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Kohima, Aug. 19 (EMN): Two stone crushers, which were awarded to two individuals for implementation under the Local Area Development Project (LADP) meant for generating employment, were found non-functional for the last few years. Ironically, it was observed that the machines were purchased ‘second-hand’ and parts of the machinery were rusted.
This was stated in the Public Accounts Committee (2020-2021) report, copies of which were presented to the house during the sixth session of the 13th NLA, held on August 13. The PAC (2020-21), is the 120th report on the examination of the report of the Comptroller and Auditor General of India for the year 2012-2013 on the state finances audit report and audit report on social, economic, revenue and general sectors, which was adopted by the committee on July 7, 2020.
Out of 26 individual-based schemes in two districts, three stone crusher projects were awarded to three individuals in two districts with a view to improve employment generation in rural area, the report stated.
During the joint physical verification of those three projects, it was noticed that two stone crushers were not operational since the last few years, the report stated.
An amount of INR 8 lakh was granted to one Adivile, in 14-Southern Angami Assembly Constituency under Kohima district, to purchase stone crusher under individual based scheme during 2009-10. However, during the joint physical verification to the project in May 2013, it was noticed that the unit stopped functioning since the last three years. It was observed that the financial benefit to generate employment through an individual based scheme could not be achieved due to closure of unit.
Also during 2008-09, an amount of INR 5 lakh was granted to Thepfizhale Mera from the same constituency to purchase stone crusher under the scheme and the verification committee certified the utilisation of project funds for purchase of crusher, the PAC stated.
However, during joint physical verification (May 2013) of the project, it was noticed that the unit was not operational since last eight years which was authenticated by the DPO, Kohima. The team observed that all the machine parts were rusted.
“Thus, the financial assistance granted out of individual based scheme was not actually invested to generate self or group employment as per the status of the unit,” the report stated.
The DPO, Kohima, admitted the facts that second hand machines were purchased instead of new machines due to insufficient funds allocated out of the LADP funds and assured that the beneficiaries would revamp the units at the earliest.
In an audit query, the department was asked as to what measures have been taken to revamp the units. Accordingly, the DC Kohima, in his written reply, stated that the machine broke down due to mechanical defects.
However, the machines have been repaired and is now running successfully.
During the oral evidence, the department told the committee that the matter reported by audit was regarding the two stone crushers supported under LADP during 2009-10. It informed the committee that verification was done, adding that the machines have been repaired which are now running successfully.
However, the committee, in its recommendation, stated that it was not satisfied with the department’s reply as it observed that an amount of INR 8 lakh was granted to Adivile, and INR 5 lakh to Thepfizhale Mera to purchase stone crusher under individual based scheme during 2009-10 and during 2008- 09 respectively.
During spot verification by the audit committee (May 2013), it was found that both the machines were old and not operational for the last three years for Adivile and eight years for Thepfizhale Mera.
This hampered the financial assistance granted out of individual based scheme and could not actually invest to generate self or group employment.
It is also observed that the department had purchased second hand machine instead of a new machine, the report stated.
Therefore, the committee has recommended the department to update on the purchase of second hand machine within two months from the date of presentation of the report to the house, which is October 13, 2020.