Heavy Industries felt that there was a need for more impetus on R&D, specifically related to the development of original technology in the field of electrical vehicles.

"The committee also feels that DHI should draw a roadmap with the help of industry experts in the field of electrical vehicles with a definite time-frame so that the objectives set up by the DHI are achieved to justify the money spent and also to reduce the emission of carbon in the environment," it said.
The committee asked the auto industry to start looking for export markets in the face of saturating, domestic arena while formulating business expansion plans.
"Also they should earnestly try and develop indigenous technology in the field of electric vehicles," the panel said.
Calling the creation of different heads for allocation and expenditure of funds under a single umbrella scheme ironical, the panel said it is against the government vision of simplification of procedures.

"It is not ironical that while on the one hand the government is moving towards integration of of small schemes under larger umbrella schemes for the benefit of simplification of procedure and facilitating financial flexibility, on the other hand it is complicating matters by adding more heads for allocations and expenditure of funds under a single umbrella scheme," it noted.