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APIIC indicted for incorrect land allotment

HYDERABAD: The Comptroller and Auditor General (CAG) has indicted the A. P. Industrial Infrastructure Corporation (APIIC) for incorrect allotment of lands to various industrial and information technology firms that resulted in a revenue loss of Rs. 308 crore to the Government and “undue benefit” of an equivalent amount to these companies.

In its 212-page commercial report tabled in the Assembly on Friday, the CAG said that this revenue drain occurred through the APIIC.

The CAG report also found fault with the APIIC for allotment of 1,000 acres of land on lease at a nominal rate of Re 1 per acre to Brandix India Apparel City Pvt. Ltd at Visakhapatnam whereas the Bhabha Atomic Research Centre (BARC) was allotted undeveloped land of 2,089 acres for Rs. 96.53 crore.

It detected irregularities in the allotment of leases for mining ‘black galaxy’, a one of its kind granite in the world, at Chimakurthi in Prakasam district. The A. P. Mineral Development Corporation thus lost an opportunity to earn potential revenue of Rs. 124.47 crore and the Government seignorage charges of Rs. 51.85 crore, the CAG report said.

In its report on local bodies, the CAG noted that the transfer of functions and funds to local bodies was “only partial” as against the Government’s promise to transfer 17 (out of 29) functions.

Huge funds were released to A.P. Urban Infrastructure Development Corporation “without correlation to expenditure”.

The CAG observed that the A.P. Mineral Development Corporation lost a potential margin of Rs 16 crore as it failed to follow the grade-wise excavation plan. Contractors, in contrast, were assured of a benefit of Rs 1.42 crore.

The CAG summed up that 10 PSUs earned a profit Rs 443 crore for 2006-07 while three others accumulated loss to the tune of Rs 1,208 crore.

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