NEW DELHI, April 22: The Comptroller and Auditor General (CAG) of India has recommended the closure of the Delhi government’s ambitious poultry project because of huge losses.
According to the CAG report, Satbari Poultry Farm’s losses in 1995-97 were Rs 76.97 lakh, whereas the total losses amounted to Rs 2.8 crore.
“The department should investigate the working of the farm and take suitable action to run it on `no profit, no loss’ basis. If that is not possible, as seen from the experience of earlier years, they may consider closing down the same.”
The CAG report says that as against an expenditure of Rs 44.43 lakh and Rs 46.46 lakh during 1995-96 and 1996-97, the receipts amounted to a paltry Rs 8.7 lakh and Rs 5.22 lakh respectively.
“The possibility of pilferage of feed and poultry products could not be ruled out which was evident from the excess feed consumption and drastic decline in production of chicks,” the CAG noted.
Pointing several lapses in the working of the farm, the CAG observed as against expected production of 69 chicks per parent per annum, the actual production during 1995-97 ranged between 15 and 32 chicks. There was a shortfall of 2.45 lakh chicks valued at Rs 15.7 lakh. The farm sold day-old chicks for Rs 6 each as against the higher market price of Rs 10. The quantity of feed issued during 1996-97 was almost double the quantity issued during 1993-94. As against the total earnings of Rs 5.22 lakh for 1996-97, the cost of feed alone was Rs 13.23 lakh.
As against the capacity of 10,000 parent stock to be handled by 60 personnel, the parent stock handled during 1995-97 ranged between 2,330 and 2,960, the CAG report observed.
Also, the farm was paying higher tariff for a sanctioned load of 250 KVA against the requirement of 95 KVA. As a result, it incurred an avoidable expenditure of Rs 6.69 lakh, the report said.
The CAG has revealed that another Delhi government scheme, which was meant to be self-sustaining, but had gone awry relates to community bio-gas plants.
Implemented by the Delhi Energy Development Agency (DEDA), the scheme was meant to provide fuel for cooking purposes and organic manure to rural household through bio-gas plants, which were to use fresh dung bought from the sale proceeds of bio-gas and manure.
As of October 1997, DEDA had three community bio-gas plants, of which the plant at Nangli Sakravati completed in October 1995 is yet to be commissioned.
The CAG observed that fresh dung was bought for Rs 10 lakh by diverting funds from other schemes, whereas accumulated bio-manure valued at Rs 7 lakh was lying unsold. Dumped in the open ground, the bio-manure stocks were washed out by the rains.
As for the Nangli Sakravati plant, its non-operational status had led to the blocking off of funds amounting to Rs 16.29 lakh. The agency was also suffering recurring potential loss of Rs 3 lakh per annum due to non-release of new connections and sale of bio-manure.“Community bio-gas, a well-conceived scheme which had the potential to be a self-sustaining one, turned out to be a liability due to poor management and ineffective implementation,” the CAG said.