Chapter II Compliance Audit of General, Social and Economic Sectors (Report for the Year Ended 31 March 2021)
Summary
Chapter II, Compliance Audit of General, Social and Economic Sectors, from a Compliance Audit Report for the year ended 31 March 2021. The chapter's snapshot says it contains results of four Compliance Audits of the Food, Civil Supplies and Consumer Protection Department, the Social Welfare Department, the Public Works Department (PWD) and the Water Resources Department (WRD). It states that the audit of additional foodgrains distributed during the pandemic under PMGKAY and ANBS found that separate stock and distribution registers were not maintained in 88 percent and 85 percent respectively of test checked Fair Price Shops. It also reports that 2,644 persons and 1,641 families under ANBS were listed more than once.
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“Chapter II Compliance Audit of General, Social and Economic Sectors (Report for the Year Ended 31 March 2021).”
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CHAPTER II
COMPLIANCE AUDIT OF GENERAL, SOCIAL AND
ECONOMIC SECTORS
Snapshot of chapter:
This chapter contains results of four Compliance Audits pertaining to
departments under General, Social and Economic Sectors, viz. Food, Civil
Supplies and Consumer Protection Department; Social Welfare Department;
Public Works Department (PWD) and Water Resources Department (WRD).
Compliance Audit of Management of distribution of additional foodgrains
through Public Distribution System during pandemic was conducted to assess
the distribution of foodgrains to the targeted beneficiaries under Pradhan
Mantri Garib Kalyan Anna Yojana (PMGKAY) and Atma Nirbhar Bharat
Scheme (ANBS) launched by the Government of India during COVID-19
pandemic. During the Audit, deficiencies in distribution of additional rice and
chana to intended beneficiaries during pandemic were noticed. The State
Government failed to distribute rice and chana to the 30,218 migrant persons
and 20,395 families respectively under ANBS who were registered under the
scheme but did not turn up to Fair Price Shop (FPS). Due to multiple
generation of ID for the same beneficiary under ANBS, 2,644 persons and
1,641 families were listed more than once and distributed excess quantity of
rice (283.01 quintal) and chana (35.98 quintal) against the entitled quantity.
Separate stock and distribution registers were not maintained for the
PMGKAY and ANBS in 88 per cent and 85 per cent respectively test checked
Fair Price Shops.
The Compliance Audit of implementation of Direct Benefit Transfer (DBT)
under Indira Gandhi National Old Age Pension Scheme was conducted to
ascertain whether the implementation of scheme through DBT has resulted in
bringing efficiencies and minimize intermediary levels and delays in the
process of transfer of pension to the beneficiaries. Audit observed deficiencies
in implementation of DBT under IGNOAPS such as delays in sanction and
disbursement of pension; duplication of beneficiaries; pensioners of more than
80 years of age not getting pension at enhanced rates; delays in
discontinuation of pension after the death of a pensioner; sanction of pension
to ineligible beneficiaries (having age less than 60 years) as well as
shortcomings in verification and digitization of data of pensioners.
Compliance Audit of deduction of royalty charges of minor minerals
consumed in works in PWD and WRD was conducted to assess whether these
departments are deducting royalty charges as per provisions of Chhattisgarh
Minor Mineral (CGMM) Rules, 2015, and in accordance with directions
issued by Mineral Resources Department and Finance Department. Audit
observed that the two Departments did not revise the existing royalty clause in
the contracts executed for construction works in accordance with the amended
rules. Final payments were made without obtaining RCCs from the
contractors. Market value of minor minerals used in government works was
not deducted from the contractors’ bills. There were delays in issue of market
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Compliance Audit Report for the year ended 31 March 2021
rates by District Collectors. Royalty charges recovered from contractor’s bills
were not remitted into Mineral Resources Department’s account within
stipulated time period.
The objective of Compliance Audit of “Execution of Cement Concrete works
as per standard specification (Indian Standards- 456:2000)” was to review
execution of the cement concrete works (Plain Cement Concrete: PCC and
Reinforced Cement Concrete: RCC) as per the prescribed norms of IS Code
456:2000, and availability of adequate manpower and apparatus/machinery
with Department for conducting quality tests for cement concrete.
Audit observed that there was shortage of manpower ranging up to 80 per cent
in four out of the five quality control units of the Department and the required
number of machinery/apparatus were also not available in quality control labs.
Due to shortage of manpower and machinery, frequency of testing of concrete
cubes was less than the norms envisaged in the IS code and average specimens
required for each sample were not taken. Further, test results of concrete cubes
indicated that 93 per cent specimens failed to achieve the acceptance criteria
for the desired strength of concrete. The Department did not adhere to IS code
456:2000 and executed works with lower grade of concrete i.e. M-7.5 and
M-10 for PCC works and M-15 and M-20 for RCC works. In five agreements,
6,252 cum of work valuing ` 9.70 crore was executed through nominal mix
without preparation of design mix resulting in irregular execution of work.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Food, Civil Supplies and Consumer Protection Department
2.1 Management of distribution of additional foodgrains
through Public Distribution System during pandemic
2.1.1 Introduction
The Public Distribution System (PDS) evolved as a system of management of
scarcity through distribution of foodgrains at affordable prices and is operated
under the joint responsibility of the Central and the State Government. PDS in
Chhattisgarh is governed by the National Food Security Act (NFSA), 2013,
the Chhattisgarh Food and Nutrition Security Act (CGFSA), 2012 and
orders/circulars issued there under by Government of India (GoI) and
Government of Chhattisgarh (GoCG). Coverage under the NFSA is under two
categories: households covered in Antyodaya Anna Yojana (AAY) and Priority
Households (PHH). There were 217.12 lakh beneficiaries registered in AAY
and PHH categories under NFSA and CGFSA in the state, as shown in
Table 2.1.1:
Table 2.1.1: Number of beneficiaries (in lakh)
Category AAY PHH Total
Cards Members Cards Members Cards Members
NFSA 7.25 19.65 40.33 167.31 47.58 186.96
CGFSA 2.93 8.51 2.35 7.73 5.28 16.24
CGFSA NFSA
PHH 3.82 13.92 0 0 3.82 13.92
Total 14.00 42.08 42.68 175.04 56.68 217.12
(Source: Data provided by the Department and compiled by Audit)
To prevent the spread of COVID-19 pandemic in the country, nationwide
lockdown was imposed by GoI from 25 March 2020 to 31 May 2020 in four
phases1. Subsequently, GoI announced the Pradhan Mantri Garib Kalyan
Anna Yojana (PMGKAY) for all NFSA beneficiaries and the Atma Nirbhar
Bharat Scheme (ANBS) for all migrants/stranded migrants and all those who
were not covered under the NFSA or the State PDS scheme. The phased lifting
of restrictions in a series of “unlock” started in June which extended up to
November 2020.
Under the above schemes of GoI and GoCG scheme, additional foodgrains
were provided over and above regular NFSA/CGFSA entitlement, free of cost
to poor people so that they would not face difficulties in essential supplies
during the pandemic.
1
Phase I: 25 March-14 April (21 days), Phase II: 15 April-3 May (19 days), Phase III:
4 May -17 May (14 days), Phase IV: 18 May-31 May (14 days)
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Compliance Audit Report for the year ended 31 March 2021
2.1.2 Scheme interventions under PDS by GoI and GoCG
during COVID-19 period
The details of scheme interventions by GoI and GoCG during COVID-19
period were as shown in Table 2.1.2:
Table 2.1.2: Details of scheme interventions during pandemic period
Scheme Intervention Period of Eligibility
scheme
Pradhan Mantri Additional five kg rice April - All NFSA
Garib Kalyan Anna per person per month November 2020 beneficiaries under
Yojana (PMGKAY- and one kg preferred and May 2021- Antyodaya Anna
Central scheme) pulses per family per March 2022 Yojana (AAY) and
month free of cost Priority Household
(PHH)
Atma Nirbhar Five kg rice per person May - June 2020 Stranded migrants
Bharat Scheme per month and 1kg who were not
(ANBS - Central chana per family per covered under
scheme) month free of cost. NFSA or State
scheme PDS cards
Mukhyamantri Additional five kg rice April - Ration Card holders
Khadyan Sahayta per person and one kg November 2020 covered under
Yojana preferred pulses per and May 2021- CGFSA
(MKSY - State family per month free of March 2022.
scheme) cost
2.1.3 Mechanism of PDS in Chhattisgarh
In Chhattisgarh State, Department of Food, Civil Supplies and Consumer
Protection is responsible for management of Public Distribution System,
procurement of food grains at support prices, and implementation of
NFSA, 2013 and CGFSA, 2012 besides other works. The procurement, lifting
and transportation of food grains is done by the Directorate through the
Chhattisgarh State Civil Supplies Corporation Limited (CGSCSCL) to the Fair
Price Shops (FPSs) for distribution to the targeted beneficiaries under PDS.
The Food Controller (FC)/Officer (FO) in the district ensures distribution of
the foodgrains to the beneficiaries as per their entitlement. The foodgrains are
distributed through 13,284 FPSs in the State to beneficiaries by Biometric
Aadhaar authentication. GoCG had suspended (March 2020) Biometric
Aadhaar authentication in PDS during lock down period and directed
distribution of foodgrains by uploading photograph of beneficiary or One
Time Password (OTP).
2.1.4 Allotment, off-take/lifting and distribution of rice
The details of total quantity of allotment, lifting and distribution of regular and
additional rice through PDS under NFSA and CGFSA during the period
2019-20 and 2020-21 are shown in Table 2.1.3.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Table 2.1.3: Allotment, lifting and distribution of rice
(Quantity in quintal)
NFSA (Regular CGFSA (Regular Total quantity
2019-20
and additional) and additional)
Allotment 13988539 8266284 22254823
Lifting 13847531 8085609 21933140
Distribution 13846516 8127101 21973617
2020-21
Allotment 19923658 7729477 27653135
Lifting 19818942 7721795 27540737
Distribution 18581415 8819868 27401283
2021-22 (up to
June 2021)
Allotment 4447693 2547417 6995110
Lifting 4451773 2537694 6989467
Distribution 4410620 2528679 6939299
(Source: The data have been compiled from the official website https://khadya.cg.nic.in/ of
Food, Civil Supplies and Consumer Protection Department, Chhattisgarh)
2.1.5 Organisational set up
Secretary, Food, Civil Supplies and Consumer Protection Department, GoCG
is the administrative head and is responsible for implementing PDS by
ensuring compliance of provisions of the NFSA and the CGFSA in the State.
Director, Food, Civil Supplies and Consumer Protection Department,
Chhattisgarh is entrusted with the responsibility of executing PDS in the State
and is assisted by 28 FCs/FOs in 28 districts. In each district there are Food
Inspectors (FIs) to inspect distribution of foodgrains under PDS. CGSCSCL is a
company under the Department which procures, lifts and transports allotted
foodgrains to the FPSs for distribution.
2.1.6 Focus areas
The compliance audit was conducted with focus on additional foodgrains
provided during COVID-19 pandemic under PDS to assess the distribution of
additional foodgrains as per the schemes.
2.1.7 Audit Criteria
Audit criteria were derived from the following sources:
The National Food Security Act, 2013 and the CG Food and Nutrition
Security Act, 2012 and PDS (Control) orders issued there under.
Scheme guidelines and orders/circulars/notifications issued by GoI and
GoCG for implementation of PDS for COVID-19 period.
2.1.8 Scope and methodology
The compliance audit covered the apex level units viz. Directorate of Food,
Civil Supplies and Consumer Protection Department and the nodal agency
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Compliance Audit Report for the year ended 31 March 2021
CGSCSCL and FCs/FOs and District Manager, CGSCSCL in 20 selected
districts. In each selected district, six FPSs (three urban and three rural) were
covered along with survey of 10 beneficiaries under each FPS thus covering
120 FPS and 1,177 beneficiaries. The audit period covered was from
April 2020 - June 2021.
The audit methodology included test-check of records and documents,
collection of information and data in the formats, interaction with management
and issue of audit queries/observations. Audit also conducted joint inspection
with the officials of the Department of 120 selected FPSs.
2.1.9 Audit sampling
Out of 28 districts in the State, 14 districts were selected on the basis of
Probability Proportional to Size and Without Replacement (PPSWOR)
method. In addition, six districts were also selected. Accordingly, total
20 units of FCs/FOs were covered in compliance audit, as detailed in
Appendix 2.1.1.
In each selected district, six FPSs were selected on the basis of Simple
Random Sampling without Replacement (SRSWOR) method.
Selection of 10 beneficiaries for survey under each selected FPS was done on
the basis of availability of beneficiaries at the time of joint inspection of the
FPS.
2.1.10 Audit Findings
2.1.10.1 Allotment, off-take/lifting and distribution of rice during
pandemic
GoI and GoCG allocated additional rice to the Department under different
schemes for distribution to the beneficiaries through FPSs. The details of
quarterly allotment, off-take/lifting and distribution of regular and additional
rice through PDS under NFSA and CGFSA for the ten months period of April
to November 2020 and May to June 2021 during pandemic are as shown in
Table 2.1.4.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Table 2.1.4: Allotment, lifting and distribution of rice
(Quantity in quintal)
2020-21 2021-22
Scheme Total
Apr-Jun 20 Jul-Sep 20 Oct-Nov 20 May-Jun 21
NFSA
4998335 3488604 2314465 2306823 13108227
Regular
NFSA
0 2506404 2003530 987464 5497398
Additional
Allotment CGFSA
2413465 1251300 493109 1624040 5781914
Regular
CGFSA
0 215070 175028 117876 507974
Additional
Total 7411800 7461378 4986132 5036203 24895513
NFSA
4999250 3426109 2300130 2316370 13041859
Regular
NFSA
0 2506078 1992223 987455 5485756
Additional
Lifting CGFSA
2480305 1226944 483638 1624501 5815388
Regular
CGFSA
0 214992 172632 117934 505558
Additional
Total 7479555 7374123 4948623 5046260 24848561
NFSA
3791235 3456104 2296790 2297052 11841181
Regular
NFSA
0 2471113 1987859 969363 5428335
Additional
Distribution CGFSA
3566747 1232719 487778 1614399 6901643
Regular
CGFSA
0 206547 172486 114261 493294
Additional
Total 7357982 7366483 4944913 4995075 24664453
(Source: The data have been compiled from the official website https://khadya.cg.nic.in/ of
Food, Civil Supplies and Consumer Protection Department, Chhattisgarh)
It can be seen from the table that allotment, lifting and distribution of
additional rice in the first quarter i.e. April-June 2020 was shown as nil as the
additional rice during this period was not accounted for separately and
included under the regular component of the scheme.
2.1.10.2 Beneficiaries not benefited with additional quantity of
food grains during COVID-19 pandemic
GoI launched (March 2020) Pradhan Mantri Gareeb Kalyan Anna Yojana
(PMGKAY) as a part of economic measures to mitigate the hardships faced
by the poor and needy people due to economic disruptions caused by
COVID-19 pandemic. Under the scheme, additional five kg free rice per
person per month was to be provided for distribution to all the beneficiaries
covered under NFSA. Coverage under the NFSA is under the two categories-
household under Antyodaya Anna Yojana (AAY) and Priority Household
(PHH). The additional five kg free rice was over and above the regular
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Compliance Audit Report for the year ended 31 March 2021
admissibility under NFSA. The scheme was initially implemented for a
period of eight months from April- November 2020. GoI implemented
(April 2021) the scheme again for the period May-November 2021, which
was further extended up to March 2022.
The State Government, prior to launch of PMGKAY had been providing (since
July 2019) additional quantity of rice every month at subsidised prices to
these PHH beneficiaries based on number of persons in each ration card.
Accordingly, PHH card holder having only one person was provided total
10 kg, two persons 20 kg, three to five persons 35 kg and more than five
persons seven kg per person per month at the subsidised rate of ` one per kg.
These quantities are inclusive of five kg rice per person provided regularly by
GoI under NFSA.
After the launch of PMGKAY, the State Government issued (April 2020)
order with reference to quantity of additional free rice revising the total
quantity of rice to be provided to PHH beneficiaries of the State, as given in
the Table 2.1.5. Due to withdrawal of additional quantity of rice earlier
provided to beneficiaries by the State Government, the NFSA and CGFSA
beneficiaries were not benefitted with additional quantity of rice at the rate of
five kg per person over and above the existing entitlement, as detailed in next
paragraphs:
Distribution of additional free rice under PMGKAY to NFSA
beneficiaries
Audit noticed (June 2021) that after issue of the above order by the State
Government, the NFSA- PHH beneficiaries were not provided any additional
rice in comparison to the quantity of regular rice admissible prior to
implementation of the PMGKAY as shown in Table 2.1.5:
Table 2.1.5: Provision of regular and additional admissibility of rice
(Quantity in kg)
Number of Regular admissibility Additional Total Total Additional
person/s in (State Government vide quantity as per quantity admissibility benefit to
each ration Gazette notification PMGKAY after as per the beneficiaries
card (PHH) dated 12/July/2019) vide GoI implementat State (w.r.t.
prior to PMGKAY order dated ion of Government Col.2)
(March 2020) PMGKAY order (April
2020)
1 2 3 4 5 6
(col.2+col.3) (col.5-col.2)
01 10 5 15 10 Nil
02 20 10 30 20 Nil
03 35 15 50 35 Nil
04 35 20 55 40 5
05 35 25 60 50 15
06 42 30 72 60 18
07 49 35 84 70 21
It can be seen from the above table that one to three members of NFSA-PHH
ration card holders were not benefitted with additional rice and PHH card
holders having more than three members were benefitted with additional
quantity of rice at the rate of three kg per person instead of five kg per
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Chapter II: Compliance Audit of General, Social and Economic Sectors
persons, as envisaged under the PMGKAY. A total of 31.05 lakh NFSA-PHH
beneficiaries (one to three members) in the State were provided the same
quantity of rice that they were receiving prior to implementation of the
PMGKAY. Similarly, 136.27 lakh beneficiaries (PHH cards having more than
three members) were provided additional quantity of three kg per month.
Thus, 167.32 lakh NFSA-PHH beneficiaries in the State, were not benefitted
with the additional support as intended under the scheme.
Thus, the objective of implementation of the PMGKAY to ameliorate the
hardships faced by the poor due to economic disruption caused by COVID-19
by providing assistance of additional free rice was not fully achieved.
On being pointed out (January 2022), the Special Secretary to GoCG, Food,
Civil Supplies and Consumer Protection Department stated (May 2022) that as
per Section 3(1) of the NFSA, 2013, monthly entitlement of PHH card holders
is five kg foodgrain per person. GoI allocated five kg additional foodgrain per
person per month to PHH card holders under PMGKAY along with the
monthly entitlement under NFSA. On that basis, the entitlement of foodgrain
for PHH ration card holders based on number of members, was fixed and rice
equal to combined monthly total of entitled quantity of regular and additional
rice or more was distributed to them.
Reply is not acceptable because the NFSA-PHH beneficiaries of the State
were provided and distributed same quantity of rice (regular plus additional)
during pandemic period as in pre-pandemic period since July 2019 and were
not effectively benefited additional rice during pandemic.
Distribution of chana under PMGKAY
GoI provided (April 2020) one kg chana per household per month to NFSA
households under PMGKAY for the period April-November 20202. GoCG
had issued (April 2020) orders to provide one kg chana to CGFSA3
households and had also ordered for distribution of maximum two kgs per
household per month in Modified Area Development Authority (MADA4)
kshetra and scheduled notified area subject to the condition of one kg free as
per the GoI scheme and one kg at the rate of ` five per kg. Whereas AAY and
PHH card holders of these areas were already in receipt of two kgs chana per
month at the rate of ` five per kg under the state scheme Chana Vitaran
Yojana. In these areas, 25.34 lakh households were distributed the same
quantity of chana during pandemic period as they were receiving in pre-
pandemic period.
There were average 51.45 lakh number of NFSA households in the State who
were entitled to receive one kg chana for the period April-November 2020.
The month-wise detail of number of cards/families under NFSA, allotment,
lifting and distribution of chana during the seven months period is shown in
Table 2.1.6.
2
Except for the month of June where arhar dal was provided.
3
Excluding the Above Poverty Line (APL) category.
4
MADA kshetra are identified pockets (consisting of one or more revenue villages) in
contiguous areas with a concentration of tribals with 50 per cent or more within total
population of 10,000 or more in such area
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Compliance Audit Report for the year ended 31 March 2021
Table 2.1.6: Statement showing non-distribution of chana to 51.45 lakh NFSA
households/card holders
Name of Chana_GoI Non-distribution
the month (in quintal)
NFSA Allotment Lifting Distribution
family/Cards
Apr-20 5150023 51500.36 51647.87 50930.97 569.39
May-20 5150023 51500.22 51339.48 50589.57 910.65
Jul-20 5149500 51495.24 51259.16 45231.48 6263.76
Aug-20 5149254 51493.26 51481.27 45722.45 5770.81
Sep-20 5148321 51483.98 51395.96 48957.63 2526.35
Oct-20 5147587 51475.89 50714.07 50497.67 978.22
Nov-20 5120520 51205.60 50878.07 50421.65 783.95
TOTAL 360154.55 358715.88 342351.42 17803.13
The Department allotted 3.60 lakh quintal chana against which 3.59 lakh
quintal chana was lifted and only 3.42 lakh quintal was distributed to the
beneficiaries. This resulted in non-distribution of 17,803 quintal chana to
2.54 lakh households.
On being pointed out (January 2022), the State Government did not furnish
any specific reply with respect to the observation.
2.1.10.3 Implementation of Atma Nirbhar Bharat Scheme
GoI launched (May 2020) the Atma Nirbhar Bharat Scheme (ANBS) to
provide five kg free rice to each person and one kg free chana to each family
of the migrants/stranded migrants, who were not covered under NFSA or state
scheme PDS ration cards with the objective to mitigate their plight and to
ensure availability of foodgrains to them during COVID-19. Under the
scheme, GoI had allocated rice and chana to the State for two months i.e.
May 2020 and June 2020 for distribution to these targeted beneficiaries. The
State Government was responsible for identifying beneficiaries and
distributing foodgrains to such beneficiaries. GoI had extended validity period
(up to 15 June 2020) for lifting of unlifted rice up to 25 June 2020 barring
further extension in future. GoI also extended time for distribution
(30 June 2020) of already lifted (up to 25 June 2020) quantity of foodgrains
up to 31 August 2020. Allocation, lifting and distribution of rice and chana
under the scheme were as shown in Table 2.1.7:
Table 2.1.7: Allocation, lifting and distribution of rice and chana under ANBS
(Quantity in MT)
Item Allocation by Lifting Distribution Identified Benefitted
GoI Beneficiaries
Rice 20076 2108 1964.41 222605 persons 196441 persons
Chana 1056 1056 173.29 109179 families 86645 families
(Source: GoI order dated 15 May 2020 and GoCG letter dated 11 September 2020)
Audit observed irregularities and shortcomings in implementation of the
scheme as discussed below:
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Chapter II: Compliance Audit of General, Social and Economic Sectors
i. Multiple generations of IDs resulted in excess distribution of
foodgrains: As per information on distribution of foodgrains under
ANBS submitted (September 2020) to GoI by the State Government,
1,09,179 migrant families with 2,22,605 members had been registered in
the State under ANBS scheme. A total of 1,964.41 MT rice to
1,96,441 members and 173.29 MT chana to 86,645 families were
distributed for two months under the scheme.
Audit noticed from the distribution list that rice was distributed to
1,92,387 persons and chana to 88,784 families. Scrutiny of the list
provided by the Directorate revealed that details such as Aadhar
numbers, gender and age were same for different persons shown in the
list. Audit analysis further revealed that due to multiple generations of
IDs for each person/family, 2,644 persons were listed multiple times and
benefitted with excess distribution of rice of 283.01 quintal5. Similarly,
due to multiple generation of ID for the same family, 1,641 families
were listed more than once and distributed excess quantity of chana of
35.986 quintal against the entitled quantity. However, the possibility of
diversion of food grains shown as distributed in excess of the entitled
quantities to beneficiaries listed multiple times cannot be denied.
On being pointed out (January 2022), the State Government did not
furnish any specific reply with respect to the observation.
ii. Non-distribution to beneficiaries: The State Government had
identified 2,22,605 members under 1,09,179 families of migrants to be
covered under ANBS in Chhattisgarh. Out of which 1,92,387 persons
and 88,784 families were distributed rice and chana respectively and
30,218 persons (14 per cent) and 20,395 families (19 per cent) could not
be covered. The State Government stated (May 2022) that these
persons/families did not turn up in FPSs to receive rice and chana.
iii. Non maintenance of separate stock registers: Apart from the above
issues, 73 FPSs out of 86 FPSs in 19 districts did not maintain separate
distribution registers for the Scheme.
The State Government did not furnish any specific reply to the
observations.
2.1.10.4 Irregularities noticed in joint inspection of Fair Price
Shops (FPSs)
Audit team along with departmental staff conducted joint inspection of
120 FPSs and interacted with 1,177 BPL beneficiaries regarding availability of
foodgrains and schemes launched and implemented during pandemic period.
Deficiencies noticed in joint inspection are discussed below:
i. In test-checked 1,177 ration cards, 4,665 members were distributed
5,127 quintal rice and 105 quintal chana against allotted quantity of
5
Excess rice (283.01 quintal)=Actual distributed (547.41quintal) - admissible qty.
(264.40 quintal)
6
Excess chana (35.98 quintal)=Actual distributed (68.80 quintal) - admissible qty.
(32.82 quintal)
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Compliance Audit Report for the year ended 31 March 2021
5,302 quintal rice and 129 quintal chana respectively which resulted in
non-distribution of 175 quintal rice and 24 quintal chana.
ii. Separate stock register and distribution register prescribed in the
PMGKAY were not maintained in 106 (88 per cent) FPSs. FPSs
distributed rations in offline/manual mode and uploaded later in the
departmental website due to poor internet coverage.
iii. In 96 (80 per cent) FPSs, monthly inspection had not been carried out by
the Department and inspection registers were not maintained for the
period from April 2020 to June 2021.
On being pointed out (May 2022), the State Government did not furnish
any reply.
iv. As per Section 23 of the CGFSA, every local body or any other authority
or body as may be authorised by the State Government, shall conduct
periodic social audit on the functioning of FPSs for ensuring
transparency and accountability. Audit noticed in joint inspection of 120
selected FPSs that social audit was not conducted in 117 (98 per cent)
FPSs in non-compliance of the provision of the Act.
On being pointed out (January 2022), the State Government stated (May 2022)
that no social audit of FPSs was conducted in the year 2019-20 and 2020-21.
2.1.11 Conclusion
To mitigate the hardships faced by the poor and needy people due to economic
disruptions caused by COVID-19 pandemic, GoI under Pradhan Mantri
Gareeb Kalyan Anna Yojana provided for distribution of additional five kg
free rice per person to the NFSA (AAY households and PHH) beneficiaries in
addition to the regular quantity. The State Government was providing extra
five kg rice to NFSA/CGFSA beneficiaries in Chhattisgarh prior to the launch
of PMGKAY. However, after the launch of PMGKAY, maximum quantity of
free rice admissible to beneficiaries was restricted as per the GoI scheme due
to which NFSA-PHH beneficiaries in the State were not actually benefitted
with the extra quantity of free rice during the pandemic period over and above
the regular quantity being received by them earlier, as intended in scheme.
Due to multiple generation of IDs for the same beneficiaries, 318.99 quintal
foodgrains (283.01 quintal rice and 35.98 quintal chana) was distributed to the
migrant beneficiaries in excess of the entitled quantities under Atma Nirbhar
Bharat Scheme. The State Government failed to distribute rice and chana to
the migrant beneficiaries of 30,218 members and 20,395 families respectively
under ANBS who were registered under the scheme but did not turn up to
FPS.
Separate stock and distribution registers were not maintained for the
PMGKAY and ANBS in the 88 per cent and 85 per cent respectively in test
checked Fair Price Shops (FPSs). Monthly inspection was not carried out in
80 per cent FPSs by the Department and inspection registers were not
maintained. Social audit was not found to have been conducted in 98 per cent
FPSs.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
2.1.12 Recommendations
1. Any additional foodgrain provided under any scheme launched
specifically in the wake of pandemic /disaster should be provided to
the targeted beneficiaries over and above the regular entitled
foodgrains.
2. Periodical inspection of FPSs as prescribed should be conducted
regularly and inspection records may be maintained by the
Department to prevent irregularities and their follow-up.
23
Compliance Audit Report for the year ended 31 March 2021
Social Welfare Department
2.2 Implementation of Direct Benefit Transfer under
Indira Gandhi National Old Age Pension Scheme
(IGNOAPS)
2.2.1 Introduction
The Directive Principles of the State Policy in the Constitution of India enjoin
upon the State to undertake welfare measures within its means, targeting the
poor and destitute in particular. Further, Article 41 of the Constitution of India
directs the State to provide public assistance to its citizens in the case of old
age, unemployment, sickness and disablement. Social security and old age
pensions figure as item 23 of the Seventh Schedule of the Constitution of India
in the Concurrent List. In accordance with these guiding principles, the
Government of India (GoI) launched National Social Assistance Programme
(NSAP) on 15th August, 1995. National Old Age Pension Scheme (NOAPS)
was one of the component of the NSAP. The National Old Age Pension
Scheme was renamed as Indira Gandhi National Old Age Pension Scheme
(IGNOAPS) and formally launched on 19th November, 2007. In Chhattisgarh
the IGNOAPS, as a sub scheme of NSAP is implemented by Social Welfare
Department with the help of local bodies. As per the scheme, a beneficiary
fulfilling the eligibility criteria7, of age between 60 and 79 years gets a pension
amount of ` 350 (` 200 by Central Government and ` 150 by State
Government) per month and after attaining the age of 80 years the pension
amount is enhanced to ` 650 (` 500 by Central Government and ` 150 by State
Government) per month.
In order to credit the amount of pension payable to each beneficiary directly
into his account and to increase the transparency and accountability in the
implementation, an online platform i.e. National Social Assistance
Programme-Pension Processing System (NSAP-PPS) was created by Ministry
of Rural Development (MoRD), Government of India (GoI) with help of
National Informatics Centre (NIC). It is a web based application/software
which captures all the essential processes from identification till termination of
the pension and facilitates the MoRD in monitoring the implementation of
scheme closely. However, in Chhattisgarh State, process of identification and
verification of new beneficiaries is being done manually. After completion of
rejection/selection process, details of only eligible beneficiaries is being
entered into NSAP MIS.
Further, in order to bring transparency and ensure quick payment of pension to
beneficiaries, Direct Benefit Transfer (DBT) using Public Financial
7
Eligibility Criteria for IGNOAPS:
• The old person of age 60 years or above
• Applicant is resident of Chhattisgarh
• Applicant belongs to Below Poverty Line (BPL) list of families (BPL list 2002 is
considered for deciding the BPL criteria).
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Management System8 (PFMS) through online NSAP-PPS was introduced in
2013 for making pension payment.
Direct Benefit Transfer aims to transfer benefits directly into the bank/postal
accounts, preferably Aadhaar seeded, of accurately targeted beneficiaries. The
basic objectives of the DBT were ensuring electronic transfer of benefits,
minimising intermediary levels involved in benefit flow, reducing delay in
payments, accurate targeting of the beneficiary and curbing pilferage and
duplication. The State Government has started implementation of DBT for
IGNOAPS through PFMS using NSAP-PPS in August 2018.
2.2.2 Organisational Set up
At the Central level, Ministry of Rural Development (MoRD) exercises
overall control on implementation of IGNOAPS. The responsibility of
implementation of IGNOAPS in the State is vested with the Social Welfare
Department which works as the Nodal Department. At the district level the
implementation of the scheme is entrusted to district offices of Social Welfare
Department. At the block level, the Janpad Panchayats (Intermediate
Panchayat) are responsible for sanction/rejection of pension cases and
implementation of scheme. Gram Panchayats have been given roles in
selection of beneficiaries, supervision and monitoring.
2.2.3 Audit objectives
The Compliance Audit, covering the period from 2018-19 to 2020-21 was
undertaken to ascertain:
Whether necessary process re-engineering was done for implementation
of DBT to minimize intermediary levels and delay in payments to
intended beneficiaries and prevent duplication of beneficiaries
Whether the infrastructure, organisation and management of DBT under
IGNOAPS was adequate and effective
2.2.4 Audit Criteria
Audit findings were benchmarked against the criteria sourced from the
following:
Guidelines of the Pension Scheme and circulars, orders issued by the
Ministry of Rural Development, GoI and Department of Social Welfare,
Government of Chhattisgarh (GoCG),
Management Information Software Operational Manual, DBT Manual,
Standard Operating Procedures and Handbook on DBT, and
Guidelines of Scheme on process of identification and authentication of
beneficiaries and payments.
8
The Public Financial Management System (PFMS) is a web-based online software
application developed and implemented by the Ministry of Finance, Government of India.
PFMS serves as a common central portal for registering implementing agencies and
beneficiaries which facilitates the implementing agencies in Direct Benefit Transfer
(DBT) of funds/amounts to a beneficiary, directly into her/his bank account.
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Compliance Audit Report for the year ended 31 March 2021
2.2.5 Audit Scope and Methodology
Audit scrutinised the records for period 2018-19 to 2020-21 at the Social
Welfare Directorate and offices of the Joint Director/ Deputy Director, Social
Welfare Department in nine districts9. In each district, two blocks (total
18 blocks10) were selected. At block level, the offices of Chief Executive
Officer, Janpad Panchayat and two Gram Panchayats in each block were also
covered. The sample selection of audit units was done using sampling
methodology of Probability Proportional to Size without Replacement. Apart
from examination of records at these offices, the data from NSAP-PPS was
also examined.
2.2.6 Beneficiaries covered and Financial Outlay
The number of beneficiaries covered from 2018-19 to 2020-21 and details of
beneficiaries and expenditure incurred under IGNOAPS during the last three
years is as shown in Table 2.2.1:
Table 2.2.1: Financial outlay and beneficiaries covered
(` in crore)
Number of Expenditure Total Expenditure
Year
beneficiaries (Central share) (Centre and State)
2018-19 661623 169.26 288.35
2019-20 666576 184.55 303.99
2020-21 662415 248.05 367.27
2021-22 (Till Nov 2021) 652376 126.01 204.29
(Source: As per information provided by the Department and State expenditure is calculated
at the rate of ` 150 per beneficiaries)
2.2.7 Audit Findings
2.2.7.1 Coverage of beneficiaries under DBT and existing
intermediary levels in fund transfer
One of the main objectives of the implementation of Direct Benefit Transfer
(DBT) was to reduce the intermediary levels involved in the benefit flow. In
Chhattisgarh, Direct Benefit Transfer has been adopted for IGNOAPS since
August 2018. For making DBT payments, a State level Nodal Account (SNA)
was maintained at directorate office through which pension was paid directly
into the beneficiaries’ account.
During audit it was noticed that 95 per cent of pension payments under
IGNOAPS was made through DBT. In these cases, pension amount was
directly transferred into the beneficiaries’ account from the State nodal
account eliminating three intermediary levels (district offices, block
9
Jashpur, Korea, Raigarh, Bilaspur, Baloda Bazar, Korba, Dhamtari, Kondagaon,
Narayanpur
10
Jashpur (Patthalgaon, Jashpur), Korea (Baikunthpur, Manendragarh), Raigarh (Sarangarh,
Baramkela), Bilaspur (Belha, Masturi), Baloda Bazar (Bilaigarh, Simga), Korba (Podi
Uparoda, Katghora), Dhamtari (Nagri, Magarlod), Kondagaon (Kondagaon, Baderajpur),
Narayanpur (Narayanpur, Orchha(Abujhmad))
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Chapter II: Compliance Audit of General, Social and Economic Sectors
panchayats and village panchayats) in transfer of benefit. District wise details
of coverage of beneficiaries under DBT is as shown in Table 2.2.2:
Table 2.2.2: District wise details of DBT and Non-DBT Payments
Districts Total Total DBT payments Non-DBT payments
Payments (percentage of total (Percentage of total
payments) payments)
Baloda Bazar 31601 31174 (99) 427 (1)
Bilaspur 41976 40419 (96) 1557 (4)
Dhamtari 13007 12144 (93) 863 (7)
Jashpur 23534 21197 (90) 2337 (10)
Kondagaon 14078 13589 (97) 489 (3)
Korba 26169 25318 (97) 851 (3)
Korea 13236 12868 (97) 368 (3)
Narayanpur 5171 2342 (45) 2829 (55)
Raigarh 59871 58355 (97) 1516 (3)
Total 228643 217406 (95) 11237 (5)
(Source: Compiled from information provided by the Department about DBT and Non-DBT
payment details of month November 2021)
From the above table it can be seen that in six out of the nine test checked
districts the percentage of DBT payments were 95 per cent or above, in two
districts it was between 90 to 95 per cent while in one district (Narayanpur) it
was only 45 per cent. The reason for low DBT payments in Narayanpur, as
informed by the Department was non-availability of banks at accessible
distance. In non-DBT cases, the pension payments were made by Gram
Panchayats to beneficiaries which were initiated from the state level and
routed through districts, block panchayats and village panchayats.
Audit further noticed that pension funds were initially allotted by the
Department to district authorities. The district offices, after drawing the funds
from treasury to their bank account on the basis of number of beneficiaries,
transferred the funds required for DBT payment to the SNA of Directorate
office and non-DBT payments to local bodies. After receipts of funds from all
district offices, the Directorate office approved the transfer of funds into
beneficiaries account through DBT. Here, as the final payments are being
made at directorate level from one nodal account, drawl of funds first in
districts accounts and then transfer it back into nodal account could have been
avoided.
On being pointed out the Government replied (May 2022) that process of
allotting the fund to districts and then deposit into nodal account is being
followed due to reasons that works of real time updation of data, sanction of
new pension, deletion due to death or otherwise, bifurcation of non-DBT data
are done at district level and further for direct allotment the Directorate office
has to withdraw funds from treasury which will hamper the monitoring and the
district offices will try to shift their responsibilities to State level.
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Compliance Audit Report for the year ended 31 March 2021
However, funds can be drawn from treasuries by district authorities for direct
deposit into the SNA by avoiding the transfers from treasuries to district bank
accounts.
2.2.7.2 Delay in Direct Benefit Transfers
As per the guidelines issued by the State Government the payment of pension
to beneficiaries should be made regularly as being paid to government
servants. In this regard, the Supreme Court has also directed to make payments
promptly by the 7th of each month. The primary objective of the introduction
of DBT was also to reduce the delay.
During audit it was observed that for making the pension payments, initially
the funds were allotted to districts offices of Social Welfare Department of
respective district. District offices calculated the pension amount for the
beneficiaries of IGNOAPS every month through online platform of
NSAP-PPS. This calculation of pension was done automatically on online
portal of NSAP. After the pension calculation, pension computation file was
pushed ahead by respective district offices towards Directorate office for
making payments. Simultaneously, the district offices draw the allotted funds
from treasury and transferred the amount required for DBT payments back
into a State nodal account maintained by directorate office. The pension
computation files received from various districts were approved by the
Directorate office and the DBT payments were made through PFMS directly
into beneficiaries’ accounts.
Audit examined the monthly payments made during period January 2020 to
November 2021 which revealed that even after introduction of DBT, the
disbursement of pension was not being made till 7th of the next month. Out of
204 monthly payments cases it was noticed that in 194 cases the payments
were delayed. In 161 cases the delay ranged from one day to one month, in
28 cases delay ranged between one to two months while in five cases delay
ranged between two to three months. The details have been shown in
Appendix 2.2.1. These transfers were delayed mainly as the districts were
transferring the funds to SNA with delay. Out of the above delayed cases on
97 occasions the districts transferred the amount after lapse of due date (7th of
the next month). Funds were transferred with a delay between one day to one
month in 91 cases, between one to two months in 5 cases and between two to
three months in one case.
Audit further observed that during month of November 2021 in nine districts
total 3,325 (1.5 per cent) payments out of 2,17,406 DBT payments were
failed. This shows that data relating to these beneficiaries was not updated.
Persisting delays in DBT payments even after three years of implementation
of DBT is defeating the purpose of DBT to ensure timely payments.
On being pointed out the Government replied (May 2022) that efforts were
always made to disburse the pension on 7th of each month and in maximum
months it was disbursed by the due date. In few months there were delays due
to technical issues like jamming of files with heavy transactions and delays
caused by district offices in pushing the payment files in NSAP-PPS.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Reply in itself corroborates that delay was caused due to delay in pushing the
payment files from districts. The step of transferring the funds to districts
accounts and taking it back into SNA may be avoided to curb the delay.
2.2.7.3 Existing duplicates even after implementation of DBT
According to para 12.1 of the guidelines for implementation of pension
schemes issued (April 2014) by the State Government, a person can avail
benefit of only one pension scheme at a time operational in the state, whether
it is central or State Government scheme. Further, point number 7 of
guidelines stipulates that the concerned applicant will have to open his own
savings account or post office account immediately after the sanction of
pension, where the pension will be paid. And the primary objective of the
DBT was to curb the pilferage and duplication.
Audit examination revealed that a beneficiary getting pension under
IGNOAPS was also being benefitted under other pension schemes of State.
During test check in districts, 848 cases were found where two pensions were
sanctioned against one Aadhaar number. Further, scrutiny also revealed that in
54 out of the 848 cases the bank account number was also found same. It was
noticed that two pensions under the single scheme (IGNOAPS) or in two
different schemes (one scheme IGNOAPS) were sanctioned to the same
beneficiary against two application numbers with minor modifications in the
personal details like applicant name and husband/father’s name and address
etc. District wise details of beneficiaries and multiple payments against one
Aadhaar number in a month are shown in Table 2.2.3:
Table 2.2.3: District wise details of beneficiaries with same Aadhaar number
Sl. District Total DBT No. of beneficiaries Percentage of Avoidable
No. IGNOAPS having two pensionary duplicate against pension
beneficiaries benefits on same total number payment
Aadhaar number (In ` lakh)
1 Baloda 34581 0.56
18 0.05
Bazar
2 Bilaspur 46597 0 0.00 0
3 Dhamtari 18245 52 0.29 1.68
4 Jashpur 24443 226 0.92 4.74
5 Kondagaon 14454 4 0.03 0.09
6 Korba 28089 174 0.62 6.15
7 Korea 13217 60 0.45 2.59
8 Narayanpur 4087 16 0.39 0.66
9 Raigarh 61574 298 0.48 9.6
Total 245287 848 0.35 26.07
(Source: As per information provided by the Department (NSAP-PPS-July 2021) and
compiled by audit)
As can be seen from above table the percentage of cases of Aadhaar
duplications in the districts varied between zero and 0.92 per cent. This
constituted 0.35 per cent of total beneficiaries (2,45,287) in these districts.
This also reflects the lack of adequate controls in online platform of NSAP as
the system failed to prevent the duplication. Further, these duplicates were
29
Compliance Audit Report for the year ended 31 March 2021
also generated as a MIS report by the NSAP-PPS but the Department failed to
remove these duplicates which resulted in avoidable pension payments
amounting to ` 26.07 lakh.
On being pointed out the Government accepted the fact and replied
(May 2022) that database has been upgraded and now while entering data,
NSAP database does not accept same Aadhaar or account number. Removing
of duplicate Aadhaar was almost done and at present only 194 duplicate cases
were pending.
2.2.7.4 Lack in digitization of data of all beneficiaries
In April 2014, instructions were issued by the Secretary, Social Welfare
Department, Government of Chhattisgarh for smooth operation of various
pension schemes. According to the paragraph 3.4 of above instructions,
“Applications will be entered in the computer/online database in the
prescribed format. Online entry will be required in the online monitoring
software.” In this regard, vide letter dated 23.12.2016 instructions were issued
to complete the digitization of beneficiaries under pension schemes by
December 2016. Further, first and foremost need for enabling the DBT was
the digitization of data.
During test check of records at office of Director, Social Welfare Department,
Raipur it was noticed that online data entry of all beneficiaries under
IGNOAPS had not been completed in NSAP-PPS till the date of audit
(October 2021). The status of digitization of data of beneficiaries under the
scheme is shown in Table 2.2.4:
Table 2.2.4: District wise details of digitization of beneficiaries as on July 2021
Sl. District Number of No of beneficiaries Number of Percentage
No. beneficiaries whose details beneficiaries (data not
under entered in NSAP whose data digitized)
IGNOAPS MIS not available
in NSAP MIS
1 Baloda Bazar 34947 34581 366 1.05
2 Bilaspur 46918 46597 321 0.68
3 Dhamtari 18390 18245 145 0.79
4 Jashpur 24772 24443 329 1.33
5 Kondagaon 14506 14454 52 0.36
6 Korba 30936 28089 2847 9.2
7 Korea 13240 13217 23 0.17
8 Narayanpur 4092 4087 5 0.12
9 Raigarh 62821 61574 1247 1.99
Total 250622 245287 5335 2.13
(Source: As per instructions issued by the Department vide letter dated 12.08.2021)
It is evident from above table that till July 2021, details of total 5,335
(2.13 per cent) beneficiaries have not been entered in the online portal. The
percentage of non-digitization ranged between 0.12 and 9.2 per cent in
different districts. As details of these beneficiaries have not been entered in the
database, the DBT payment to these beneficiaries cannot be ensured. This
30
Chapter II: Compliance Audit of General, Social and Economic Sectors
indicates failure of the monitoring mechanism to complete data digitization in
a timely manner for DBT implementation.
On being pointed out the Government replied (May 2022) that sanctioning of
pension is a continuous process and is running through out months in all the
districts. Digitization work has been almost completed in all districts.
Instructions have been issued to district offices to complete the digitization of
all beneficiaries. 100 per cent digitization will be ensured at the earliest.
2.2.7.5 Status of availability of Aadhaar, its verification and
seeding with bank accounts
As per point no. 7 of the guidelines issued by the State Government vide
circular 28.04.2014, as far as possible, the pension will be paid to the
beneficiaries through DBT directly in their account. Online platform for
disbursement of pension (NSAP-PPS) was also developed to enhance
efficiency in sanction, payment and disbursement of pension process by
MoRD. The basic requirements for implementing DBT were the digitization
of data of beneficiaries, enrolling the Aadhaar and opening of bank accounts
etc. Aadhaar seeding of bank accounts was also desirable as an important step
for avoiding duplication of beneficiaries and for a real time DBT
implementation. According to the DBT instructions issued, the Aadhaar
number based DBT transfer was to be enhanced. As an exception, in rural
areas where there are no banks/post offices within a distance of 10 km, cash
pension can be paid in the meeting of Gram Panchayat.
In pursuance of the provisions of section 7 of the Aadhaar Act, 2016, Ministry
of Rural Development notified (February 2017) that an individual desirous of
benefit under NSAP scheme was required to furnish proof of possession of
Aadhaar or undergo Aadhaar authentication.
The position of Aadhaar numbers available, verified Aadhaar and seeding with
bank accounts in districts are as shown in Table 2.2.5:
Table 2.2.5: District wise details of availability of Aadhaar number, verification
and seeding
Sl. District Total Aadhaar Aadhaar Aadhaar Aadhaar Aadhaar Aadhaar
No. Beneficiary Available availability Verified Verified seeded seeded with
under per cent per cent with bank A/C
IGNOAPS bank A/C per cent
1 Balodabazar 34581 33810 98 32868 97 11529 34
2 Bilaspur 46597 39319 84 38437 98 27911 71
3 Dhamtari 18245 16367 90 15624 95 7866 48
4 Jashpur 24443 23626 97 20374 86 7680 33
5 Kondagaon 14454 13800 95 13251 96 9519 69
6 Korba 28089 27014 96 24976 92 16584 61
7 Korea 13217 12025 91 11871 99 7548 63
8 Narayanpur 4087 2704 66 2483 92 1635 60
9 Raigarh 61574 60476 98 59475 98 48220 80
Total 245287 229141 93 219359 96 138492 60
(Source: Information as per the Department’s letter dated 12.08.2021)
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Compliance Audit Report for the year ended 31 March 2021
From above table it is evident that in different districts the percentage of
availability of Aadhaar ranged between 66 and 98 per cent. Availability of
Aadhaar in Narayanpur (66 per cent) and Bilaspur (84 per cent) was below
90 per cent while in other districts it was above 90 per cent. Verification of
available Aadhaars ranged between 92 and 99 per cent. It can also be seen that
percentage of Aadhaar seeding with bank accounts ranged between 34 and
80 per cent. Thus, requirement of obtaining Aadhaar and its authentication
process for all beneficiaries was yet to be achieved.
Use of Aadhaar simplify the process of identifying the person and provides
increased transparency to the Government in implementation of its scheme.
Non-availability, authentication and seeding of bank account with Aadhaar
involves the risk of existence of duplicate and fake beneficiaries and reduces
the transparency in implementation of scheme to that extent.
On being pointed out the Government replied (May 2022) that as per
guidelines issued by the State Government/GoI, collection of Aadhaar in
portal is mandatory but seeding of Aadhaar with bank depends on bank and
account holders. Maximum number of available Aadhaar have been verified.
Efforts are being made to encourage the beneficiaries for Aadhaar seeding
with bank account.
Availability of Aadhaar seeded bank accounts would enable the desirable
Aadhaar based DBT payment by accurate targeting of beneficiaries and can be
a major tool in de-duplication of beneficiaries. Department had verified
Aadhaar in 89 per cent cases but Aadhaar seeding was done only in
60 per cent cases. Pending Aadhaar number may be obtained and verification
may be completed.
2.2.7.6 Beneficiaries could not get pension at enhanced rates
after attaining the age of 80 years
According to Para 11.1 of the guidelines for implementation of IGNOAPS
issued by the State Government, beneficiaries attaining the age of 80 years
under other schemes (Indira Gandhi National Widow Pension (IGNWPS) and
Indira Gandhi National Disabled Pension (IGNDPS)) were to be brought
under Indira Gandhi National Old Age Pension scheme (IGNOAPS). Under
the IGNOAPS, the beneficiaries attaining the age of 80 years are entitled for
pension at enhanced rate of ` 650 per month.
Further, para 11.2 and 11.3 of State guidelines also stipulated that the
beneficiaries of two state schemes Samajik Suraksha pension Yojana (SSPY)
and Sukhad Sahara Yojana (SSY), with similar eligibility criteria of BPL as
for sub schemes of NSAP with relaxed age and other conditions, were to be
transferred to IGNOAPS after attaining the age of 60 years.
Audit noticed that the beneficiaries of IGNDPS and IGNWPS after attaining
the age of 80 years were not transferred into IGNOAPS, hence they could not
get the pension benefits at enhanced rates. Similarly, in SSPY and SSY
beneficiaries of 80 years and above were not getting the enhanced pension due
to non-transferring them into IGNOAPS as envisaged in the guidelines. The
details of beneficiaries of 80 years and above under different schemes are as
shown in Table 2.2.6:
32
Chapter II: Compliance Audit of General, Social and Economic Sectors
Table 2.2.6 : District wise details of beneficiaries of age 80 years and above
Sl. District Beneficiaries of age 80 Beneficiaries of age 80 years and above (Pension
No. years and above under not enhanced)
IGNOAPS (getting
enhanced pension)
IGNOAPS IGNDPS IGNWPS SSPY SSY Total
1 Baloda Bazar 4586 3 187 1020 191 1401
2 Bilaspur 4422 2 1 219 15 237
3 Korba 5656 13 84 1132 102 1331
4 Dhamtari 1467 7 39 589 55 690
5 Jashpur 1701 1 58 584 22 665
6 Kondagaon 1599 2 0 94 12 108
7 Korea 1948 2 29 358 19 408
8 Narayanpur 408 0 0 0 0 0
9 Raigarh 6715 8 88 990 80 1166
Total 28502 38 486 4986 496 6006
(Source: As per information provided by the Department (NSAP-PPS-July 2021) and
compiled by Audit.)
It is evident from table above that there were 524 beneficiaries under
IGNWPS and IGNDPS and 5482 beneficiaries of SSPY and SSY in the nine
districts who were 80 years and above age but not transferred to IGNOAPS.
Thus, 6006 beneficiaries (17.4 per cent of total 34508) of 80 years and above
in these nine districts were kept devoid of the pension benefits at enhanced
rates. These beneficiaries were continuing with the pension at normal rate
which was less than the rates for 80 years and above.
On being pointed out the Government replied (May 2022) that the beneficiaries
of IGNWPS and IGNDPS would be transferred into IGNOAPS. But the state
schemes SSPY and SSY have the beneficiaries of destitute ('Nirashrit') category
who would not be eligible for transfer into IGNOAPS. However, other
beneficiaries of SSPY and SSY who are eligible for IGNOAPS will be
transferred into IGNOAPS for ensuring pension at enhanced benefits.
2.2.7.7 Continued disbursement of pension even after death of
beneficiaries
According to para 4.5 of guidelines issued vide circular dated 28.04.2014 by
Social Welfare Department, Government of Chhattisgarh, payment of pension
amount was to be stopped immediately on receipt of information about the
death of the pensioner. As per the guidelines, Sarpanch of the Gram Panchayat
was required to inform the Janpad Panchayat soon after the death of any
beneficiary.
Audit noticed that after death of a beneficiary the pension was not stopped
immediately. During audit, 109 cases were test checked to assess the delay in
stopping the pension. It was found that in eight cases pensions were stopped
timely, in 39 cases it was stopped with delay up to six months, in 16 cases it
delayed from six months to one year, in 13 cases it was delayed from one year
to two years, in eight cases it was delayed from two years to three years while
in four cases it was delayed up to four years. In case of five beneficiaries the
33
Compliance Audit Report for the year ended 31 March 2021
pensions have not been stopped even after a lapse of seven to 51 months from
their death. In case of 16 beneficiaries the date of death was not mentioned
hence the delay in discontinuation of pension could not be ensured. This
shows failure of the Department in effective monitoring and discontinuation of
pension immediately after the death of a beneficiary and resulted into an
excess payment of ` 3.65 lakh. The main reason of the delay in
discontinuation of the pension was delayed receipt of the information from
Gram Panchayats.
On being pointed out the Government replied (May 2022) that the delay in
stopping the pension was mainly due to delayed receipt of the information
from Gram Panchayat and absence of information from bank/post office where
pension was not drawn for three months.
2.2.7.8 Non-entering of new application details in NSAP-PPS
before sanctioning resulted in ineffective monitoring
As per the NSAP guidelines of MoRD, GoI as well as state guidelines and
existing mechanism, the applications are needed for enrollment of a new
beneficiary. In this regard, specimen application form in local language was to
be made available widely at free of cost to the beneficiaries. It was further
emphasised that the application form was to be made available for
downloading from the website. After receipt of applications, the Gram
Panchayats and Janpad Panchayats were required to capture the details of
receipt of pension applications in a register and enter the details thereof into
the online monitoring software. This online entry was to be done at Janpad
Panchayat level. Further, after receipt, the processing of applications (starting
from the time of receipt till sanction or rejection) was not to exceed sixty days
and in the event of being eligible for pension, the pension amount will be
sanctioned from the month of registration of the application.
Audit noticed that the Department was providing the application forms
physically at free of cost to the beneficiaries at District Social Welfare offices,
Janpad Panchayats as well as Gram Panchayats. However, download section
of the website of the Social Welfare Department did not contain any tab for
downloading the application form. Further, facility of online submission of
application for pension directly through portal or website of the Department
instead of physical submission of application forms was not made available to
beneficiaries.
Audit further observed that after receipt of the application from beneficiary,
the Gram Panchayats forwarded those applications to Janapad Panchayats. The
process of verification and sanction/rejection of applications was completed at
Janpad Panchayat level. Audit noticed that the register for recording the details
of receipt of application was not being maintained at Janapd Panchayat level
and the application forms were not entered into NSAP-PPS immediately on
receipt. The process, starting from the receipt of application till sanction or
rejection was being completed manually and the details of only sanctioned
applications were being entered into NSAP-PPS. However, the documents
attached with the applications to establish the eligibility of the applicant such
as photographs, age certificate, residence certificate etc. were also not
uploaded to NSAP-PPS. Thus, in the absence of online trail for receipts of
application, processing of applications including the grounds of sanction or
34
Chapter II: Compliance Audit of General, Social and Economic Sectors
rejection, start of pension etc. the timeliness in sanction of pension and
effectiveness of the process could not be ensured.
In this regard, Audit test checked 62 physical applications and noticed delays
in sanctioning of pension beyond stipulated period of two months. During
scrutiny, Audit noticed that in 14 cases there was no delay, in 11 cases delay
was up to one month, in 13 cases delay was from one to six months, in
11 cases delay was from six months to one year and in 2 cases delay was
beyond one year. While in 11 cases, the application forms did not bear the
application date, hence delay could not be ensured. After sanction, further
delays from one to three months in starting of pension were also noticed.
Thus, the objective of implementing the pension programme as envisaged in
the guidelines could not be fulfilled and delays in sanction of pension and
further failure in starting the pension from effective month, deprived the
beneficiaries of the pension benefits for those delayed months despite being
eligible.
On being pointed out the Government replied (May 2022) that targeted
beneficiaries belong to very sensitive group. They will need third party to fill
up online form. In such cases suspicious entries are also possible. So, after
sanction, details of only eligible beneficiaries were entered in NSAP-PPS.
Instructions are being issued for uploading the documents. Delays in
sanctioning and starting the pension happened mainly due to Covid-19
pandemic which restricted the functioning of offices. Further, possibility of
uploading details of all received applications (whether sanctioned or rejected)
at later stages will be explored.
Government further replied that, separate download section for application
form on website of the Department will be provided. At present applying
online at NSAP-PPS or website of SWD is not available. Possibilities for the
same are being explored.
The matter of creation of front-end capture of application forms and
documents may be taken with MoRD and NIC.
2.2.7.9 Release of pension to ineligible beneficiaries
As per eligibility criteria the person of 60 years or above having name in BPL
list and resident of Chhattisgarh was eligible to receive pension under
IGNOAPS.
However, out of nine districts, Audit noticed in Raigarh district that
36 beneficiaries (total beneficiaries in district-61,574) having age less than
60 years, were sanctioned and disbursed pension under IGNOAPS. These
beneficiaries were not eligible as per age criteria. The Department did not
provide the application forms of these beneficiaries and related documents to
establish their eligibility.
On being pointed out the Government replied (May 2022) that now database
has been upgraded. So, if age below 60 years is entered it reflects the message
of below age. The cases are being scrutinised and pension distribution will be
discontinued if found to be of lower age.
35
Compliance Audit Report for the year ended 31 March 2021
2.2.7.10 Pro-active identification of beneficiaries
As per guiding principles of the scheme the persons eligible for
pensions/assistance under this scheme belong to the most vulnerable category
of society. Therefore, it becomes the moral duty of the implementing agency
to ensure least burden on them, in the identification, sanction and verification
processes.
In this process it may be ensured that onus is not on the beneficiary to prove
her/his eligibility. The implementing agency should also ensure coverage on
special priority for the vulnerable groups like manual scavengers, persons
affected by leprosy, AIDS, Cancer, TB and other serious ailments, bonded
labourers, families affected due to natural or manmade disaster etc.
Transgender, Dwarfs who fulfill the eligibility criteria must also be included.
During audit it was observed that the Department did not take any pro-active
effort to identify the eligible beneficiaries such as manual scavengers, persons
affected by leprosy, bonded labourers etc. who could be covered under
IGNOAPS.
On being pointed out the Government replied (May 2022) that for the welfare
of mentioned category, other related departments of the State Government are
implementing specific schemes. So, to avoid duplication and to reduce
financial burden, the Department did not take any pro-active effort. However,
efforts are being taken to cover vulnerable groups and instructions in this
regard are being issued to district offices.
Department may organize awareness generation programme and liaison with
other departments of the State Government to reach out to such eligible
beneficiaries.
2.2.7.11 Data on DBT transactions were not reflected on the State
DBT portal
In order to enable adoption and understanding of the DBT framework at the
State Level and to act as a nodal point for activities and matters related to
DBT operations, coordinating the implementation of DBT in various schemes,
the State DBT Cell was constituted. Further State DBT Committee within the
Social Welfare Department was also formed for monitoring and
implementation of DBT under NSAP. Primary functions of the State DBT Cell
were to analyze and identify DBT applicable schemes and programs being
implemented at the State Level. IGNOAPS was one of the identified schemes
for DBT. Further, in order to supplement the activities for the State DBT Cells
through an electronic platform, the Central DBT Portal and State DBT Portal
were made available as an independent and configurable solution for the State
Governments to manage the DBT information. As per the guidelines of DBT,
the details of progress of DBT under the scheme were to be updated on State
DBT Portal.
Audit noticed that the DBT data relating to IGNOAPS were not being updated
on the State DBT Portal. Data pertaining up to 2019-20 was available on State
DBT portal but no data for years 2020-21 was made available on the State
DBT Portal.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
On being pointed out the Department replied that the State DBT Portal is not
integrated with NSAP-PPS and payment module. The details of DBT data are
to be entered manually and for making entries on portal, the access is available
only up to year 2019-20. Hence, no data for years 2020-21 and afterwards is
available on State DBT portal.
The matter of integration of State DBT Portal with NSAP-PPS and payment
module may be taken up with NIC.
2.2.8 Conclusions
The basic objectives of the DBT were ensuring electronic transfer of benefits,
minimising intermediary levels involved in benefit flow, reducing delay in
payments and curbing pilferage and duplication. After implementation of DBT
in the State, 95 per cent of pension payments were made through DBT in the
Indira Gandhi National Old Age Pension Scheme in nine test checked districts.
Aadhaar number had been obtained in 93 per cent cases however, the
verification of Aadhaar was pending in four per cent cases. Digitization of
data required for DBT transfer was not completed in respect of
5,335 (2.13 per cent) beneficiaries. There were 6,006 beneficiaries of 80 years
and above who were not getting the pension at enhanced rates. There were
delays in discontinuation of pension after death of a beneficiary. There were
cases of delay in sanction and disbursement of pension to beneficiaries.
Instances of duplicates beneficiaries were noticed in audit. Application form
for pension was not easily downloadable from the website of the Department
and facility of filling the forms online was not made available to beneficiaries
those who want to apply online. Application forms were not being entered into
NSAP-PPS immediately after receipt rather the details of eligible applicants
were entered without uploading the supporting documents such as
photographs, age certificate, residence certificate etc., which resulted in
non-monitoring of sanctioning process through online portal.
2.2.9 Recommendations
1. Digitization of remaining 2.13 per cent beneficiaries should be
completed at the earliest.
2. DBT payments may be ensured by 7th of each month and for this a
suitable mechanism should be evolved to reduce the delays in
transferring the funds to districts and taking it back into SNA or do
away with this step.
3. Verification of remaining duplicates should be done and removed
accordingly, in order to check them from getting double benefits and
necessary validation controls may be developed in the IT system of
NSAP-PPS to prevent the sanctions of multiple pensions to single
beneficiary.
4. The Department should endeavor to get the Aadhaar number of all
remaining beneficiaries and pending cases of Aadhaar verification
may also be completed in a time bound manner.
5. Beneficiaries of age 80 years or above and eligible to get pension
under IGNOAPS should be given the pensionary benefits at
enhanced rates as envisaged in the guidelines.
37
Compliance Audit Report for the year ended 31 March 2021
6. Pension forms should be made easily downloadable and the facility
for online applications may also be provided. Efforts must be taken
for entry and processing of all applications (whether sanctioned or
rejected) through NSAP-PPS. The matter may be taken up with
MoRD and NIC.
38
Chapter II: Compliance Audit of General, Social and Economic Sectors
Public Works Department and Water Resources Department
2.3 Deduction of royalty charges of minor minerals
consumed in works
2.3.1 Introduction
The Public Works Department (PWD) and Water Resources Department
(WRD) are the principal agencies of the Government of Chhattisgarh
responsible for construction/improvement of roads/buildings/bridges and
irrigation projects. These departments execute the works as per the provisions
laid down under Works Department (WD) manual through contractors.
In the construction works, minor minerals such as stone, metal, sand,
moorum11 etc. are used by the contractors. The Executive Engineers (EEs)
deduct the royalty charges of minor minerals used in the works from
contractors’ running/final bills. The royalty amount so deducted is kept under
deposit head (8443 Civil Deposit-108-Public Works Deposit) of the works
department and is refunded to the contractor after the submission of Royalty
Clearance Certificate (RCC). In case of failure of submission of RCC by the
contractor, the deducted royalty amount is deposited into Mineral Resources
Department account. As per the WD Manual, extraction of materials and levy
of royalties on construction materials are governed by the Chhattisgarh Minor
Mineral Rules, amended from time to time. The Mineral Resources
Department and Finance Department of Chhattisgarh had issued instructions12
to all the works departments to ascertain that the minor minerals used in the
construction works are brought by the contractor from an authorised13 source
and contractor submits RCC issued by District Mining Officer (DMO) before
payment of final bill.
Compliance Audit of two works departments viz. PWD and WRD was
conducted with the focus on deduction of royalty charges of minor minerals
consumed in works, in accordance with directions issued by Mineral
Resources Department and Finance Department, and non-compliance of the
same are commented in audit.
2.3.2 Royalty charges deducted by works department
The details of royalty charges recovered from contractors’ bills and paid into
Mineral Resources Department account by works departments during 2019-20
to 2021-22 is as detailed in Table 2.3.1.
11
Moorum is a type of soil, mostly used for construction purposes. It is deep brown or red in
color used in plinth filling, road pavements, backfilling in trenches, footing pits.
12
Vide letters dated 18.10.2001 and 13.10.2004 of Mineral Resources Department; dated
28.12.2002 of Finance Department and letter dated 18.02.2015 and 03.06.2016 of
Director, Geology and Mining of Government of Chhattisgarh.
13
Authorised sources means minerals obtained by the contractor for use in government
work should be procured from approved quarries after submission of valid transit pass
39
Compliance Audit Report for the year ended 31 March 2021
Table 2.3.1: Royalty charges deducted by works department
(` in crore)
Sl. Department Year
No.
2019-20 2020-21 2021-22
Royalty Royalty paid Royalty Royalty Royalty Royalty paid
deducted to Mineral deducted paid to deducted to Mineral
from Resources from Mineral from Resources
contractors Department 15 contractors Resources contractors Department
bills14 bills Department bills
01. PWD 78.56 9.09 109.21 21.49 163.35 10.97
02. WRD 18.75 19.05 19.24 18.33 10.28 10.99
Total 97.31 28.14 128.45 39.82 173.63 21.96
(Source : PWD website and Engineer-in-Chief office, WRD)
Out of total ` 399.39 crore royalty deducted from contractors’ bills, only
` 89.92 crore was deposited into Mineral Resources Department account.
2.3.3 Audit objectives
The Compliance Audit was conducted with the following audit objectives:
Whether the provisions in the contracts were compliant to the Act, Rules
and directions issued by the State Government.
Whether deduction of royalty from contractor’s bills was made as per
provisions of Act, rules and government directions.
2.3.4 Audit criteria
The audit criteria was derived from the following sources-
Works Department manual
Contract documents
Chhattisgarh Minor Mineral Rules 2015 (CG MMR,2015)
Mines and Minerals (Development and Regulation) Act, 1957 (MMDR
Act)
Circulars issued by Chhattisgarh Mineral Resources Department/Finance
Department on recovery of royalty charges of minor minerals
Gazette notifications prescribing royalty rates of minor minerals
Orders issued by district Collectors/District Mining Officers on market
value of minor minerals
2.3.5 Scope of Audit
The Compliance Audit covered audit of all EE offices and seven Apex 16 level
units of PWD and 18 EE offices of WRD, covering the period 2019-20 and
2020-21. Audit scrutinised 285 out of 964 contracts of PWD and 41 out of
149 contracts of WRD in which final bills were paid during audit period. The
14
Royalty deducted from contractor’s bill has been kept under 8443-Civil Deposits-108-
Public Works Deposit account with the division.
15
Royalty need to be paid in to Mineral Resources Department account 0853-Non-ferrous
mining and metallurgical industries-Other receipts.
16
Engineer-in-Chief (E-in-C), Chief Engineer (CE) and Superintending Engineer (SE)
offices.
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Compliance Audit was conducted during October 2020 to December 2021.
Five highest value contracts finalised during audit period in each PWD
division and three highest value contracts in each WRD division were selected
for detailed scrutiny.
2.3.6 Audit findings
Rule-71 of CG MMR, 2015 and clause-21 (5) of CG Mines and Minerals
(Development and Regulation) Act, 1957 provide for recovery of penalty on
account of unauthorised extraction and transportation of minor minerals as
decided by District Collector/Mining officer. The Director, Geology and
Mining directed (February 2015 and June 2016) the District Collectors to issue
necessary directions to the works department for deduction of royalty and
market value of minor minerals along with District Mineral Foundation Fund
(DMF) from the contractors’ bills and to ensure obtaining RCC before
payment of final bill to contractors on completion of work. These orders were
issued with reference to the orders issued by the State Government under
Mineral Resources Department (October 2001 and October 2004) and Finance
Department (December 2002).
Rule-71 (A) of CG MMR, 2015, amended in June 2020 stipulates that the
concerned works department should deduct the amount equivalent to the
market value of minor minerals used in construction work done through
contractors from the bills of contractors. Contractors may obtain RCC through
Collector concerned by submitting an application to mining office along with
valid transit passes of the mineral used, after which amount deducted by the
works department may be returned and final bills settled to contractors. It
further provided that if the contractors fail to submit valid transit passes of
minor minerals used in construction works, action shall be taken under section
21 to 23-B of the MMDR Act, 1957.
The audit findings on non-compliance of the above mentioned orders of the
Mineral Resources Department and CGMM Rules, 2015 are discussed in
succeeding paragraphs.
2.3.6.1 Non amendment in contract provisions
As per standard contract document issued (31 October 2005) by PWD, the
contractor shall pay all quarry, royalty charges etc. If the contractor fails to
produce the RCC from concerned department, then the EE shall deduct the
royalty charges from the bills and keep in deposit head (8443- Civil Deposit-
108-Public Works Deposit), which shall be refunded to the contractor on
production of RCC from the concerned department. If he fails to produce the
RCC within 30 days of submission of final bill, then royalty charges kept
under deposit head by the EE shall be deposited to the concerned department
and his final bill payment shall be released17. Similarly, as per contract
document prescribed by WRD, the royalty charges for material shall be paid
by the contractor as per rules, which will not be refundable to contractor.
As per directions issued (2001 to 2004) by the Mineral Resources Department
and Finance Department, and the orders issued (2015-16) by Director,
17
In ADB project works, the clause for royalty stipulates that the contractor shall pay all
royalties, rent and other payments for natural materials obtained from outside the site.
41
Compliance Audit Report for the year ended 31 March 2021
Geology and Mining, the final bill of the contractor was to be paid only after
submission of RCC by the contractor against the minor mineral consumed in
the work.
Subsequently, the State Government amended the CG MMR vide Gazette
notification dated 26 June 2020 incorporating rule-71(A), which stipulates
deduction of market value of minor minerals used in construction work from
the bills of contractors. It further provided that amount deducted by the works
department may be returned and final bills settled to contractors after
contractor obtained RCC for the mineral used from the concerned Collector.
Audit observed that despite the above orders and amendment in rules relating
to deduction of royalty and payment of final bill, the royalty clauses in the
contract documents of both works departments did not include such provisions
conforming to government orders. On the contrary, the royalty clauses in
PWD contracts stipulate that the EE shall pay the final bill and deposit royalty
charges in to concerned department, if the contractor fails to produce RCC
within 30 days of submission of final bill while, there was no such provision
for withholding payment of final bill in case of non-submission of RCC in
WRD contracts.
Thus, the royalty clause in the contract documents was not revised by both
PWD and WRD in line with the directions issued by the Mineral Resources
Department and Finance Department. The royalty clause was not revised
despite amendment to CG MMR by the State Government in June 2020.
Further, Audit also noted lack of standard royalty clause in the contract
documents of various Divisions of works departments of the State
Government.
Work orders in 8,417 agreements (PWD : 8,134 and WRD : 283) were issued
by works departments after June 2020 without revising royalty clauses as per
amendment of CG MMR 2015 made by State Government.
On being pointed out in audit, the Engineer-in-Chief (E-in-C), PWD did not
furnish reply (June 2022) and the E-in-C, WRD stated that the matter is being
forwarded to Government for further directions.
The fact remains that appropriate action has not been taken by the works
departments to amend the contract provisions.
2.3.6.2 Irregular payment of final bills in agreements without
obtaining royalty clearance certificates
Scrutiny of 285 agreements18 in 51 PWD Divisions revealed that the
contractors had submitted RCCs in 76 agreements. In 209 agreements
(48 divisions), the contractors had not submitted RCCs and the final bills
amounting to ` 368.91 crore was paid, as detailed in Appendix 2.3.1,
violating the orders issued by Finance Department and Mineral Resources
Department. Out of 51 divisions, five19 divisions had complied with the
18
The period of agreements were - 2012-13 : 3, 2013-14 : 10, 2014-15 : 16, 2015-16 : 33,
2016-17 : 51, 2017-18 : 58, 2018-19 : 76, 2019-20 : 27 and 2020-21 : 11, final payments
were made during 2019-20 and 2021-22.
19
EEs, PWD (B&R) Division-Champa, Korba, Pendra, Raigarh under CE-Bilaspur zone
and EE, PWD (Bridge) Division-Ambikapur under CE-Bridge zone, Raipur.
42
Chapter II: Compliance Audit of General, Social and Economic Sectors
directions issued by the State Government and recovered the market value of
minor minerals in case of non-submission of RCCs by the contractors and
remaining 46 divisions did not comply with the directions issued by the
Mineral Resources Department/Finance Department.
Similarly, scrutiny of records in WRD divisions revealed that in eight out of
41 agreements20, the contractors had submitted RCCs. The contractors, in two
agreements of Kelo Project Survey division had submitted RCCs for partial
quantity and royalty charges for the remaining quantity were recovered as per
market rates. In 16 divisions directions issued by the Mineral Resources
Department/Finance Department was not complied and payment of final bills
amounting to ` 24.01 crore was made in 33 agreements though RCCs were not
submitted by the contractors, as detailed in Appendix 2.3.2.
2.3.6.3 Loss of revenue due to non-deduction of market value of
minor minerals from the contractors
The Director, Geology and Mining issued order (February 2015 and
June 2016) to all District Collectors for issuing instructions to deduct the
royalty and market rate of minerals along with the DMF from the contractors’
bills in respect of minerals used in government works so that only after
submission of RCC, payment of final bill can be made to contractor by the
works departments.
Audit noticed that the Collectors of only 1021 out of 28 districts in the State
had issued the orders within a year specifying the market rate of minerals and
directed the works departments for deduction of market value of minor
minerals along with royalty and DMF and ensure submission of RCCs by
them. In eight22 districts, the orders were issued after commencement of audit
between August 2020 to August 2021, while in remaining nine23 districts the
orders were issued with a delay ranging from one to five years after issue of
orders by Director, Geology and Mining. In Raipur district, the Collector has
not issued orders for recovery of market value of minor minerals till date
(May 2022). It was informed to Audit that a Committee has been constituted
under the chairmanship of District Collector to decide the market rates of
minerals. At present market rate equivalent to four times of royalty was being
charged.
Audit examined 242 agreements in 62 Division of PWD and WRD and
noticed non-realisation of market value of minor minerals of ` 307.09 crore in
203 agreements due to non-deduction of market rates of minor minerals used
in the construction works for which RCCs were not submitted by the
contractors as detailed below.
20
The period of agreements were – 2011-12 : 1, 2013-14 : 3, 2014-15 : 2, 2015-16 : 2,
2016-17 : 5, 2017-18 : 7, 2018-19 : 11, 2019-20 : 4 and 2020-21 : 6, final payments were
made during 2019-20 and 2021-22.
21
(i) Bijapur (ii) Jashpur (iii) Korba (iv) Korea (v) Raigarh (vi) Surajpur, (vii) Surguja (viii)
Janjgir-Champa (ix) Durg and (x) Rajnandgaon
22
(i) Bemetera (ii) Baloda Bazar (iii) Dhamtari (iv) Garyaband (v) Kawardha (vi)
Mahasamund, (vii) Narayanpur and (viii) Balrampur-Ramanujganj
23
(i) Dantewada (ii) Balod (iii) Sukuma (iv) Kanker (v) Kondagaon (vi) Bilaspur (vii)
Gorela-Pendra-Marwahi (viii) Bastar (ix) Mungeli
43
Compliance Audit Report for the year ended 31 March 2021
2.3.6.3 (i) Non-realisation of market value of minerals due to delay
in issue of market rates
Scrutiny of records revealed that payment of final bills to contractors in
66 agreements under 20 Divisions (PWD-18, WRD-2) in 1224 districts were
made by the works department without obtaining RCCs from the contractors.
In the absence of market rates, only royalty charges 25 amounting to
` 38.74 crore (PWD- ` 38.46 crore, WRD- ` 0.28 crore) were deducted from
the contractors’ bills for the minor minerals used in the government works.
Thus, delay in issue of market rates resulted in non-realisation of market value
of minerals amounting to ` 137.61 crore for which RCCs were not submitted
by the contractors, as detailed in Appendix 2.3.3.
2.3.6.3 (ii) Non-realisation of market value despite orders of district
Collectors on market rates
The Collectors in 2126 districts issued orders specifying the market rate of
minor minerals and directed the EEs of works department to recover market
value of minor minerals in case of non-submission of RCCs by the
contractors.
Audit scrutiny revealed that in 137 agreements (PWD-119 in 35 divisions and
WRD-18 in 12 divisions) in these 21 districts the final bills of contractors
were paid by the EEs without complying with the orders of District Collectors
and market value of minor minerals was not recovered although RCCs were
not submitted by the contractors.
This resulted in non-realisation of market value of minor minerals amounting
to ` 169.48 crore (PWD - ` 158.71 crore and WRD - ` 10.77 crore), as
detailed in Appendix 2.3.4 and 2.3.5.
In the absence of RCCs in above cases, procurement of minerals for use in the
government work by the contractor from a valid source cannot be ascertained
and the possibility of unauthorised transportation and usage of mineral and
consequent leakage of government revenue could not be ruled out.
On being pointed out in audit, the E-in-C, PWD did not furnish reply
(June 2022) and the E-in-C, WRD stated that the matter is being forwarded to
Government for further directions. The EEs of PWD divisions stated that
royalty charges have been recovered at rates notified in Gazette as per
agreement provisions.
The reply of EEs of PWD is not acceptable as the market value of minerals
consumed in the works was not recovered contrary to the orders issued by
State Government and District Collectors which resulted in loss of revenue to
State Government.
24
Bastar, Balodabazar, Bemetera, Dhamtari, Gariyaband, Kawardha, Kanker, Mahasamund,
Narayanpur, Raipur, Balrampur-Ramanujganj and Sukuma
25
Royalty rates applicable for minerals taken from the sanctioned quarry lease as per
Gazette notification dated 23 March 2018 : Metal-` 130 per cum, sand-` 50 per cum and
moorum-` 50 per cum; earlier as per Gazette notification dated 31 December 2012 :
Metal-` 103 per cum , sand-` 20 per cum and moorum-` 20 per cum
26
Bastar, Balod, Balrampur-Ramanujganj, Bijapur, Bilaspur, Balodabazar, Durg, Dantewada,
Jashpur, Jangir-Champa, Kawardha, Kanker, Korba, Korea, Kondagaon, Mungeli,
Raigarh, Rajnandgaon, Surguja, Surajpur and Sukuma
44
Chapter II: Compliance Audit of General, Social and Economic Sectors
2.3.6.4 Irregular retention of royalty amount of ` 65.39 crore under
deposit head without remitting it into final head of account
As per orders issued (October 2004) by the Government of Chhattisgarh
(GoCG), Mineral Resources Department, the royalty amount deducted from
contractor’s bills should be remitted to Mineral Resources Department’s
account within one month period after the payment of final bill.
Scrutiny of records revealed that an amount of ₹ 68.63 crore was deducted
towards royalty charges under 142 agreements in 44 PWD divisions.
However, the amount of ₹ 65.39 crore deducted as royalty was kept under
deposit head (8443-Civil Deposit-108-Public Works Deposit) with the division
and was not yet deposited in the final head account of royalty (0853-Non-
ferrous mining and metallurgical industries-other receipts) under the Mineral
Resources Department despite the lapse of more than one month after payment
of final bills. The period of retention of royalty amount under deposit head
with the divisions ranged between six to 47 months, as detailed in
Appendix 2.3.6. Retention of royalty amount under deposit head with the
division for a long period and lack of monitoring could result in irregular
release of the same to contractors.
On being pointed out in audit, an amount of ` 5.34 crore in 24 agreements
were deposited into Mineral Resources Department’s account by
1127 divisions, while the EEs of other divisions stated that the same will be
deposited into Mineral Resources Department’s account at the earliest as soon
as allotments are received from Chief Engineers.
The fact remains that the EEs failed to deposit the royalty charges into Mineral
Resources Department account within one month of payment of final bill as
stipulated under agreements. The Department may fix responsibility of the
respective EEs for non-remittance of royalty to the final head of account of
Mineral Resource Department within the stipulated time.
The matter was brought to the notice of State Government (January 2022,
February 2022 and July 2022); reply had not been received (December 2022).
2.3.7 Conclusion
The State Government amended the CG MM Rules, 2015 by inserting royalty
clearance clause regarding deduction of amount equivalent to market value of
minor minerals used in construction work done through contractors in
government/semi government works departments, from the bills of contractors
and withholding of final bill until contractor submits Royalty Clearance
Certificate (RCC). The Public Works Department and Water Resources
Department did not revise the existing royalty clause as per the amended Rules
in the contracts executed.
In above two works departments, payments of final bills in 242 agreements
were made without obtaining RCCs from the contractors for the minor mineral
used in the construction works. Further, market value of minor minerals used
in the construction works without supporting RCCs in 203 agreements was not
27
Baloda Bazar, NH-Bilaspur, Dhamtari, Gariyaband, No.2-Jagdalpur, Khairagarh,
Pathalgaon, Dn.2 Raipur, No.1 Raipur, Raigarh and Division-Vidhan Sabha
45
Compliance Audit Report for the year ended 31 March 2021
deducted from the contractors. In 12 districts, under 66 agreements, delay in
issue of market rate by the Collector resulted in non-realisation of market
value of minor minerals amounting to ` 137.61 crore from the contractors in
20 divisions. Further, market value of minor mineral amounting to
` 169.48 crore was not realized under 137 agreements in the 47 divisions of
works departments despite issue of market rates by the Collectors.
In 44 PWD divisions, royalty charges of ` 65.39 crore recovered from
contractor’s bills in 142 agreements was not deposited in the final head of
account of Mineral Resources Department within one month period after the
payment of final bill. Delay ranged from six to 47 months.
Thus, non-compliance of orders issued by the Mineral Resources Department
resulted in irregular finalisation of agreements without obtaining RCCs and
loss of revenue to the State Government due to non-recovery of market value
of minor minerals used in the government works from the contractors.
2.3.8 Recommendations
1. The works departments should ensure recovery of market value of
minor minerals from the contractors along with royalty and DMF to
avoid loss of revenue to the Government, in case of non-submission
of RCC.
2. The works departments should ensure submission of RCC by the
contractor for the mineral consumed in the government works to
ensure validity of its source and prevent unauthorised transportation
and usage of minor minerals.
3. The agreement provision on deduction of royalty charges should be
amended suitably as per the prevailing orders and rules relating to
use of minor minerals.
4. The works departments should prepare a complete database of all the
works being executed and keep proper records for minor minerals
consumed in these works. Royalty should be deducted from the
contractor’s bills based on the actual quantity of mineral consumed
in the works executed.
5. An adequate monitoring mechanism should be developed to watch
the recovery of royalty charges and their timely remittance into
government account.
46
Chapter II: Compliance Audit of General, Social and Economic Sectors
Water Resources Department
2.4 Execution of Cement Concrete works as per standard
specification (Indian Standards-456:2000)
2.4.1 Introduction
Water Resources Department (WRD) is the principal water conservation
agency of the Government of Chhattisgarh (GoCG) and is responsible for
sustainable supply of water for irrigation, drinking and industrial purposes of
the State. One of the major responsibilities of the WRD is to carry out design
and construction of major, medium and minor irrigation projects. These
projects include construction of dams, barrages, tanks, anicuts and canals
which require significant quantity of concrete works. Quality control of
irrigation projects is one of the key functions of WRD.
In recent years, durability of concrete structures has become the cause of
concern to all concrete technologists. The Bureau of Indian Standards (BIS)
adopted Indian Standard Code IS 456:2000- “Plain and Reinforced Concrete
Code of Practice “which elaborates durability requirements by way of the
acceptance criteria, target strength and frequency of test. Various revisions
including compressive strength compliance requirement for concrete were
made from time to time in the above mentioned IS code.
WRD was required to ensure the quality of work particularly in execution of
cement concrete work as per standard specification (Indian Standards-
456:2000) as mentioned in various notes of Schedule of Rates (SoR). Thus,
the Compliance Audit of WRD was conducted with the focus on execution of
cement concrete works in consonance with standard specifications (Indian
Standards-456:2000) and non-compliance of the same are reported thereon.
2.4.2 Organisational Set-up
The WRD is headed by the Principal Secretary/Secretary at Government level,
while the Engineer-in-Chief (E-in-C) is the Head of the Department (HoD)
and acts as a technical advisor to the Government and is responsible for the
overall working of the WRD. The Department is divided into five zones each
headed by Chief Engineer (CE). The zones are further divided into 11 circles,
headed by Superintending Engineer (SE). Under the circles there are
62 divisions which comprise 291 sub-divisions. Divisions and Sub-Divisions
are headed by Executive Engineers (EEs) and Sub Divisional Officers (SDO)
respectively and they are responsible for implementing various
programmes/schemes and execution of the works.
47
Compliance Audit Report for the year ended 31 March 2021
Organisational Set-up of Water Resources Department
Secretary, WRD
E-in-C
CE, Mahanadi CE, CE, Hasdeo CE, Hasdeo CE, Hasdeo
Reservoir Mahanadi Basin, Bilaspur. Bango Project, Ganga basin,
Project, Godawari Bilaspur. Ambikapur.
Raipur Basin,
Raipur
11 Superintending Engineer
62 Executive Engineer
2.4.3 Financial Performance
Engineer-in-Chief is the budget controlling officer and is responsible to the
Government for planning, obtaining approval and utilisation of the funds. The
year wise allotment and expenditure of the Department during the period from
2018-19 to 2020-21 is given in Table 2.4.1:
Table 2.4.1: Year-wise Allotment and Expenditure
(` in crore)
Year Total Allotment Total Expenditure
2018-19 2403.37 1545.16
2019-20 2143.73 1092.70
2020-21 2217.75 1124.58
(Source: Information provided by E-in-C, WRD)
2.4.4 Audit Scope and Methodology
In accordance with Clause 3.3 of CAG’s Compliance Audit guidelines, top
down, risk-based approach was adopted for planning the Compliance Audit
due in the year 2020-22. Out of 80 auditable units, 6528 units, including
executing and supervisory offices, were selected for Compliance Audit. In
respect of quality control laboratories (labs), out of five labs and 11 sub-labs,
Audit conducted joint physical verification of two labs.
28
E-in-C office, five CE offices, nine SE offices and 50 divisional offices
48
Chapter II: Compliance Audit of General, Social and Economic Sectors
Audit test checked the records in the office of E-in-C, CEs, SEs and all
selected divisional offices during September 2020 to March 2021
(for the financial year ended March 2021) and from July-2021 to December
202129 (for the financial year ended March 2022). Audit covered
50 divisions and selected 152 agreements on the basis of amount of payment30
involved for concrete work in these divisions for audit scrutiny.
2.4.5 Audit Objectives
The Compliance Audit was conducted with the following audit objectives:
Whether the cement concrete works (Plain Cement Concrete: PCC &
Reinforced Cement Concrete: RCC) are being executed as per the
prescribed norms of IS Code 456:2000.
Whether adequate manpower and apparatus/machinery are available with
Department for conducting quality tests for cement concrete.
2.4.6 Audit Criteria
The execution of concrete works in various irrigation projects of WRD was
evaluated with reference to the following sources of audit criteria:
Indian Standard Code IS 456:2000 (Fourth Revision- April 2007) “Plain
and Reinforced Concrete Code of Practice” with amendments;
Schedule of Rates (2010) issued by the E-in-C, WRD Chhattisgarh,
Raipur with amendments.
Detailed Project Reports (DPRs) and detailed estimates approved by the
Chief Engineers.
Agreements and relevant records of irrigation projects.
2.4.7 Organisational set-up of Quality Control Unit
The Quality Control Units are responsible for conducting all the tests relating
to quality of work and functions under CE of the Department. Under five CEs,
there are five quality control labs each headed by Research Officer and 11 sub
labs each headed by Assistant Research Officer covering the quality control
work in 50 divisions. Research Officers carry out the tests as specified in the
IS code and submit reports on the quality of works to authorities specified.
Details are shown in diagram below: -
29
The CA Report also included findings of previous audit of Department.
30
Three highest payment cases in each division.
49
Compliance Audit Report for the year ended 31 March 2021
Organisational Set-up of Quality Control Units
E-in-C, WRD
CE, Hasdeo CE, CE, Hasdeo CE, CE, Hasdeo
Basin, Mahanadi Bango Mahanadi Ganga basin,
Bilaspur. Reservoir Project, Godawari Ambikapur.
Project, Bilaspur. Basin, Raipur
Raipur
Hasdeo Research Minimata Research Research &
Basin, officer (Hasdeo) Officer Quality
Quality M.R.P. Bango Mahanadi Control Unit
Control Unit Quality Project Godawari Hasdeo
Sakari, Control Unit. Quality Basin. Ganga Basin
Bilaspur. No. 02 control unit, Quality Water
(Bhatagoan) Sakti, control, Resources
H.Q. Raipur. Bilaspur. Raipur. Department,
Ambikapur.
Jurisdiction 10 Jurisdiction 12 Jurisdiction 09 Jurisdiction 12 Jurisdiction 07
divisions divisions divisions divisions divisions
01 Sub-labs 03 Sub-labs 02 Sub-labs 02 Sub-labs 03 Sub-labs
2.4.8 Audit findings
2.4.8.1 Shortage of manpower and testing machinery/apparatus
in Quality Control units
As per Paragraph 6.001 of Volume-I of Works Department Manual, quality
control is necessary for safety, reliability, and durability of all structures and
also for optimum use of buildings and scarce materials.
2.4.8.1 (i) Availability of manpower in Quality Control Units
The responsibility of quality control units of WRD is to ensure the quality of
irrigation project works by conducting various types of tests including tests
related to concrete works. Audit observed that in five quality control units and
11 sub-labs, the working strength of quality control official/staff was only
35 against the sanctioned strength of 81. Details are shown in Table 2.4.2:
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Chapter II: Compliance Audit of General, Social and Economic Sectors
Table 2.4.2: Shortage of manpower in Quality Control Units
Sl. Name of CE Name and No. of sub Sanction Working Shortage Shortage
No. Number of labs strength of strength of
Quality control functioning Technical of Technical
Unit under labs Officer/ Technical officer/
staff Officer/ staff (in
staff per cent)
1 CE, Hasdeo Quality Control
Basin, Unit Sakri, 1 7 7 0 0
Bilaspur Bilaspur
2 CE, Research officer
Mahanadi Control Division.
Reservoir No. 02 3 10 8 2 20
Project, (Bhatagoan,
Raipur Raipur
3 CE, Quality control
Minimata unit, Sakti
(Hasdeo),
2 10 9 1 10
Bango
Project,
Bilaspur
4 CE, Research Officer.
Mahanadi Quality control,
2 51 10 41 80
Godawari Raipur
Basin, Raipur
5 CE, Hasdeo Research &
Ganga Basin, Quality Control 3 3 1 2 67
Ambikapur Unit, Ambikapur
Grand Total Central lab-5
11 81 35 46 57
Sub-lab-11
(Source: Information provided by E-in-C, WRD)
It is evident from the above table that there was shortage of manpower up to
80 per cent in four quality control units.
On being pointed out, E-in-C accepted (December 2021) the shortage of staff
in the quality control units. It further stated that efforts were being made for
provisioning necessary budget to fill up the existing vacancies of quality
control officers/officials.
2.4.8.1 (ii) Availability of testing machinery/apparatus in quality
control labs
As per Paragraph 6.016 of WD manual, quality testing of all irrigation projects
was to be conducted by department’s main lab under Research
Officer/Assistant Research Officer. In addition to this, field labs were to be
established at work sites which would be part of the main lab to conduct daily
routine tests. Further, as per Appendix 6.02 of WD Manual, 1731 different
standard tests are prescribed for ensuring quality of concrete work.
Audit observed that out of 17 standard tests, machinery/apparatus for
conducting only three to seven tests were available with the labs/sub-labs.
During scrutiny of information provided by all five CEs, it was observed that
31
List of tests for which machinery/apparatus were not available in labs/sub-labs: (1) Silt on
fine aggregates, (2) Clay, fine silt and fine dust in aggregate (Sedimentation method), (3)
Surface moisture content in fine aggregate (Hot plate method), (4) Surface moisture
content in fine aggregate, (5) Bulking of fine aggregates, (6)Specific gravity and air
contents of fresh concrete, (7) Compressive strength of stone, (8) Dry and air contents of
fresh concrete (9) Laboratory Permeability, (10) In-situ permeability.
51
Compliance Audit Report for the year ended 31 March 2021
only 492 machinery/apparatus were available against the requirement of
662 number of machinery/apparatus for conducting various tests in the quality
control labs. Further, 81 (16 per cent) out of available 492
machinery/apparatus were unserviceable, as per the information provided by
the Department.
The quality control test of concrete as per IS-456 Code requires two types of
apparatus i.e. (i) Compressive strength testing machine and (ii) Cube mould. It
was observed that against the requirement of 454 number of above two
machinery/ apparatus only 411 machinery/ apparatus were available, out of
which 362 were serviceable and the remaining 49 were unserviceable. There
was shortage of 43 machinery/ apparatus which is nine per cent of total
requirement.
During joint physical verification of two labs, it was observed that against the
155 required number of machinery/apparatus for conducting standard 17 test,
34 machines/appartus were not operational and there was shortage of quality
control staff.
Photos shown below depict the condition of testing machines during joint
physical verification.
Photographs of Quality Control Unit at Janjgir and Sakri
1. Cube moulds 2. Compressive strength Testing
Dated: 04.10.2021(Janjgir lab) machine Dated: 04.10.2021(Janjgir lab)
3. Electric Mild steel motor cube vibrating machine Dated: 06.10.2021 (Sakri lab)
On this being pointed out, E-in-C (December 2021) stated that necessary
action would be taken for making provisions in the upcoming budget for
procurement of new machinery/apparatus and replacement of old
unserviceable machinery/apparatus.
52
Chapter II: Compliance Audit of General, Social and Economic Sectors
2.4.8.2 SoR not in consonance with IS Code 456:2000 resulted
in irregular execution of work
The schedule of rates (SoR) for Water Resources Department in Chhattisgarh
was in force from 1 August 2010 and the rates provided therein were
applicable on various irrigation works done by Department. The SoR provides
that “IS 456:2000 code of practice for plain and reinforced concrete”, (Third
revision with amendment No.1 and 2 reaffirmed 2005) may be referred to for
Plain Cement Concrete (PCC) & Reinforced Cement Concrete (RCC) items in
execution of concrete work.
Audit observed that the structures of irrigation related works (like anicuts,
canal lining, barrage, tanks, diversion scheme) are exposed to moderate
environment. IS 456:2000 code read with Table-3 explains the moderate
environment as an environment, where concrete surfaces sheltered from severe
rain or concrete, is continuously under water or concrete is in contact or buried
under non-aggressive soil/ground water. In such environmental condition, the
minimum grade for PCC & RCC would be M-15 & M-25 respectively, as
prescribed in IS code under clause 6.1.2 read with Table 5. However, in the
prevailing SoR minimum grade of concrete for PCC and RCC was provided as
M-10 and M-15 respectively. Further, only characteristic strength of grade of
concrete and its corresponding mix was mentioned in SoR 2010. The target
mean strength and acceptable criteria of concrete as given in IS code was not
mentioned anywhere in the SoR.
The E-in-C also issued an amendment/circular (May 2019) and directed all the
subordinate offices to execute the work as per IS Code 456:2000.
On being pointed out, E-in-C stated (March 2022) that the Department had
decided to revise the prevailing SoR-2010 and order has been issued to the
concerned section to prepare new SoR in consonance with the IS code.
Although the Department has issued circular for minimum grade of concrete
to be used, the respective items of SoR are yet to be amended. The audit
findings relating to the irregular execution of works due to non-adherence of
IS code 456:2000 are discussed in the succeeding paragraphs.
2.4.8.2 (i) Execution of PCC and RCC item of work with lower
grade of concrete
Clause 6.1.2 of IS Code 456:2000 read with Table-5 stipulates that minimum
grade of cement concrete to be executed should not be less than M-1532 for
PCC and M-25 for RCC under moderate environment. E-in-C of the WRD had
also issued a circular (May 2019) regarding adoption of minimum grade of
concrete as M-15 and above for PCC and M-20 and above for RCC in mild
exposure, as mentioned in the IS code 456:2000.
During scrutiny of 152 agreements executed by 48 divisions (in two divisions
no concrete work was executed), it was observed that in 150 agreements, the
estimates for PCC and RCC items were provided and executed below the
prescribed grade, in non-compliance to the IS code. The strengths of these
32
Letter M refers to the mix and number to the specified characteristic compressive strength
of 15-cm cube at 28 days, expressed in N/mm2.
53
Compliance Audit Report for the year ended 31 March 2021
below grade concretes were lower by around 33 to 40 per cent from the
required strength of M-15 for PCC and M-25 for RCC. This resulted in
execution of 8,51,539.82 cum & 1,48,985.71 cum of PCC & RCC work with
lower grade of concretes respectively involving expenditure of ` 312.54 crore
without adhering to the IS Code (as detailed in Appendix 2.4.1) as shown in
Table 2.4.3:
Table 2.4.3: Execution of various grades of PCC below M-15 and RCC below
M-25
Types of concrete PCC RCC
Grades of concrete 1:4:8 (M-7.5) 1:3:6 (M-10) 1:2:4(M-15) 1:1.5:3(M-20)
Quantity executed 2852.7 848687.11 66579.01 82406.69
(in cum)
Total Qty. (in cum) 851539.82 148985.71
Cost of concrete work 234.40 78.14
as per the running bill
(in ` crore)
(Source: Information provided by audited divisions of WRD)
Further, 19 Notice Inviting Tenders (NITs) were floated, and agreements were
executed after issue of the circular (May 2019) regarding adoption of
minimum grade of concrete as M-15 and above for PCC and M-20 and above
for RCC in mild exposure, as mentioned in the IS code 456:2000. Out of
19 agreements, the revisions were fully implemented in only one agreement
whereas in the remaining 18 agreements revisions were partially implemented
The quantity of PCC and RCC items executed after issue of circular is shown
in Table 2.4.4.
Table 2.4.4: Execution of various grades of PCC below M-15 & RCC below
M-25 after issue of the circular
Types of concrete PCC RCC
Grades of concrete 1:4:8 (M-7.5) 1:3:6 (M-10) 1:2:4(M-15) 1:1.5:3(M-20)
Quantity executed 0 13101.56 6357.02 2605.75
(in cum)
Total Qty. (in cum) 13101.56 8962.77
(Source: Information provided by audited divisions of WRD)
Thus, the Department continued to execute lower specification work contrary
to IS Code 456:2000 even after the issue of the circular.
E-in-C stated (March 2022) that the respective Divisions had executed the
PCC/RCC work as these items are provided in SoR 2010. It further stated that
the grade of concrete for PCC and RCC items have been revised at the
instance of audit and all the subordinate offices have been instructed to follow
the above instructions. After issue of circular substantial improvement
regarding preparation of SoR and execution of concrete works according to IS
code has been noticed.
The reply is not acceptable as even after the issue of circular instances of use
of lower grade of concrete had been noticed by Audit. Though the Department
54
Chapter II: Compliance Audit of General, Social and Economic Sectors
had issued the circular revising the minimum grade of concrete in mild
conditions for PCC and RCC work, the entries for respective items of works in
the SoR were not amended.
2.4.8.2 (ii) Conducting of lesser number of cube tests than
prescribed in IS 456:2000
As per clause 15 of IS Code 456:2000, for first 50 cum of concrete, test of four
samples, each consisting of average of three specimens of size 15cm x 15cm x
15cm should be conducted and thereafter, for every additional 50 cum or part
thereof, test of four plus one additional sample was to be conducted. Further,
as per clause 15.4 of IS code, the test results of sample should be the average
of the strength of three specimens. Variation of more than + 15 per cent of the
average in the test results was to be treated as invalid.
The Sub Divisional Officer of the respective project was required to send the
list of casted concrete cubes along with details of work, nature of work and
date of casting to Research Officer/ Assistant Research Officer of respective
labs. After 28 days, Research Officer/Assistant Research Officer was required
to send the test results to the Executive Engineer of respective divisions.
Audit scrutiny of 152 works which included 43 anicuts/stop dam, 71 Cement
concrete canal lining and structures, 24 barrage/diversion/tanks, nine
protection works and five bridge works executed by 48 divisions revealed that
the Department had executed and accepted 16.33 lakh cum PCC and RCC
items without carrying out the prescribed number of cube tests (as detailed in
Appendix 2.4.2). Against the required 53,119 number of concrete cube
sample tests, not a single sample test by taking average of three specimen was
conducted. For 53,119 sample tests, 1,59,357 number of specimens of
concrete cubes were to be tested whereas only 7,401 (4.6 per cent) number of
specimens were tested. Further, in EE, WR Division, Bijapur33, not a single
specimen test was conducted against required 219 number of tests. Thus, the
concrete cube testing was not done as per the prescribed frequency to ensure
the quality of concrete work.
E-in-C (March 2022) in its reply stated that the frequency was clearly
mentioned in the IS Code-456 (2000). However, the quality control units are
presently functioning with shortage of officers/officials and there was also
shortage of testing machinery/apparatus. Efforts are being made to fill the
vacancies and replace/procure the machinery/apparatus. After revamp of
quality control units frequency of sample test of compressive test of concrete
cube will definitely improve.
2.4.8.2 (iii) Non-compliance to the standard compressive strength
requirement in execution of concrete work
Clause 9 read with Table-8 and clause 16 of IS code 456 specifies the target
mean strength and acceptable criteria for various grades of concrete in terms
of assumed standard deviation. Further, as per amendment 4 of
IS Code 456:2000, the acceptable criteria of grade of concrete should not be
33
EE, WR Dn, Bijapur, CG
Nature of work: two anicut and one stop dam.
55
Compliance Audit Report for the year ended 31 March 2021
less than the greater of value “fck34+3 or fck+0.825*sd” for mean of the group
of four non-overlapping consecutive test results, as shown in the Table 11 of
IS Code 456:2000. Further, for individual test result it should not be less than
fck-3 N/Sqmm. The value of acceptance criteria and target mean strength is
derived using the formula prescribed in IS code by Audit for different grades
of concrete as shown in Table 2.4.5.
Table 2.4.5: Assumed standard deviation and formulae to derive targeted mean
strength and acceptable criteria of compressive strength of concrete cube at
28 days as per IS Code 456:2000
Grade of Characteristic Assumed Target Mean Acceptance criteria
concrete compressive standard strength (greater of (fck+3 or
(M strength (fck) of deviation (fck+(1.65*sd)) fck+0.825*sd))
represent 28 days (sd) Rounded up to nearest
mix of 0.5 N/sqmm
concrete)
M-10 10 N/sqmm 3.5 15.8 13
M-15 15 N/sqmm 3.5 20.8 18
M-20 20 N/sqmm 4 26.6 23.5
M-25 25 N/sqmm 4 31.6 28.5
M-30 30 N/sqmm 5 38.3 34
M-35 35 N/sqmm 5 43.3 39.1
In SoR, only characteristic strength of grade of concrete and its corresponding
mix was mentioned. The target mean strength and acceptance criteria, as given
in the IS code was not mentioned anywhere in the SoR. The E-in-C however
issued an amendment circular (May 2019) in SoR showing acceptance criteria
and target mean strength in accordance with the IS Code 456:2000, as given in
Table 2.4.6.
Table 2.4.6: Targeted mean strength and acceptance criteria of strength of
concrete cube at 28 days as per the amendment
Concrete Mix Target Mean Strength of cube Acceptance Criteria for strength
of the Concrete at 28 days of cube of Concrete at 28 days
M-20 26.6 N/sqmm 24 N/sqmm
M-25 31.6 N/sqmm 29 N/sqmm
M-30 38.5 N/sqmm 34 N/sqmm
(Source: Information provided by E-in-C, WRD)
Audit noticed that in 152 numbers of agreements executed by 48 divisions,
concrete work of PCC item of 14.53 lakh cum and RCC item of 1.69 lakh cum
(as detailed in Appendix 2.4.3) was executed amounting to ` 527.57 crore.
Audit scrutiny of test report results in test checked agreement revealed that out
of 7,401 number of specimens tested, only nine specimens had achieved the
targeted mean strength and 540 specimens had achieved the acceptance
criteria whereas the remaining 6,852 specimens (93 per cent) failed to achieve
acceptance criteria, as derived in Table 2.4.5. Thus, due to non-achievement
34
fck denotes Characteristic Compressive strength, sd means Standard Deviation.
56
Chapter II: Compliance Audit of General, Social and Economic Sectors
of desired strength (Target strength) inferior quality of concrete work
amounting to ` 527.57 crore was executed and accepted by the Department.
Thus, execution of concrete works with lower grade of concrete without
adhering the testing norms as per the IS code and without ensuring standard
compressive strength entails the risk of damage to the concrete structures
before completion of their assumed life. Further, repair and maintenance of the
damaged structure due to inferior quality of concrete work would also increase
the cost of the project.
E-in-C (March 2022) stated that prior to amendment circular issued by the
E-in-C regarding desired strength and acceptable criteria, the respective
divisions have executed the PCC & RCC work as provided in the SoR 2010
considering characteristic strength as desired strength. It further stated that at
the instance of audit, the Department had defined the design strength and
acceptable criteria of concrete work separately by issuing amendment on
26.05.2019 and accordingly instructed all the subordinate offices to follow the
above amendments. After issue of the said instruction, substantial
improvement in test report has been noticed. Further, the Department has also
conducted training programmes in Raipur Training Center regarding quality
control of concrete works from the year 2021-22 for field engineers and
quality control officers.
Audit also examined PCC and RCC works executed after issue of the
amendment, and found that only 2,235 specimens of concrete cube tests were
conducted wherein not a single specimen achieved the desired target strength,
332 specimens achieved acceptance criteria while the remaining 1,903 number
of specimens failed to achieve even acceptance criteria.
2.4.8.2 (iv) Acceptance of lower specification work due to execution
of RCC and PCC work with nominal mix instead of
design mix
As per clause 9.1.1 of IS Code 456:2000, design mix concrete is preferred to
nominal mix. If design mix concrete could not be used for any reason on the
work for grade of M-20 or lower, nominal mix may be used with the
permission of Engineer in charge.
Contrary to the above provision, 2,948 cum of PCC M-25, 3,053.11 cum of
RCC M-25 and 250.52 cum of RCC M-30 was executed in five agreements (as
detailed in Appendix 2.4.4) without preparation of design mix and executed
through nominal mix35 which resulted in irregular execution of work.
E-in-C accepted (March 2022) the audit observation and stated that used
quantity of concrete in execution of RCC/PCC work with nominal mix instead
of design mix was very less. Although, a directive would be given to the
divisions concerned for not repeating the same mistake in future.
35
Nominal Mix: As per clause 9.1, Nominal Mix method was used with assurance to
achieve desired strength without varying the proportion of mix of component required of
concrete
57
Compliance Audit Report for the year ended 31 March 2021
2.4.8.2 (v) Damaged concrete Structures
During the Compliance Audit, records related to five36 damaged structures
were examined. Audit noticed from the inspection reports of the Department
that in one out of five cases, no official inspection after the damage/breach of
structure was conducted by the Department but tentative survey to assess the
cost of damage and preparation of estimates was conducted. In two cases, as
per the inspection report, the damage to the structure was attributed to heavy
rain. In one case (Chatapara II Anicut) reason for damage mentioned in the
inspection report was lack of planning and quality of work due to non-testing
of concrete as per the departmental standard. In another case the reason of the
damage was non-completion of work by the contractor within the timelines.
These cases were also examined to ensure the compliance to IS code in
execution of PCC and RCC work (as detailed in Appendix 2.4.5). Audit
noticed non-compliance to the IS standard relating to the use of minimum
grade of concrete, testing of concrete cube and compressive strength
requirement. Out of five cases, four cases have been physically verified while
the remaining one case was verified from the official records. Details of four
cases are mentioned below:
Complete damage of Chatapara Anicut
Date of Photograph: 28.07.2020
Agreement No. 03 DL/2009-10
Name of Division W R Division-Kota
Name of Work Chatapara II anicut scheme
Total actual cost of work ` 7.10 crore
Date of completion 25.03.2013
Date of Damage 25.05.2014
36
1. Chatapara II Anicut, 2. Const. of Flood protection work on river Arpa, 3. Hatkul
Diversion scheme,4. Turi Diversion scheme & 5. Taragaon Anicut
58
Chapter II: Compliance Audit of General, Social and Economic Sectors
Complete damage of Turi Diversion Scheme
Date of Photograph: 27.07.2021
Agreement No. 18 DL/2012-13
Name of Division WR Division-Kanker
Name of Work Construction of Turi Diversion Scheme (Head work)
Total actual cost of work ` 3.74 crore
Date of completion 23.05.2014
Date of Damage 13.08.2018
59
Compliance Audit Report for the year ended 31 March 2021
Complete damage of Hatkul Diversion scheme
`
Date of Photograph: 27.07.2021
Agreement No. 24 DL/2010-11
Name of Division WR Division-Kanker
Name of Work Construction of Hatkul Diversion scheme
Total actual cost of work ` 1.72 crore
Date of completion 11.09.2012
Date of Damage 12.08.2018
60
Chapter II: Compliance Audit of General, Social and Economic Sectors
Damaged portion of Taragaon Anicut
Date of Photograph: 05.08.2021
Agreement No. 07 DL/2013-14
Name of Division W R Division-Narayanpur
Name of Work Construction of Taragaon Anicut
Total actual cost of work ` 2.67 crore
Date of completion 17.06.2015
Date of Damage 24.07.2021
On being pointed out, regarding breached concrete structure due to
non-adherence of IS code 456:2000, E-in-C replied (March 2022) that due to
discrepancy in SoR, below graded items of PCC and RCC was provided as
these items are economical and also provided in the prevailing SoR prior to
2010. Further due to non-clarity in respect of targeted mean strength and
acceptable criteria in the SoR, the same was rectified by issuing amendment.
2.4.9 Conclusion
The Water Resources Department did not comply with the IS code of practice
456:2000 in execution of cement concrete work. There was shortage of
manpower and machines in the quality control units of the Department. Audit
noticed that the prescribed number of cube testing to ensure the quality of
cement concrete work were not being conducted and the average of three
specimens were not taken for each sample to be tested. Out of the
7,401 number of samples tested by the Department in test checked works,
6,852 (93 per cent) samples failed to meet the acceptance criteria indicating
that the target strength of work executed was not achieved. Department
provided and executed lower specification or grade of PCC work (lower than
M-15) and RCC work (lower than M-25) which are not in consonance with the
IS code. Design Mix for higher grade of concrete (M-25 and above) was not
adopted in five test checked works. Thus, due to non-adherence of IS code
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Compliance Audit Report for the year ended 31 March 2021
456:2000 the quality control units failed to assure the quality of cement
concrete works executed by the Department.
2.4.10 Recommendations
1. The SoR should be amended and updated periodically in consonance
with the relevant IS code.
2. The Quality Control units should be strengthened with adequate staff
and machinery/apparatus to maintain the required testing frequency
for effective functioning of the quality control units.
3. The Department should ensure proper testing of concrete cube as
specified in IS code to ensure required quality of concrete works in
irrigation projects.
4. The Department should ensure the compliance with the IS code
specifications in execution of cement concrete works under irrigation
projects.
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