CAG flags major lapses in Telangana’s AMRUT scheme implementation
HYDERABAD: The Comptroller and Auditor General of India (CAG) has strongly criticized the Government of Telangana for deficiencies in implementing the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The CAG cited lack of coordination, unscientific planning, financial irregularities, and inadequate monitoring across 12 cities and towns.
In its report for March 2022, the CAG noted that the state failed to execute the required tripartite Memorandum of Understanding (MoU) between the State Mission Directorate, the Engineer-in-Chief of Telangana Public Health and Municipal Engineering (ENC TPH&ME), and Urban Local Bodies (ULBs). This failure led to unclear roles and accountability. It also caused coordination problems. As a result, assets created under the Mission in Karimnagar and Ramagundam remain untransferred to local authorities.
The audit found that infrastructure gap assessments were not conducted scientifically. Service Level Improvement Plans (SLIPs) for water supply lacked authenticated data and documented estimates. This inadequate planning led to a shortfall in House Service Connections (HSCs). Many completed connections were not formally transferred to Urban Local Bodies.
Furthermore, the state failed to achieve the Service Level Benchmarks (SLBs) for water supply and sewerage management as envisaged under the Mission guidelines.
The CAG found that Mission funds were used for inadmissible expenses, including price adjustments, road restoration, and permanently lubricated ductwork. These expenditures violated Mission Guidelines and State Government orders, which require such costs to be covered by Municipal General Funds.
The report also pointed out a major failure in watching over finances. PH&ME Divisions did not follow rules when preparing bills, and Pay and Accounts Officers did not check them carefully. This led to contractors being paid more than they should have, especially due to price changes in petrol, oil, lubricants, and iron pipes and fittings.
A Joint Physical Verification (JPV) by the audit team in selected Mission cities revealed serious operational deficiencies. There were no effective measures to prevent water pipe cutting or meter removal. The inspection also found water pipelines laid on open surfaces and across drainage lines. This situation created significant health and safety risks.
Additionally, in six of the mission cities and towns reviewed, the ULBs did not establish a mechanism for local residents to help maintain parks. This made the upkeep of new green spaces under the Mission less sustainable.
The audit found that monitoring mechanisms were largely ineffective. Independent Review and Monitoring Agency (IRMA) reports, essential for quality control, were not submitted to the State Level Technical Committee (SLTC) or the State High Power Steering Committee (SHPSC). The State Mission Directorate also did not provide Action Taken Reports on IRMA findings, as required by Mission Guidelines.
To fix these problems, the CAG recommended that the State Government sign three-way agreements to make roles and responsibilities clear. The CAG also asked financial authorities to be very careful to stop extra payments, to punish officials who give out work without clear land rights, and to take strong steps to stop theft and damage to water systems. The audit said that IRMA findings must be sent to the SHPSC for proper follow-up.
