CAG poser on Baddi Trade Centre

Ambika Sharma

Tribune News Service

Solan, April 24

The Comptroller and Auditor General (CAG) has raised serious objections on the unfruitful expenditure incurred on the construction of Baddi Trade Centre where Rs 8.94 crore were spent by the previous Congress government.

The centre has failed to find any use and is lying vacant ever since it was handed over to the Industries Department in June 2016. It was inaugurated by the former Chief Minister in March 2016 and it was set up on 35 bigha land.

It was a perfect case of wasteful expenditure incurred by the state government where accountability of no official has been fixed.

The Government of India had sanctioned grant-in-aid of Rs 5.40 crore under the Assistance to States for Developing Export Infrastructure and Allied Activities for the year 2008-2009 to provide infrastructure for export promotion.

The estimated cost of the project was Rs 10.81 crore and Rs 5.40 crore was granted as grant in-aid by the Government of India. The state government had extended its share of Rs 3.20 crore and Rs 2.21 crore were supposed to pooled by the Baddi Barotiwala Nalagarh Industries Association. The estimated cost of the project was revised in April 2014 to Rs 21.62 crore considering the proposed furnishing of the proposed building. Additional funds to the tune of Rs 10.81 lakh were supposed to be raised through term loan from financial institutions.

The civil work was completed in February 2015 and an expenditure of Rs 8.94 crore was incurred on its construction. The term loan could not be raised from the financial institutions as was decided earlier. Nor was any additional grant sanctioned by the state government. The industry association pooled in only Rs 10 lakh as against their share of Rs 2.21 crore and the state exchequer unduly burdened on this account.

Later a society, Baddi Heights, comprising 100 corporate founder members, was constituted to run the centre as a society and Memorandum of Understanding was chalked out in January 2013 between the society and the BBN Development Authority. The centre was later handed over to the Industries Department in June 2016 as the society could not take over the centre as it was unfurnished. CAG pointed out that due to lapse on part of the authority in incurring expenditure on the centre without determining and arranging funds for the entire project, the objective of this centre could not be achieved and Rs 8.94 crore incurred on it could not be put to use.

It was dissatisfied with the reply of the authority that the governing body of the authority had approved to run the centre a society but the society did not take over the centre as it was not furnished.

Rs 8.94 cr unfruitful expenditure 

• The centre has been lying vacant since June 2016. 
• Inaugurated by the former CM, the Rs 8.94-crore centre was set up on 35 bighas.
• It was a perfect case of wasteful expenditure where accountability of no official has been fixed.

Cracks in building

With cracks appearing in the building even before it could be put to any use, its substandard construction too has come under the scanner.