CAG flags infructuous expenditure, idle tourism assets under Swadesh Darshan

GANGTOK, : The Comptroller & Auditor General (CAG) of India has stated that there was an infructuous expenditure of Rs. 17.68 crore and idling of tourism assets valuing Rs. 18.98 crore under the Tourism department. These tourism-related projects were undertaken by the department under the Swadesh Darshan, a flagship mission of the Tourism Ministry launched in January 2015.

The audit covered a period of seven years from 2014-15 to 2022-23.

As per the CAG report, the Tourism department carried out 127 works under 35 selected components. Out of these 127 assets, only 19 assets are being utilised for the purposes for which they were created and 77 were lying unutilised till the date of audit and 31 were being used for other unintended purposes.

In other words, only 19 assets had been leased out till the date of audit (April 2024) and 31 of them were constructed within the premises of monasteries / temples which were handed over to the concerned monasteries / temples.

The reasons for non-utilisation of completed projects were attributed to non-availability of suitable bidders at the base price.

The CAG stated that the Tourism department focused only on construction of these assets as it had not initiated necessary steps to make these assets operational. As a result, the objectives of generating revenue, employment and promotion of the tourism in the identified circuit remain unutilised.

“Thus, due to improper utilisation or non-utilisation, the assets created could not generate revenue or promote culture & heritage of the State as envisaged under the scheme. This led to infructuous expenditure of Rs 17.68 crore and idling of assets valuing Rs 18.98 crore,” said the CAG.

In reply, though, the department stated (March 2024) that all the assets created are leased out to private parties or handed over to the monasteries and are now actively serving the tourists and earning revenue to the government.

However, supporting documents for evidencing the leased out property of only 19 assets were furnished to audit, the CAG noted.

During a joint physical verification of the tourism works (January & December 2022), the CAG found shops lying idle at Directorate of Handicraft & Handloom, Gangtok.

The craft haats, toilet blocks and car parks were sanctioned at a cost of Rs. 4.38 crore. The works were completed in August 2018 and handed over to the directorate in March 2019. The building had 27 shops which were lying idle as of the date of audit (June 2023).

Similarly, there was a Swadesh Darshan project allocated for Rhenock-Aritar-Rhenock circuit which included a flower exhibition cum interpretation centre at Lungchuk. The centre was constructed at a total cost of Rs. 3.35 crore and completed in June 2019.

During physical verification on 01.01.2022 at Lunchok it was found that the Interpretation Centre was lying idle and terracing and land development done for flower cultivation work was in dilapidated condition as it was covered with wild grass.

Similarly, the International Standard Zip line at Hattipalley was completed at a

total cost of Rs 0.35 crore. However, even after more than one year of completion, the zipline was not leased out for operation.

The Swadesh Darshan (I & II) scheme aimed to develop tourist circuits and promote the cultural and heritage value of the country, besides generating livelihood opportunities through active involvement of the local communities.

The tourist circuits/destinations were to be identified by MoT in consultation with the stakeholders and States based on a pre-dominant tourism theme, considering factors such as current tourist traffic, connectivity potential and significance attached to the sites, holistic tourist experience etc.

However, audit observed that the DPR prepared by the department did not have any reference to such consultations, indicating absence of the same. Neither was the basis for selection of projects/components specified in the Cabinet Memos nor did the department conduct any feasibility study before implementing the scheme.

Such deficiencies in planning affected the overall execution and implementation of the projects as audit noticed numerous cases of delay in completion of the projects, non-utilisation of infrastructure, improper utilisation of infrastructure.

In reply, the Tourism department stated (March 2024) that meetings were held at different occasions with both internally as well as with various stakeholders to discuss and identify the requirements of tourism facilities along with tourist circuit to be undertaken under Swadesh Darshan schemes. However, minutes of these meeting could not be traced.

The reply of the department was not acceptable as department had neither produced any document in support of holding of meetings with stakeholders nor was any reference made in the DPR regarding consultation with various stakeholders, said the CAG.