A comprehensive performance audit by the Comptroller and Auditor General (CAG) has brought to light significant inefficiencies in the execution of rural infrastructure projects funded by the National Bank for Agriculture and Rural Development (NABARD) in Jammu and Kashmir. The audit, covering the period from April 2018 to March 2023, revealed that a mere 12 percent of the projects scheduled for completion had actually been finished, with a substantial Rs 461.67 crore of released funds remaining unutilised. This underperformance has hampered the intended objectives of improving irrigation, flood management, drinking water supply, and rural road connectivity.
Information reaching Tahir Rihat suggests that the audit examined the project selection and implementation processes undertaken by the Public Works and Jal Shakti Departments. Against a total loan assistance of Rs 3,900 crore consented by the Centre under the Rural Infrastructure Development Fund (RIDF), Jammu and Kashmir had only availed Rs 2,316.37 crore. More critically, out of Rs 844.17 crore that was released between 2018 and 2023, a staggering Rs 461.67 crore was left unused. The CAG’s findings indicate that NABARD disbursements frequently fell short of sanctioned loan amounts, ranging from 28 percent to 84 percent across different tranches. This shortfall was primarily attributed to the slow pace of work on the ground. In numerous instances, sanctioned loans reportedly lapsed entirely due to the failure to adhere to prescribed project timelines.
The audit also identified critical lapses on the part of the Finance Department in managing crucial mobilisation advances. These included undue delays in releasing these advances to the implementing departments, complete non-release in certain cases, and even excess disbursements in others. Furthermore, the report highlighted instances where executing agencies failed to utilise the mobilisation advances they received, collectively impacting the cash flow and impeding the timely execution of projects. The CAG’s report explicitly noted that these deficiencies had an adverse effect on the financial momentum and the prompt completion of the development initiatives.
Weaknesses in project planning and prioritisation were also a recurring theme in the CAG’s assessment across various departments. The audit found that essential baseline data and State/UT-level planning frameworks, which are mandated under NABARD guidelines, were either non-existent or were not effectively leveraged. A significant concern raised was the failure to ensure mandatory prerequisites before projects were sanctioned or commenced. These prerequisites included the availability of encumbrance-free land, necessary forest and statutory clearances, identification of viable water sources, and the preparation of technically sound Detailed Project Reports (DPRs). The absence of these fundamental assurances frequently led to projects being stalled, abandoned, or ultimately foreclosed.
Systemic deficiencies were further detailed in the report concerning project execution. These included protracted delays in the release of funds, a complete non-commencement of contracted works, instances of fund diversion and misutilisation, and the execution of projects without obtaining the requisite technical sanctions. The report also pointed to issues with defective DPRs, improper site selection, and inadequate contract management as contributing factors to the overall project delays and failures. The mechanisms for monitoring and inspecting project progress were also found to be wanting. Periodic field inspections were either not conducted at all or were inadequately documented, leaving a significant gap in oversight and accountability.
Consequently, by March 2023, only 32 out of the 263 projects that were due for completion had been successfully concluded, representing approximately 12 percent of the total. The remaining 231 projects were either still incomplete or had not even begun their execution. The audit further elaborated on the financial aspect, noting that against the total release of Rs 844.17 crore during the audit period, the actual expenditure amounted to only Rs 382.50 crore. This left a substantial 55 percent of the released funds unutilised, with yearly unspent amounts fluctuating significantly, ranging from a low of 4 percent to a high of 72 percent.
The CAG concluded that the overarching goals of the NABARD-funded projects, which aimed to enhance irrigation and flood management capabilities, ensure the supply of safe drinking water, and improve rural road connectivity, were not achieved within the timelines originally envisioned. To address these persistent issues, the CAG recommended a concerted effort to strengthen institutional planning processes, enforce greater financial discipline, improve inter-departmental coordination, enhance technical scrutiny of project proposals, and bolster monitoring mechanisms. These measures are deemed crucial to ensure the effective utilisation of NABARD assistance and to guarantee the timely delivery of tangible benefits to the people of Jammu and Kashmir.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.
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