Performance Audit on the Swadesh Darshan Scheme, Ministry of Tourism

Findings

1. Of 76 projects sanctioned, not one was completed within its stipulated time. Of the 14 examined in detail, eight finished 22 to 47 months late and six were still unfinished.

   “Out of 76 projects sanctioned by the Ministry, no project was completed within the stipulated time frame. In selected 14 projects, it was noticed that eight projects were completed with delays ranging from 22 months to 47 months and six projects were yet to be completed, despite considerable delay.”Executive Summary

2. The scheme was launched despite objections from the Planning Commission and Ministry of Finance, and without any feasibility study — which the audit links directly to poor site selection, delays and unspent funds.

   “The Ministry launched the Scheme despite objection of the Planning Commission/Ministry of Finance and did not act upon the recommendation of the Standing Finance Committee to formulate an Umbrella scheme by merging the schemes having overlapping objectives… The Ministry formulated the Scheme without conducting any feasibility study. Non-preparation of the feasibility report resulted in poor identification of sites and deficiencies in execution of projects, such as delay in completion of the projects and non-utilisation of funds.”Executive Summary

3. Launched with a ₹500 crore outlay, the ministry had sanctioned more than ₹4,000 crore by 2016-17 without Cabinet approval, which is required above ₹1,000 crore.

   “After launching the Scheme with an initial outlay of ₹500 crore, the Ministry continued to sanction projects and the amount sanctioned had exceeded ₹4,000 crore by 2016-17. The Ministry sanctioned funds without obtaining approval of the Cabinet, which was necessary for sanctioning projects costing above ₹1,000 crore.”Executive Summary

4. No national or state plan was prepared before launch, and detailed perspective plans — the basis on which projects were to be chosen — were never made for 14 of the 15 circuits; the scheme's modalities were revised 15 times by August 2020.

   “There was lack of proper planning on the part of the Ministry as it did not ensure preparation of National or State level Plan before launching the Scheme. After the launch of the Scheme also, it did not ensure preparation of Detailed Perspective Plans (DPP) for 14 out of 15 tourist circuits/themes, which were to form the basis of selection of projects and preparation of Detailed Project Reports. Thus, the Ministry did not have any long-term vision/policy for implementing the Scheme. Further, frequent changes were made in the modalities of the Scheme and a total of 15 revisions were made till August 2020.”Executive Summary

5. All 14 project reports examined were deficient — prepared without a site survey, including sites without land or clearances, without tourist traffic surveys, gap analysis, detailed estimates or maintenance plans.

   “In all the 14 selected projects, there were deficiencies in the Detailed Project Reports (DPRs), such as preparation of DPR without site survey, inclusion of sites without land and other clearances, tourist traffic survey, infrastructure gap analysis, detailed estimates and bills of quantities, operation and maintenance plan etc.”Executive Summary

6. Because land availability was never verified before money was released, 149 components — 15.07 per cent — had to be dropped in 13 of the 14 projects, 35 to 69 months after sanction.

   “The Ministry sanctioned projects and released funds to the concerned State Governments based on an undertaking given by them in the Detailed Project Reports to provide encumbrance-free land. However, actual availability of land was not ensured before release of funds. As a result, in 13 of the 14 selected projects, the Ministry had to drop 149 components (15.07 per cent) after 35 months to 69 months from the date of sanction.”Executive Summary

7. Works were awarded 11 to 58 months late, some without the relevant sanctions, some without tendering at all and some on nomination.

   “There were delays ranging from 11 months to 58 months in the award of works by the State Governments in the selected 14 projects. Further, there were irregularities in award of works by the State Governments, such as award of work without relevant sanctions, award of work without tendering, or on nomination basis.”Executive Summary

8. ₹19.73 crore of undue benefit went to contractors through irregular payments and mobilisation advances, and states spent ₹51.56 crore of scheme funds wastefully, in excess, unfruitfully or inadmissibly.

   “There was undue benefit to contractors amounting to ₹19.73 crore on account of irregular payment to contractors and grant of mobilisation advance. Further, the State Governments incurred wasteful/excess/unfruitful/inadmissible expenditure of ₹51.56 crore from the Scheme funds.”Executive Summary

9. No instructions to open separate interest-bearing accounts were issued for more than five and a half years; 10 of 13 states never remitted ₹50.06 crore of interest earned on scheme funds, and utilisation certificates were late or missing in 47 of 76 projects.

   “The Ministry did not issue instructions to the States for opening of separate bank accounts for more than five and half years since the launch of the Scheme. As a result, many State Governments did not open interest-bearing accounts, thus causing loss of interest to the exchequer. Further, 10 out of the 13 selected States did not remit the interest of ₹50.06 crore earned on the Scheme funds to the Ministry. Also, there was delay/non-submission of Utilisation Certificates by the State Governments in 47 out of total 76 projects.”Executive Summary

10. The apex National Steering Committee met six times between January 2015 and March 2022 against 29 meetings required, and no arrangements were made for maintaining what had been built — with created facilities found unused and infrastructure deteriorating.

    “However, only six meetings of the National Steering Committee were held since inception (January 2015) of the Scheme till March 2022 as against 29 meetings required to be held… Site inspection revealed that no arrangements for effective upkeep and maintenance of assets were made. There were instances of created facilities not being put into operation, deterioration of infrastructure due to lack of proper maintenance and other irregularities.”Executive Summary

11. The rural circuit, one of the 15 themes, received ₹30.84 crore up to March 2022 — 0.73 per cent of all scheme expenditure.

    “The Ministry did not pay adequate attention to the development of the Rural circuit. As on 31 March 2022, the total expenditure incurred under Rural circuit was only ₹30.84 crore, which constituted only 0.73 per cent of the total expenditure incurred under the Scheme.”Executive Summary

Fact-checks citing this report

• ✕Not supported by auditBJP realizes that the tourism sector needs a clear plan for growth, and BJP commits to initiate a mission mode project to create 50 tourist circuits that are affordable and built around themes… This will lead to creation of infrastructure and employment around each tourist circuit.