CAG report points violation of guidelines, grant of assistance to some ineligible beneficiaries under MSME Schemes

Ahmedabad, Apr 1 (KNN) In the review of interest subsidy under MSME scheme in the state, the Comptroller and Auditor General of India (CAG) report on economic sector revealed violation of scheme guidelines, grant of assistance to some ineligible beneficiaries and delay in processing of applications/claims and double payments.

CAG report pointed inefficient monitoring of critical infrastructure project scheme (CIPS) and interest subsidy under MSME scheme by state industries department and mines department.

Review of interest subsidy under MSME scheme revealed violation of scheme guidelines, grant of assistance of Rs. 7.60 crore to ineligible beneficiaries, delay in processing of applications/claims and double payments.

The auditor recommended effective monitoring system at by IC and DICs to prevent excess grant of assistance as well as excess subsidy to beneficiaries.

Further, the report pointed lack of proper monitoring resulted into extra assistance of Rs. 173.15 crore to project implementing agencies (PIAs).

"A review of the assistance for CIPS revealed extra assistance of Rs 12.35 crore due to splitting up of contract and excess assistance of Rs 44.88 crore given to three PIAs in violation of guidelines. The absence of monitoring by industries commissioner resulted in release of excess grant of Rs. 115.92 crore to GIDC," CAG noted in its report on economic sector.