In June 2011, GSPC awarded the contract for Submarine Pipe line Project (SPP) connecting the Well Head Off shore Platform (WHP) with the On Shore Gas Processing plant (OGP) to Punj Lloyd Limited at a lump sum price of USD 95.314 million (or close to Rs 600 crore roughly) plus Rs 400.479 crore. However, in view of stoppage of work owing to non-availability of forest clearance along with other factors like fishermen agitation and heavy rains from September 2011 onwards, Punj Lloyd claimed standby charges from GSPC.
"Had GSPC done due diligence and applied in time for forest and wild life clearance, the incidence of standby charges would have been avoided/minimised on this account as pipeline work was awarded only in June 2011. Thus, payment of Rs 442.20 crore and a future liability of Rs 99.48 crore was avoidable," CAG observed.
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The report also found that the Forest and Environment Department of Government of Gujarat had made incorrect classification of forest land leading to short recovery of net present value (NPV) of Rs 58.64 crore from Mundra Port and Special Economic Zone Limited.
"Reckoning the classifications of forests given in the Champion and Seth's book 'Forest Types of India', the coastal belt of Mundra including the diverted forest land falls under Eco-Class-II-Littoral and Swamp Forests. Therefore, diverted forest land should have been classified as Eco-Class-II, for which net present value (NPV) was of Rs 7.30 lakh per hectare. Thus, the incorrect classification of forest land under Eco-Class-IV instead of Eco-Class-II resulted in short recovery of NPV of Rs 58.64 crore from the user agency," CAG report maintained.
While Gujarat State Road Development Corporation Ltd was reported to have incorrectly calculated value of work done leading to excess payments of price variation of Rs 4.76 crore to contractors during January 2011 to March 2014, the Naini Coal Company Ltd. was pulled up for contravening the terms of allotment which resulted in de-allocation of the allocated mine and invocation of performance guarantee of Rs 16.25 crore in January 2013.
The Gujarat government was also found to have meted out different treatment to two companies resulting in non-levy of occupancy price or Rs 130.11 crore, which could have otherwise been avoided had the land been given on one time occupancy price.
"In the case of Solaris ChemTech Ltd., the government land was granted for installation of plant and machinery on recovery of one-time occupancy price, while in other two similar cases, it was granted on lease at the rate of Rs 150 per hectare per annum applicable to salt and bromine, though in these cases, the land was leased for construction/installation of plant and machinery. The different treatment given to two companies resulted in non-levy of occupancy price or Rs 130.11 crore had the land been given on one time occupancy price," according to the CAG report.
On the other hand, "in case of allotment of government land measuring 2.7 million square metres of Suva village in Bharuch district's Vagra taluka to SRF Ltd for industrial purpose, there was 'short levy of additional occupancy price for Gaucher (grazing) land to the tune of Rs 11.34 crore", the report observed.
In terms of the state's finances, the CAG report observed that in 2013-14, Gujarat saw a decline in its revenue surplus of Rs 4717 crore by Rs 853 crore over the previous year. "The decrease in the revenue surplus during the current year was mainly on account of an increase of only Rs 4747 crore (6.31 per cent) in revenue receipts against an increase of Rs 5601 crore (8.04 per cent) in revenue expenditure over the previous year," the report stated. On the other hand, the state's fiscal deficit increased by Rs 1930 crore in 2013-14 over previous year on account of increase of Rs 1450 crore (6.83 per cent) in capital expenditure, the report further stated.
Among other things, Gujarat State Child Protection Policy (GSCPS) was found to have not formulated the State Child Protection Policy and State Plan of Action, as a result of which the state government "failed in setting goals and prinicples, and articulating responsibility and accountability of the concerned Departments for child protections and welfare services".
Moreover, the trend of overall sex ratio of Gujarat had declined (from 920 in 2001 to 919 in 2011) though all-India ratio had improved (from 933 to 943) during the same period, according to the 2011 Census.
In the revenue sector, in 1,082 cases, though inter-state sales were not supported by statutory declaration forms, tax was paid by the dealer at concessional rate resulting in short levy of tax of Rs 277.62 crore.
In 14 cases, there was short levy of VAT/CST of Rs 15.98 crore due to underassessment or turnover escaping assessment.