645 cr sanctioned for security apparatus in J&K, Rs 354 cr stands unutilised: CAG

Under the Prime Minister’s Development Package (PMDP), the Central Government has sanctioned over Rs 654 crores for high-end security and to maintain the law and order system in Jammu & Kashmir, out of which over Rs 354 crores remain un-utilized.

As per the report of the Comptroller and Auditor General (CAG) of India, PMDP has included 63 projects with a total outlay of Rs 80,068 crores under five sectors and a total amount of Rs 11,100.28 crores was released and an expenditure of Rs 9,282.84 crores was incurred, till March 2019 in relation to 39 projects.

In addition to this, one more project was also approved in October 2017 by the Ministry of Home Affairs (MHA) under the PMDP at a cost of Rs 500 crores.

The project was approved with a view to enabling the Jammu & Kashmir Police to respond promptly to various law and order situations, counter-insurgency operations and handling of law and order through the use of the latest technology and non-lethal equipment without damage to life and property.

However, as per the CAG report on PMDP for the year ended 31 March 2019, a copy of which was in possession of , the reports reads, “Procurement of non-proprietary Medium Bullet Proof Vehicles (MBPVs) stated to be proprietary, despite the urgency projected, with delays from two manufacturers at different and higher rates, resulted in additional expenditure of Rs 9.20 crores and non-procurement of the required number of vehicles sanctioned”.

Moreover, the project was scheduled to be completed by March 2020 and the salient features of the project were to establish integrated command centres involving two central command centres one each in Srinagar and Jammu, district command centres and Closed Circuit Television (CCTV) surveillance system for the National Highway from Lakhanpur to Srinagar.

The project also had the provision to provide CCTV cameras, IP based Video Surveillance System, Electric Boom Barriers, Hydraulic cranes, Bullet Resistant Jackets, Deep Search Metal Detectors etc.

Further to provide specially designed anti-riot vehicles, helmets, gas masks, group shield specially for women protection units, Bullet Proof (BP) Bunker Vehicle18, wireless communication centre for better communication and law and order situation.

The reporter further reads, “Initially expenditure is incurred from State Funds and after the claim for reimbursement is lodged with MHA through the Finance Department, GoJ&K, the GoI releases funds to the State Government through Security Related Expenditure (SRE) mechanism for reimbursement of the entire cost of the project”.

As per the CAG, for the year 2016-17, over Rs 18.30 crores was released by the GoI, out of which Rs 15.53 crores were incurred and Rs 2.77 crores were unutilized. In the year 2017-18, over Rs 311.69 crores were released, out of which Rs 157.35 crores were incurred and Rs 157. 35 crores remained unutilised.

“In the year, 2018-19, over Rs 171.87 crores were released by the GOI, out of which Rs 92.09 crores were incurred and over Rs 79.78 crores remained unutilized. During the period from 2016 to 2019, the J&K Government released Rs 501.86 crores out of which an expenditure of Rs 261.96 crores (52 per cent) was incurred by the Department”, it added.

“The percentage of expenditure vis-a-vis funds available during the period ranged between 50 and 85 respectively. The unspent balances increased from Rs 2.77 crores as of April 2017 to 79.78 crores at the close of March 2019. Further, during the year 2019-20, an amount of 119 crores was sanctioned by the GoI under the project and an expenditure of Rs 29.77 crores had been incurred by the Department, leaving a balance of Rs 89.23 crores unutilised as of 31 March 2020”, the CAG report reads.

During the year 2020-21 (up to August 2020), an amount of Rs 25.15 crores was released by the GoI against which no expenditure had been incurred (August 2020), it added.

Regarding the Procurement of equipment, the CAG reports reads, “Under the project 56 items and works were to be procured and installed out of which procurement and installation of 33 items and works (59 per cent) were completed by the Department as of August 2020”.

The integrated command centres and its linked components had not been taken up for execution as of 31 August 2020, it added.

“Procurement of 413 CCTVs for Police Stations was under tendering process (August 2020). 669 vehicles of various types (Bulletproof Bunkers, Rakshak vehicles, Gypsy, Anti-Riot vehicles, Hydraulic crane, JCB, Tractor) were sanctioned, 547 vehicles had been procured of which 499 vehicles had been delivered as of August 2020”, the CAG report reads.

Regarding the Purchases without tendering, the reports stated Rule 8.4 of the Jammu & Kashmir Financial Code, which provides that purchase of stores should be made in the most economical manner and in accordance with definite requirements of public service.

“GoI provides that procurement from a single source may be resorted to If it is in the knowledge of the user department that only a particular firm is the manufacturer of the required goods. In case of emergency, the required goods are necessary to be purchased from a particular source and the reason for such decision is to be recorded and approval of competent authority obtained”, it added.

“Purchases worth Rs 100.27 crores, which included vehicles, body protectors, Bulletproof Patkas19, Anti-Riot Vehicles, Farm Track Tractor and Backhoe Loader were made by the Police Headquarter (PHQ), J&K either on repeat order basis or from original manufacturers, without ascertaining reasonability of rates by way of inviting tenders etc”, it added.

“After the matter was referred (June 2020) to the Government, the department in reply stated (August 2020) that the PHQ, J&K purchased Bullet Resistant vehicles directly from original manufacturers/ authorised dealers, as a proprietary item to meet the urgent requirement of J&K Police for anti-militancy operations and law and order duties in view of prevailing security scenario after approval of the State Level Purchase Committee (SLPC)”, the CAG report reads.

It was also stated that vehicles and other items were purchased by the J&K Police from original manufacturers on the lowest company rates applicable to Government Departments as proprietary items and the vehicles were not available on GeM, it added.

“The reply is not tenable in view of the fact that similar machinery and equipment and bulletproof vehicles were manufactured by several firms and that reasonability of rates even from authorised dealers and firms was not ensured by the department”, the reports added.

Purchases from specific firms the CAG reports read, “Audit scrutiny of records revealed that the department had made purchases from particular firms and single source, which resulted in avoidable expenditure of Rs 9.20 crores”.