CAG raps GSIDC over land allotment to SEZs

NT NETWORK
Posted on 2009-03-26
PANAJI-The land allotment to Special Economic Zones or SEZs, by the Goa State Industrial Development Corporation (GSIDC), has been sharply criticised by the Comptroller and Auditor General (CAG), with its report picking holes in the process itself, besides stating that many of the steps taken during allotment were not in accordance with the procedures, while others had caused financial losses to the state. The report was tabled in the just concluded assembly session.
The CAG report accused the corporation of allotting land even before the state government had formulated a policy in this regard and castigated the corporation’s allotment process itself, pointing out that the corporation had not publicised its intention to allot land to the SEZs, and the allotments were not based on any selection process so ‘the selection of allotees lacked transparency.’
It also concluded that the corporation deviated from it ‘established role’ of developing and allotting land directly to entrepreneurs. The report lambasted the corporation for allotting the 24.05 lakh sq mt of land at Verna that was acquired for the promotion of small and medium scale industries in backward areas, under the Industrial Growth Scheme of the Union government and for which an assistance of Rs 10 crore had been received and allotting it 5 companies to form SEZs.
Pointing out that the corporation had executed lease deeds with four SEZs allotees for more area than approved by the Board of Approval or BOA, it criticised the decision to keep Annual Lease Rent (ALR), static for the lease period of thirty years, saying that it “was an undue concession made to SEZ allottees.”
The allotment of land touching the land initially allotted to the four SEZs at a lesser rate has resulted in a loss of Rs 39.47 crore, alleged the CAG.
The inclusion of an area of 5.28 lakh sq mt itself over the approved and allotted area was irregular and the unauthorised inclusion of this additional land was “undue favour to these companies…,” said the highly critical CAG report.
It also pulled up the corporation for allotting 75, 457 sq mt of land in Verna to CIPLA at a premium of Rs 2.08 crore, when it should not have been computed at this rate as the company had not complied with the pre-requisition agreement and deposit of cost of acquisition as formulated by the corporation for
special acquisition.