Goa’s tool room project at Rs 4.5 cr cost lies dormant for 6 years: CAG Report

New Delhi, Aug 8 (KNN) The Goa government tool room project that was set up at a cost of Rs 4.5 crore has been lying dormant for almost 6 years because of non fulfillment of prescribed procedure, stated a Comptroller and General Auditor (CAG) report.

The CAG in its report said “the submission of proposal not as per prescribed procedure, non-compliance of deficiencies in the project report, release of state’s share even before its approval and non-procurement of machinery resulted in idle investment of Rs 4.52 crore for 6 years, December 2011 to December 2017.”

The project was one of the 15 tool rooms in India introduced by central government to improve the competitiveness of the micro, small and medium enterprises (MSMEs) in the manufacturing sector, said the annual report of CAG for 2016-17.

In August 2008, the industries department invited the expressions of interest, responding to which, an educational institution from south Goa was chosen and a project plan was submitted to the central government.

Out of the estimated expense of Rs 15.80 crore, Rs 6.80 crore was to be borne by state government, Rs 8.01 crore by the Centre and Rs 90 lakh by the institution.

In July 2010, the Centre referred the project to Indo-German Tool Room, Aurangabad for a quick review to study the tooling and training needs as per the present status of the tooling industry.

While IGTR sought more project details, which were submitted, there was no response from the central government.

But considering the project benefits, the state government approved its share of Rs 6.80 crore for the project and released Rs 4.52 crore, though no approval came from the Centre.

 In August 2011, a building was constructed for the tool room, but as the Centre did not approve the project or release its share of Rs 8.10 crore, the tools and machinery could not be purchased and since then it is lying dormant. (Inputs from a media report)