The Comptroller and Auditor General of India (CAG) has made some serious observations pertaining to the capital city of Amaravati, asserting that unfruitful expenditure was incurred on the capital project and that the purpose of the Land Pooling Scheme (LPS) was not achieved.
The CAG, in its compliance report for the financial year ended in March, 2021, rapped both the previous and present State governments. The report was tabled in Andhra Pradesh State Assembly on September 25 (Monday).
The CAG rapped the successive State governments asserting that the land acquired through the Land Pooling Scheme (LPS) had been lying idle after spending ₹2,244.94 crore, and that the objective of the LPS was not achieved.
The CAG also posited that the change in policy resulted in uncertainty over 55 packages that are still open contracts and require ₹28,047.82 crore for completion.
It pointed out that the consultants for the preparation of the Master Plan were selected by the then Telugu Desam Party (TDP) government on a nomination basis rather than following the procedures.
‘Huge financial burden’
The recommendations of the Expert Committee were not considered and the Andhra Pradesh government opted to acquire 70% of the total land required for the capital city through land pooling mechanism, said the CAG said, adding that it ‘left (a) huge financial burden’ in the immediate and future periods.
The Andhra Pradesh Capital Region Development Authority (APCRDA) and Amaravati Development Corporation Limited (ADCL) got into contractual agreements for infrastructural packages for ₹33,476.23 crore ‘without firming up a financial plan’.
As against the requirement of ₹55,343 crore worked out for the period between 2016 and 2023, the APCRDA could raise only ₹11,487.16 crore from all sources, the CAG said.
‘Budgetary support not provided’
The budgetary support was not provided as per the financial plan brought out nor any effort was made after February 2019 by the YSR Congress Party (YSRCP) government.
Debt financing from the market is taken as the major resource for funding the development of the capital city. Against the planned mobilisation of ₹33,476.23 crore, the APCRDA borrowed ₹8,540.52 crore only.
“The change in policy on capital city development since May 2019 resulted in uncertainty over 55 packages that are still open contracts and require ₹28,047.82 crore for completion,” the CAG said.
Out of the proposed works on the development of LPS infrastructure worth ₹13,802,75 crore, only ₹183.04 crore was spent by September 2021. Only four of the 16 packages achieved physical progress of 10% to 18%. The remaining 12 packages were still in the preliminary stage.
Of the 19 packages of government buildings worth ₹6,848.58 crore, only two packages worth ₹526.74 crore were completed. The remaining 17 packages achieved a physical progress of zero to 95% after spending ₹1,505.22 crore. As all the packages have come to grinding halt since May 2019, it is doubtful if these packages would progress and the amount of ₹1,505.22 crore already spent on these packages, thus, became unfruitful, the CAG said.
Due to improper planning, the material procured for re-routing of 220 KV underground cables worth ₹208.67 crore was lying idle without any utilisation. Further, the expenditure of ₹60 crore incurred towards re-routing of 400 KV lines had become unfruitful due to stoppage of works, the CAG report said.
Action of the APCRDA to allow construction of grievance cell building (Praja Vedika) constructed during the TDP regime unauthorisedly within the waterbody against the laid rules and subsequent demolition of the building by the YSRCP government had resulted in waste of public money of ₹11.51 crore, the report added.
