This Report contains three chapters. The first chapter is an introductory chapter outlining the audit scope, mandate and the significant audit findings. The second chapter contains the performance audit of Implementation of National Horticulture Mission in Tamil Nadu. The third chapter contains eight audit paragraphs based on audit findings from compliance audit.
The audit findings are given below:
Performance Audit of Implementation of National Horticulture Mission in Tamil Nadu
- Tamil Nadu Horticulture Development Agency failed to prepare State Horticulture Mission Document to determine the potentiality of horticulture in the State. Annual Action Plan was prepared without baseline survey, finalisation of detailed project proposals was delayed and there was absence of sub-plan for the component area expansion. All these resulted in deferment of six sanctioned projects for ` 11.47 crore and non-availing of GOI sanction of ` 34.33 crore for 26 projects indicating inadequate planning in the development of horticulture sector.
- Imprudent financial management resulted in blocking of funds of ` 4.35 crore and
non-utilisation of the released funds of ` 32.37 crore. There was delay in release of received Central funds and State funds by Government of Tamil Nadu resulting in delayed achievement of the envisaged objectives.
- Absence of effective maintenance of new plantations in the subsequent years despite incurring of ` 36.15 crore, and delayed or under completion of projects resulted in non-achievement of the objective of enhancement of production of horticultural crops. Short allocation of sanctioned funds to the schemes for the benefit of deprived sections of society resulted in non-generation of income and provision of social security.
- Lack of concurrent evaluation of projects and deficiencies in the monitoring of the programme indicated weak internal control.
Management of Co-operative Sugar Mills in Tamil Nadu
- Commissioner of Sugar failed to consider the earlier years’ productivity while fixing the targets for cane crushing due to faulty planning.
- The Co-operative Sugar Mills suffered losses of ` 1,095 crore during 2013-14 to 2015-16, due to high cost of production, coupled with interest burden of ` 963.73 crore on the borrowings, due to which CSMs became financially weak.
- The objective of nursery programme to ensure the development of quality seeds for bulk plantations was not fulfilled, which impacted the optimum sugarcane production for crushing by CSMs.
- Utlilisation of over-aged cane for crushing, non-adherence to prescribed norms in production activities and delay in completion of diversification and modernisation programme impacted the effective sugar recovery and resulted in revenue loss of ` 33.49 crore and excess expenditure of ` 47.98 crore.
- Due to lack of proper monitoring, above deficiencies were yet to be corrected. Some deficiencies continued to exist despite being pointed out in the CAG’s Audit Report for the year 2008-09.
Audit of transactions of various Departments of Government and field offices revealed additional expenditure, avoidable expenditure and blocking of funds as detailed below:
- Non-adherence to guidelines in preparation of estimates for execution of road works resulted in non-utilisation of Government of India grant of ` 1.40 crore besides additional burden to the State exchequer.
- Delay in according Revised Administrative Sanction resulted in avoidable expenditure of ` 1.79 crore in the construction of High Level Bridge across Palar River.
- Duplication in selection of blocks, absence of weather forecasting data and availability of incomplete and unreliable weather data in the server resulted in avoidable extra expenditure of ` 1.42 crore and blocking of funds of ` 1.03 crore besides non-achievement of the envisaged objective.
- Non-adherence of GOI instructions and construction of godowns without adequate height and absence of three phase power supply to operate Seed Processing Units resulted in non-availing of GOI grant of ` 8.60 crore and blocking of funds of ` 4.66 crore, besides
non-achievement of the envisaged objective.
Non-adherence to the Standard Schedule of Rates to determine the quantity of materials for the construction of spurs led to additional expenditure of ` 2.38 crore.