The Gujarat Industrial Development Corporation (GIDC) has drawn flak from the Comptroller and Auditor General of India (CAG) for its performance in land development. In its audit observations for the year 2009-10, CAG has reported that the development of land did not commensurate with the acquired land even though funds were available with the corporation.
According to CAG, during last four years, since 2005-06 to 2008-09, the percentage of land developed to the total land available (with GIDC) was extremely poor and remained between 0.21 and 1.18 per cent. However, during year 2009-10 the percentage of land developed to total land available increased to 13.01 per cent mainly because of development works executed by the corporation in Savli and Dahej SEZs areas.
"The abnormally low percentage of developed land to the total land available during 2005 to 2010 was indicative of deficiency in planning for selection and acquisition of land," the report stated. During 2005 to 2010, the percentage of land developed to land acquired at the end of each year ranged between 0.21 per cent and 13.01 per cent.
CAG stated in its report that GIDC did not have any policy for selection of land for purchase/acquisition with reference to nature of industries and suitability for creation of infrastructure facilities. "The GIDC acquires both private and government lands for development of estates. During 2005-06 to 2009-10, the corporation acquired 7,642.63 hectares and developed 2,392.20 hectares. The land acquired and the development made at the end of each year for the period from 2005-06 to 2009-10," said the CAG report.
Moreover, in spite of a policy circular being issued in January 1980 on parameters for selection of land for setting up an estate, development works were delayed due to issues like delay in possession of land, pending fixation of price for government land, low demand in tribal areas and global industrial scenario discouraging the industries.
Apparently, GIDC did not prepare any detailed plan indicating the time schedule within which the developmental works in the estates were to be taken up and completed which had adverse effects on monitoring of execution of works.
"The corporation developed ceramic and glass special economic zone (SEZ), at Jhagadia without conducting any feasibility study, which led to its failure and blockage of funds spent on it. Further, out of the total plots allotted, 53 per cent of plots in Surat SEZ and 80 per cent of plots in Ahmedabad SEZ were lying unutilised by the allottees in absence of proper feasibility study," CAG reported.
On another front, GIDC and Government of Gujarat (GoG) had to also bear extra financial burden of Rs 118.47 crore and Rs 142.41 crore due to splitting up of same kind of works into smaller segments with the intention of passing on maximum financial assistance to Industrial Associations under critical infrastructure project (CIP).
According to CAG, GIDC sustained loss of Rs 14.94 crore in two cases in absence of the enabling clause in land allotment agreement for recovery of compensation awarded by the court under Land Reference Cases.
There were instances of huge revenue loss to the GIDC on account of erroneous fixation and abnormal delays in revision of premium price (PP).
The GIDC suffered a huge revenue loss of Rs 44.85 crore due to various kinds of irregularities in allotment and transfer of plots namely incorrect or non charging of applicable premium price of Rs 31.61 crore, allotment of plots at concessional PP to ineligible allottee at Rs 8.46 crore, non recovery of transfer fee at Rs 1.11 crore and allotment of plots at lesser premium price of Rs 3.67 crore.
