WE THE PEOPLE
State Handloom Development Corporation has neither provided new looms to 750 weavers nor modernized their existing looms so far
Hence people demand corrective measures to benefit beneficiaries and probe into misappropriation of funds
By: Uzair Khan
Srinagar: It is an admitted fact that Kashmir valley has failed to come up on the Industrial Map of the country due to non-implementation of Industrial Policy and it was in this background that the GOI sanctioned the “Project Package Scheme for Handloom Weavers” for implementation by the State Handloom Development Corporation Limited at five weaving Centres in September 1999. The Project intended to increase earnings of the handloom weavers by modernizing their equipment and by supplying them highly productive and multi-product-oriented looms. Under the project, 750 weavers, 150 at each station, were to be covered by supplying new looms to 375 weavers and modernizing existing looms of another 375 weavers. The cost of the Project being Rs. 1.41 crore were to be shared between Central (Rs. 85.88 lakh) and State Government (Rs. 55.40 lakh). Out of the Central share, Rs. 21.50 lakh was to be treated as loan carrying interest at 12.5 per cent (15.25 per cent in case of default) per annum and was repayable in 10 equal installments. The Industries Department was to ensure implementation of the project, in accordance with the Government of India guidelines.
From the perusal of records, it has emanated that the Company received Rs. 1.41 crore from the Central/State Governments up to 2002-03 for implementation of the project. Accordingly to the Project Managers of these weaving centers (November 2004-April 2005), no loom was actually installed or modernized in any of the aforementioned weaving centers and none of the activities under the scheme had been carried out. Scrutiny of records further revealed that the Company in July 2005 instead of spending the amount on implementation of the project, had diverted major portion of the funds towards payment of salary/wages to its staff. It has further been observed that the Company submitted utilization certificates to the Central Government showing full utilization of Rs. 85.88 lakh, without mentioning the diversion. It is startling to learn that the FA&CAO of the Company has confirmed the above facts and also stated that a negligible amount was spent on purchase of raw material, weaver wages and not provided technical guidance to weavers.
Taking cognizance of the matter pointed out by the Audit, the Board of Directors put up the matter to the State Financial Commissioner (Finance) in December 2005, who directed the Director, Audit and Inspections in March 2006 to conduct special audit on the accounts of the Company. In his interim report, the Director, while confirming the Audit findings, held (July 2006) that misappropriation of Government money had taken place on a large scale and that the Company had submitted incorrect utilization certificates to the Central Government, without actually spending the money on the schemes for which it was meant. Detailed information as demanded by the audit and inspection wing was awaited from the Company, in the absence of which final report could not be prepared.
The diversion of scheme funds by the Company indicated that the Administrative Department had failed to monitor implementation of the project as required, thereby facilitating misuse of Government money.
Thus, due to misutilisation of Government funds by the Company, the intended benefits of the Scheme could not be passed on the beneficiaries and in addition, a liability of Rs. 37.50 lakh was also created by the Company towards outstanding loan (Principal: Rs. 21.50 lakh and interested Rs. 16.03 lakh) payable to the Central Government.
The matter has been reported to the Government/Management in March 2007; but no concrete action has been taken so far.
Hence people demand corrective measures to benefit the beneficiaries and probe into misappropriation of funds. It is unfortunate that the officials of the concerned Corporation have diverted funds and deprived poor weavers of the benefits to which they were entitled under the Central Scheme sanctioned for 750 weavers as back as September 1999.
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