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2023 CAG report tabled in HP Assembly, flags fund misutilisation, delays in relief, policy gaps

In 56 instances, roads were built by the Himachal Pradesh Public Works Department (HPPWD) without prior approval, violating statutory provisions. While penalties amounting to Rs 5.01 crore were recovered in 53 cases after post-facto approvals, three cases saw no penalties imposed, contrary to prescribed guidelines.

Himachal Pradesh Chief Minister Sukhvinder Singh SukhuHimachal Pradesh Chief Minister Sukhvinder Singh Sukhu

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu tabled the Comptroller and Auditor General of India (CAG) report for the Period Ended for March 2023, flagging concerns over fund management, delays in disaster relief and regulatory lapses across key departments, in the Assembly on Monday. The report is signed by Principal Accountant General (PAG, Audit) Purushottam Tiwary.

The report scrutinises multiple sectors, including the forest department, industries and institutions such as the Himachal Pradesh University, and calls for systemic reforms to ensure transparency and accountability.

The CAG has issued a series of stringent recommendations to the Himachal Pradesh government.

Among its key recommendations, the CAG stressed the need for efficient utilisation of available funds and directed the government to issue standing instructions to banks for timely investment of surplus balances. It also called for mechanisms to prevent misuse of funds on inadmissible works, suggesting that every bill submitted to the Treasury be accompanied by a signed undertaking, verifying compliance with the SDRF/NDRF norms.

Highlighting delays in disaster relief, the audit recommended that assistance be provided within 30 days of a disaster report. It suggested strengthening monitoring systems, such as the State Management Information System (SMIS), to automatically flag delays and fix accountability.

In the forest sector, the CAG report flagged under-assessment of Net Present Value (NPV), leading to short realisation of CAMPA funds under the Forest (Conservation) Act, 1980. It noted that out of 314 examined cases of forest land diversion, 158 involved road construction.

In 56 instances, roads were built by the Himachal Pradesh Public Works Department (HPPWD) without prior approval, violating statutory provisions. While penalties amounting to Rs 5.01 crore were recovered in 53 cases after post-facto approvals, three cases saw no penalties imposed, contrary to prescribed guidelines.

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The mining sector audit revealed that while it contributed Rs 1,236.66 crore to state non-tax revenue between 2018-19 and 2022-23, critical planning gaps persisted. The department failed to prepare mandatory Annual Action Plans (AAP) during the period, hampering systematic monitoring of inspections, royalty assessments and projects under Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY).

Additionally, no scientific inventory of mineral reserves was compiled in sampled districts, undermining policy planning and environmental safeguards. The audit also found delays in processing mining lease applications, with 14 out of 73 cases decided between 71 and 1,184 days beyond the stipulated timeframe.

The CAG has urged the state government to adopt corrective measures to strengthen financial discipline, improve governance and prevent future irregularities.

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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