Panel flays fertiliser dept for not using funds

The committee has reiterated the need for synchronising the project planning and implementation so that plan fund was spent uniformly over the plan period. Only this could ensure a planned growth of the fertiliser industry, it remarked.

Significantly, the expenditure shortfall was mainly on account of the fact that a number of projects got delayed and did not materialise. Among projects which did not materialise include Oman India fertilizer project (Rs 100 crore earmarked), Nellorefertilizer project (Rs 68 crore), acquisition of Mangalore Chemicals and Fertilisers (Rs 50 crore), joint venture fertilizer project with Iran (Rs 30 crore) and Jhunjhunu power project of Kribhco (Rs 50 crore).

The Department of Fertiliser deposed before the committee that Kribhco dropped the projects of acquisition of Mangalore Chemicals and the Jhunjhunu power project. Although the government had granted investment clearance of the Oman India fertilizer project, negotiations with financing agencies could not be completed and, therefore, the project could not take off.According to the committee, the government had yet to take a decision on the Nellore fertiliser project. The funds have, however, not lapsed as all the projects would be funded by the respective PSUs out of their own internal accruals, it was noted.

The parliamentary committee observed that as against the Department of Fertiliser’s projections of Rs 14,779 crore for the ninth plan, the Planning commission approved an outlay of Rs 11,477crore. Since the PSUs would be in a position to raise resources for the proposed projects, the department expressed optimism in securing the Planning commission’s approval for suitable enhancement of the ninth plan outlay, the committee noted, adding that it had desired that the ministry should take up the issue of more funds with the planning commission urgently. Significantly, the committee expressed its displeasure over the manner in which the administrative ministry monitored the progress of various projects under its control. "The ministry should take timely steps to monitor the progress and coordinate with the concerned authorities to get these projects cleared expeditiously," it noted.

Panel against ITI, HTL sell-off

NEW DELHI: The Parliamentary Standing Committee on Communications has struck down Disinvestment Commission’s proposal to sell 50 per cent equity of the government-owned Indian Telephone Industries and Hindustan Teleprinters Limited (HTL) to strategic partners. Expressing itsstrong disapproval on the proposals, the committee headed by CPM leader Somnath Chatterjee said in its report that since the strategic partner required to be a foreign company, such a sale would make ITI an arm of a foreign firm. It would turn the country to a permanent importer of foreign technology instead of having its own stamp in telecom sector since the foreign company would absorb the indigenous C-DOT technology. On the 100% equity sale in HTL, the committee said since the Telecom Commission was confident of a good future for the company and was in favour of government retaining majority equity.