UPSIDC fails to achieve target: CAG report

The UP State Industrial Development Corporation (UPSIDC) failed to achieve its target of allotment of developed land as a result of which 1,092.65 acres of developed land valued at Rs 814.14 crore remained unallotted, the CAG has said in its audit report.

In its 'Performance Audit of Development of Industrial Areas by Infrastructure and Industrial Development Department', the Comptroller and Auditor General also noted that 1,846.13 acres of allotted land worth Rs 1,098.16 crore remained unutilised due to allottee units being sick or closed as of March 31, 2015.

In its latest report tabled in the state Assembly, the CAG noted that during 2012-13 to 2014-15, the UPSIDC developed only 190 acres of land against the target of 1,662 acres of land resulting in a shortfall by 88.57%.

The report said the UPSIDC incurred an expenditure of Rs 27.93 crore during 2012-13 to 2014-15 on maintenance and upgrading work in industrial areas which was not permissible as per Operating Manual.

The UPSIDC dropped many land acquisition proposals resulting in loss on account of deduction of acquisition charges amounting to Rs 10.11 crore and blockage of funds of Rs 38.24 crore in 21 out of 51 dropped cases examined by the audit.

The report said the Lucknow Industrial Development Authority (LIDA) could not finalise its master plan for development of notified areas even after lapse of 10 years of its constitution.

LIDA fixed the target for acquisition, development and allotment of 1,812 acres of land, 80 acres of land and 240 acres of land respectively during the last three years ending March 2015. Against this, LIDA did not acquire and develop any land and allotted only 25 acres.
 

The CAG noted that due to improper persuasion of land acquisition proceedings by the Gorakhpur Industrial Development Authority (GIDA), Rs 22.64 crore remained blocked with the Special Land Acquisition Officer.

GIDA did not prepare the Plan Regulations for development of notified areas even after 26 years of its constitution, it said.

The report also said the Infrastructure and Industrial Development Department failed to approve the regulations prepared by the authorities in pursuance of the Uttar Pradesh Industrial Area Development Act, 1976, as of March 31, 2015.

"Therefore, these authorities were managing their affairs without approved regulations," the report said.

It said the department failed to put in place a monitoring mechanism in pursuance of the Act. It neither prescribed any periodical reports or returns or accounts to be submitted by the authorities nor ensured proper implementation of the master plan or development plan by the authorities or UPSIDC.

It also said that the process of assessment of genuine requirement of coal of micro, small and medium enterprises (MSMEs), as envisaged in the New Coal Distribution Policy, was deficient as neither complete and reliable data of registered coal user MSMEs was available nor the functioning of the committees was proper.

Due to delay in execution of fuel supply agreements and non-submission of coal lifting programme to coal companies, UPSIDC failed to lift 37.58% of contracted quantity of coal under fuel supply agreements executed during 2009-10 to 2014-15, the report added.