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CAG raps HSIIDC for not utilizing acquired land worth Rs 4,488 crore

Press Trust of India  |  Chandigarh 

The State Industrial and has been rapped by CAG for not utilizing acquired land worth about Rs 4,488 crore and failing to boost micro, small and medium enterprises.

A report on public sector undertakings for the year 2016-17 was tabled in state Assembly today.

According to the findings of the on 'Acquisition of Land, Development of Industrial Estates and their Management' by HSIIDC, the company, which is the nodal agency for development of infrastructure and industrialization in the state, has not prepared any perspective plan for acquisition and development of land for balanced industrial development is the state.

The Comptroller and General of report also observed that failed to boost the micro, small and medium enterprises sector as per the requirements of the industrial policy.

"Land measuring 7,542.76 acres valuing Rs 4,488.86 crore acquired between January 2006 and April 2013 has not yet been taken up for development of Industrial Estates," as per CAG report.

The land so acquired by was for several purposes including development of phase V of Industrial model township in Manesar, setting up of SEZ at Gurgaon, 2100 MW gas based power plant at Bahadurgarh and industrial township in Sonipat.

In the report, the also found that the company acquired 26,796 acres of land till March 2017 and out of which, 24,760 acres fall in the

"Out of the land acquired in NCR, as much as 7,542.76 acres has not been taken up for development," it noted while observing that inadequate coupled with implementation issues resulted in poor implementation of industrial policy which failed to give boost to MSMEs.

As per report, the company also incurred extra expenditure of Rs 742.92 crore and Rs 112.61 crore in acquisition of land due to delay in filling of appeals in court and application of incorrect rates, respectively, it said.

There was also delay in execution of development works and against the leviable Liquidated Damages (LD) of Rs 19.34 crore, the company levied LD of Rs 5.86 crore only, leaving a shortfall of Rs 13.48 crore, report said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 14 2018. 17:40 IST