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Forest land diverted but cost not recovered from companies: CAG

As per the audit report over Rs 42 crore remained unrecovered

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The Comptroller and Auditor General (CAG) of India in its report tabled in the Assembly on Wednesday criticised the forest department's inability to recover the Net Present Value (NPV) and 5% project cost from companies.

As per the audit report over Rs 42 crore remained unrecovered.

It should be noted that as per the rules, the department has to recover the NPV and 5% project cost from user agencies when it diverts land that come under Wildlife Sanctuaries and Nature Parks in the state.

This amount can be recovered from the user agency only in the event of the land being diverted for non forest purpose. The funds so collected is to be put in the Compensatory Afforestation Fund Management and Plan Authority (CAMPA).

The report stated that the department approved 44 proposals for diversion of 1,134 ha of land from sanctuaries and national park. Of this, the CAG audited 10 such sanctions and found that only in two cases did the department recover the NPV.

It thus failed to recover Rs38.98 crore in the other eight cases.

As far as 5% project cost recovery from user agencies was concerned, the audit found that the department recovered the project cost in just three of the cases.

It found that in instances where the department could not recover the 5% project cost, three were such cases where the entire project had been completed yet no recovery notice was sent.

In the rest of the four cases, the recovery could not happen because the project cost was not mentioned in the original proposal made to the forest department.

Thus it could not be calculated. It also found that in cases where the NPV and project cost was recovered, there were instances of under recovery after the department demanded a rate that was less than what was approved for the land.

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