CAG Flags Gaps in Jharkhand PSUs, Points to Delays and Idle Assets

Jharkhandinc Bureau

RANCHI, March 16: The Comptroller and Auditor General (CAG) of India has flagged structural and operational gaps in Jharkhand’s public sector undertakings (PSUs), pointing to delays in project execution, idle assets, and lapses in financial management, according to its report for the period ending March 2023.

The report was tabled in the Jharkhand Assembly on March 16.

An audit of the Jharkhand State Building Construction Corporation Limited (JSBCCL) showed that out of 1,328 projects worth more than Rs 14,000 crore undertaken since 2015, only about 55 percent have been completed. Several projects remain stalled, dropped, or at initial stages.

According to the report, the corporation did not prepare a corporate budget for several years and lacked a technical committee to assess project feasibility. In multiple cases, projects were taken up without detailed estimates, while issues such as land availability, delayed handover and contractor-related problems affected execution.

The audit also pointed to instances where completed assets remained unused. A degree college building constructed at a cost of about Rs 12 crore could not be utilised due to its proximity to a high-tension transmission line. Similarly, infrastructure created for Jharkhand Raksha Shakti University, involving expenditure of over Rs 12 crore, remains incomplete.

The report said some completed buildings were not handed over to user departments for extended periods, leading to deterioration and additional maintenance costs.

Delays in project completion were also observed across several works, resulting in cost escalations. In select cases, price adjustments led to additional expenditure of more than Rs 42 crore. The CAG noted that shortages of engineering staff affected supervision and monitoring.

In a separate audit of the Jharkhand State Food and Civil Supplies Corporation Limited (JSFCL), the report highlighted gaps in paddy procurement and delays in Minimum Support Price (MSP) payments to farmers.

Between 2018-19 and 2021-22, the state did not meet procurement targets, and payments to farmers were delayed in several cases. According to the report, dues amounting to Rs 8.64 crore remained unpaid to 1,741 farmers as of April 2023.

The audit also flagged financial irregularities in JSFCL. It noted that the corporation submitted different financial statements for the same year to different authorities, raising concerns over financial reporting practices. It also pointed to pending recoveries from millers and irregularities in institutional processes such as board meetings and account maintenance.

The CAG report further indicated issues in other sectors, including avoidable expenditure and delays in project implementation.

According to the audit findings, the issues observed across PSUs point to gaps in planning, coordination and oversight in the implementation of public sector projects in the state.