HPSIDC CAG Audit Flags Rs 100+ Crore Irregularities, Delays in Himachal Pradesh
Shimla, March 23,
HPSIDC CAG audit report flags major irregularities in Himachal Pradesh, including Rs 44.96 crore works without approval, Rs 103.40 crore project delays, excess spending and tendering lapses.
The Public Undertakings Committee of the Himachal Pradesh Assembly has flagged multiple financial and procedural irregularities in the functioning of the Himachal Pradesh State Industrial Development Corporation (HPSIDC), citing audit findings of the Comptroller and Auditor General (CAG).
In its 29th report for 2025–26, tabled in the House on March 23, the committee reviewed CAG Audit Para 5.5 (2017–18) and pointed to lapses in project execution, financial management and tendering practices.
The report noted that 10 works worth Rs 44.96 crore were executed without technical approval, with expenditure of Rs 27.64 crore incurred between June 2013 and November 2017.
On financial management, the committee observed that in 448 works, excess expenditure of Rs 21.29 crore was incurred beyond available deposits, while Rs 12.43 crore of savings was not returned to client departments in time.
The audit also flagged that earnest money deposits (EMD) were under-collected by Rs 1.42 crore due to deviation from prescribed norms.
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Serious concerns were raised over project delays. Out of 92 test-checked works, 33 were not completed on time, leading to loss of potential revenue. In one case related to temple infrastructure works, delays resulted in a loss of Rs 4.82 lakh in agency charges and a missed opportunity of additional works worth Rs 6.45 crore.
The report further highlighted delays in two major infrastructure projects, where Rs 103.40 crore had been spent but works remained incomplete beyond deadlines.
Irregularities in consultancy payments were also flagged, with excess payment of Rs 1.04 crore plus Rs 15.12 lakh as service tax, along with inconsistent calculation methods. Additionally, Rs 5.74 lakh was paid in excess to a contractor in violation of contract provisions.
The committee has sought detailed explanations from the department and recommended corrective measures to prevent recurrence of such lapses.
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