For 6 years, Rs 169 crore forest conservation funds lay unused in Himachal: CAG

Chief Minister Sukhvinder Singh Sukhu tabled the ‘Performance Audit Report of the Comptroller and Auditor General of India on Compensatory Afforestation in Himachal Pradesh’ under Article 151(2) of the Constitution of India, Government of Himachal Pradesh.

The audit covered 15 years from April 2006 to March 2021 for CA cases and CAT plans, and April 2016 to March 2021 for the effective implementation of the Forest Conservation Act (FCA), 1980. It scrutinised records from the principal chief conservator of forests (PCCF), Himachal Pradesh Compensatory Afforestation Fund Management and Planning Authority, and other related offices. Nine forest divisions, selected through stratified random sampling, were examined in detail.

The report highlighted that meetings of the State Authority were not held at prescribed intervals, and there was a significant shortfall in the utilisation of funds. Between 2016-17 and 2021-22, Rs 169.73 crore—around 20 per cent of the funds approved by the National Authority—remained unutilised.

Despite the creation of a state fund in 2019, user agencies (UAs) continued to deposit funds with the National Authority till March 2022, violating provisions of the Compensatory Afforestation Fund Rules, 2018, the CAG found.

Moreover, an ineligible expenditure of Rs 6.51 crore was incurred on the development of nature or eco parks during 2019-21 under components meant for degraded forest land, contrary to guidelines issued by the Union Ministry of Environment, Forest and Climate Change (MoEF&CC). The user agencies include hydroelectric projects, roads, educational institutes, hospitals, transmission lines, etc.

The CAG also highlighted that the annual financial statements of the State Authority for 2019-20 and 2020-21 were also pending finalisation, indicating weak financial oversight.

Delays, data errors, and site encroachments

The audit revealed that 1,018 proposals were submitted by user agencies to MoEF&CC for FCA clearance during the audit period, but 766 cases remained pending—17 per cent at different levels within the state Forest Department and the rest with user agencies. In approved cases, processing delays were rampant, ranging from 8 per cent (state government to regional office) to a staggering 93 per cent (nodal officer to state government).

CAG

A 360-degree analysis of CA cases in the selected divisions exposed incomplete application submissions and inordinate delays in approvals. Further, incorrect geospatial data of CA sites was uploaded on the E-Green Watch portal, potentially skewing decision-making at both state and central levels.

Alarmingly, CA activities were carried out outside designated open degraded forest areas, with 83 per cent of CA sites found in non-designated zones. Some sites were even in very dense forest (VDF) and moderate dense forest (MDF) areas, raising doubts about the legitimacy of these plantations. Geospatial studies also indicated encroachments—structures were detected on six CA sites, and agriculture was being practised on 11 sites.

Shortfalls in afforestation and escalating costs

The audit noted that against the mandated 5,213 hectares of CA, only 4,284 hectares were covered in the sampled divisions. Delays in plantation resulted in additional liabilities of Rs 8.72 crore in 69 cases due to cost escalation, besides excess expenditure of Rs 2.03 crore and future maintenance liabilities worth Rs 12.87 crore in 194 cases.

In 71 per cent of the test-checked cases, the CA site location was changed without documented approval from MoEF&CC. Additionally, short realisation of CA costs worth Rs 3.29 crore was recorded as the department failed to account for anticipated price escalations, the CAG found.

The department also failed to recover Rs 5.53 crore towards regeneration costs from two project proponents and Rs 1.86 crore for plantations under the Taxus Baccata scheme. In another glaring instance, a muck rehabilitation plan related to the Atal Tunnel project, costing Rs 12.09 crore, remained unimplemented even after 13 years, as per the audit.

Catchment area treatment plans poorly monitored

The CAG flagged serious gaps in the CAT plan implementation for hydroelectric projects above 10 MW. The department neither maintained data on funds due and received from user agencies nor monitored project cost escalations. Consequently, it failed to demand additional funds of Rs 198.73 crore after revisions in techno-economic clearances and Rs 8.48 crore for three projects where capacity was enhanced, the audit revealed. Field checks in Bajoli Holi HEP revealed failure to meet afforestation targets, site changes without inspection, and non-execution of critical works such as fire lines, boundary repairs, and silt observation posts, as per the CAG.

Recommendations for systemic overhaul

Calling the lapses symptomatic of weak internal controls and absence of coordination among agencies, the CAG recommended timely State Authority meetings, prompt finalisation of annual accounts, and removal of pendency in FCA approvals. It also stressed the need for accurate data on the E-Green Watch portal, identification of land banks for CA, and a centralised database for FCA cases and CAT plans.

The report urged strict compliance with MoEF&CC conditions, accountability for deviations, and investigations into possible fund misappropriation. It also advised scientific site selection for CA using GIS data, regular patrolling to prevent encroachments, and prosecution of offenders under the Indian Forest Act, 1927.