The Comptroller and Auditor General (CAG) report, tabled in the Himachal Pradesh Assembly on Monday, raised serious questions about the utilisation of State Disaster Response Fund (SDRF) and National Disaster Response Fund (NDRF) in the state from 2019-20 to 2022-23.
As per the report, the Centre withheld Rs 61.07 crore due to misutilisation of SDRF funds in 2019-20. The report further noted that the misutilisation continued during the 2019-23 period, resulting in the Centre withholding Rs 254.73 crore sanctioned under NDRF.
The amount was not released due to high SDRF opening balances (Rs 745.91 crore in 2020, Rs 752.79 crore in 2021) caused by non-clearance of OB-suspense head.
Further, the Centre deducted an assistance of Rs 61.02 crore based on inaccurate notional SDRF balances, with no follow-up by the state for the release of the balance funds.
Additionally, Rs 122.27 crore remained in savings accounts instead of being invested as per regulations, resulting in loss of interest.
As per the report, the state disaster plan was not updated annually; and the State Disaster Response Force was understaffed, where only 193 of 326 positions were filled. District Emergency Operation Centres (DEOCs) remained under-equipped due to unutilised funds, data for 9,449 works (Rs 172.47 crore) was not updated and a large number of utilisation certificates remained pending.
Lapses in Jal Shakti Dept
The report also found significant lapses in planning, execution and maintenance of minor irrigation schemes under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and state schemes.
District Irrigation Plans (DIPs) and State Irrigation Plans (SIPs) were prepared with a total PMKSY plan of Rs 7,602.95 crore for 2016-20, including Rs 4,512.16 crore for Har Khet Ko Pani (HKKP) component covering 6,478 schemes.
However, only 129 schemes worth Rs 804.51 crore were sanctioned during 2017-22, with no sanctions in 2019-21. Detailed Project Reports (DPRs) for 24 test-checked schemes lacked essential surveys, leading to incomplete schemes, damages to the scheme works and inadequate water supply.
Irregularities in Forest Dept
The CAG has also raised questions about the functioning of the Forest Department. An examination of the records of the Shimla-based nodal officer under the Forest Conservation Act (FCA) revealed several irregularities.
In another case, saplings present on the forest land were not accounted for while calculating forest density. As a result, the possibility of under-assessment and consequent short realisation of Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funds amounting to Rs 1.33 crore cannot be ruled out, the report said.
Mining sector
The report also described the state of the mining sector under the Industries Department as concerning. Between 2018-19 and 2022-23, more than 40,000 cases of illegal mining were reported in the state, with more than 8,000 cases registered in 2022-23 alone.
The audit found that the department failed to prepare annual action plans for five years, impacting statutory inspections, royalty assessments. Project milestones under PMKKKY could not be systematically tracked.
Deficiencies in revenue collection were also revealed. The report discovered a shortfall of Rs 1.81 crore across 27 leases.
2,521 utilisation certificates pending
Institutions or organisations receiving grants have to furnish audited utilisation certificates (UCs) to the government after utilisation of Grants-in-Aid.
During the year 2024-25, Rs 7,887.44 crore pertaining to 22,512 outstanding utilisation certificates were due for the period up to March 31, 2025. Of these, Rs 4,562.91 crore pertaining to 19,991 outstanding UCs were cleared. As per the report, 2,521 UCs worth Rs 3,324 crore are pending up to 2024-25.
