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    Adani Silos CAG report

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    25K Ansichten14 Seiten

    Adani Silos CAG Report

    Hochgeladen von

    The Wire
    Adani Silos CAG report

    Copyright:

    © All Rights Reserved
    Als PDF herunterladen oder online auf Scribd lesen
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    “@ fr ene Foop aes Ghums: KHADYANIGAM 5 ase for orem CORPORATION = so Fas No.:01°2-2866196 (61-2) ean OF INDIA ‘eareata Acct: Para/Adan| Silos/20i7:-—: sevice’ “or Please refer your: office ‘letter No, & ~--y6/07:07:2017 on the Subject cited above: : In this regard the fepiy oF Factual Statement “avoidable"sxpendi ‘on cany vet Ghaiges ‘tue to ror-utitzaton of vacint tapecty of Adani Silo ootinlly =: Re, 5.46 Crs forwatded to you for further necessary actiof at your end Aa Z 2(1)/2014)V01.V/869- dated Yours faithfully. | "Copy ta oT A Additional Director; Department of TA & P Bhawan, Sectar-{7, Chandigarh.” 2.°AGM (IABPV), FCI, HRO local, Annexure-A Reply of factual statement (Avoidable expenditure on Carry over Charges due to non-utilisation of vacant capacity of Adani Silo optimally .... Rs. 5.46 crores, Failure of FCI to utilise vacant capacity of Adani Silo resulted in avoidable payment on account of Carry over Charges amounting to Rs. 5.46 crores. DESCRIPTION OF PARA REPLY OF PARA FCI along with State Govt. Agencies (SGA3) procure wheat for Central Pool. The wheat procured by SGAs is delivered to FC! after procurement in a phase manner based on available vacant space with FCI. As per the instruction of. the Govt. of India (GO!), FCI has to pay carry over charges (COC) In the shape of storage and interest to SGAs on the quantity of wheat taken over after June 30 each year. The interest portion included in the COC keeps on escalating at compounding rate every month. The above carry over charges paid to SGAs can be minimized by optimal utilization of existing vacant storage space. ‘Apart from owned and hired storage from CWC and SGAs, FCI had acquired storage capacity of 2LMT at kaithal under Haryana Region from M/s All on Built, Own and Operate (B00) basis from April 2007 on actual utilization basis at Storage Cum Handling Charges (SCHC of Rs. 2000/-per annum per fonne due to delay in implementation of the project. ‘The SCHC of Rs. 2000/- PA per tonne on guaranteed capacity of 2 LMT were made effective on completion (September 2013) of the project. Consequent upon payment of guaranteed hiring charges to M/s All for Silo at Kaithal, the optimum utilization of storage capacity was of peramount importance so as to ensure that extent of idle capacity and payment of SCHC for such capacity are minimized. During the course of audit, it was observed that extent of vacant capacity ranged upto 133802.547 MT during 2013-14 to 2015-16, which resulted in payment of Rs. 24.28 crores for the storage capacity which ‘was not put to use by FCI. The HRO further stated that to avotd expenditure on account of COC being paid to SGAs, the idle capacity at ‘Adani silo may be utilized optimally upto the guaranteed tonnage (2 LMT} by transporting the stock stored with SGAs to ‘Adani silo so as to avoid payment of idle rentals and concluded that the excess expenditure over rentals would offset the excess expenditure over a period of two to eight months, Though the above economics was concluded to be cost effective by the management, Audit observed that the above economics was not based on facts, as the payment of rent to Adani was guaranteed and thus, the excess with regard ‘to observations of CAG, kindly refer to the GO! letter no. 192(24}/2007 — FC A/cs dated: 26.03.2014 (copy enclosed) vide which they have forwarded minutes of the meeting held on 07.03.2014 (copy enclosed). inthis connection, the instruction given at point strictly is reproduced as under: “The direct delivery to FCI should mean lifting of Wheat procured by the State Agencies from the mandi_yard concerned & Gy ‘expenditure of COC over the cost (Transportation and de-bagging) should not have been included in the total ‘expenditure for delivery of stock to Adani ilo (Column 5 of the above table). Therefore, the fact that no rental was to be paid as the FCI was already paying SCHC upto the guaranteed tonnage of 2 LMT was ignored in the above comparisons of Intended expenditure vis-2-vis COC. Taking thls fact into account alongwith actual transportation and de-bagging costs, the audit worked-out the benefit to FCI as details below :- Name of the | COC payable perqtl. | Total expenditure per gt! for delivery of stock to | Excess expenditure on center Adani silo coc/ati. 1 2 3 4 5 “Transportation cost | Debagging charges Rs./Qtl. | (Rs.) {Rs.f Pundri Rs 20.91 to Rs. 23.29 2iito285 7 271090 Pehowa (Covered) Pai it was observed in audit that the base depot at Kaithal is optimally utilized during April to June every y procurement season and after June, the food grains are regularly transported to field depots leading to de stock position, thereby capacity remaining idle Silo was lying unutilized, whereas substantial quantity of wheat stocks was stored in SGAs at Pai, (HRO) management considering the fall in the stock position at the Base depot, Kaithal every year emphasized that the COC payable to SGAs would be much higher than the SCHC paid to DCO on guaranteed basis. ‘Thus, the HRO instructed (July 2013) the District office, Kurushetra (DO KKR) to make Centralwise analysis of costs {Transportation and de-bagging at silo) that would be incurred for taking delivery of wheat from SGAs in the adjoining areas to Base depot Kaithal vis-2-vis COC payable to the SGAs for the aforesaid stock, Based on the analysis done (August 2013) by the DO KKR, the HRO appraised (January 2014) the FCI Hars. that the excess expenditure on account of COC paid to SGAs vis-d-vis the total expenditure involved on transportation and de-bagging was found to be cheaper as detail below: and not from the Godowns of the State Agencies", Therefore, in view of above statement, should be noted that any handling/movement of food grains from state warehouse to Adani Silo was prohibited vide above mentioned GO! letter, Regarding the cost economics of the COC being more expensive than total cost of rentals ralevant as FCI was not allowed to take delivery of wheat after 30th of June and no secondary movements as mentioned in the minutes of meeting held on 07.03.2014 stated above, was allowed. Hence the cast economics based on a policy was Ke} Name of [COC Total expenditure per qtl for delivery of stock to Adani Silo Excess never allowed, is not the Centre | payable Expendi- relevant. per qtl ture over In view of posit ._| cocatl. explained as above, para 1 2 5 6 may please be dropped. ‘Adani rent | Total (Rs. Per q (Rs. per qtl ‘per month) Pai is. 15.35, 37.56 16.65 Kaul 20.91 15.35 25.00 4.09 Pundit (Covered) 15.35 29.78 8.87 Pehowa 15.35 31.86 10.95, Geom Sottore — PMRATIFRRS poop yeaa Sorieeemed en RTE CORPORATION 2 Set seman fefaTST OF INDIA New Beth connate Fexno.chrct no SRE ae, er to et eon connsazemos Ll actummanuoet ty siahemersamnectsantase No. B.1(23)/15/ Stg.1/s&C/P/03 Shri Ram Chandra, Under Secretary, Ministry of Consumer Affairs, Food and Public Distribution, Department of Food & Public Distribution, Krishi Bhawan, New Delhi, Dated 13.12.2017 Sub: Reply of factual statement "Avoidable expenditure of Carry over Charges due to ‘non-optimal utilization of vacant capacity at Kaithal silo Rs.5.46 cr*sreg. Sir, Kindly refer to your office lettor No. 9-02/2017-Stgill dated 071.2017 on the subject cited above. In this regard, reply of factual statement is enclosed herewith as Annexure-A. ‘This is for your information & necessary action. ie Your faithf. My, f= owe For Executive Director (S&C) Copy to: 1. Giv (1A), FCI Har. copy reply of Factual Statement “Avoidable expenditure on carry ver charges due to non-utiization of vacant capacity of Adan! Silo optimally--Rs, 5.46 Cr-here with enclosed for information pl. 2. GM {Silo}, FCI Hars. for information pl. Ge For Executive Director (S&C) Reply of factual stat. Sito optimally .... .46 crores, (ee Annexure-A 2 Avoidable expanditure on Carry over Charges due to non-utilisation of vacant capacity of Adant Sad rarest (7 ulllse vacant capacity of Adan Silo resulted in avoidable payment on account of Carry over Charges amounting to Rs. 5.46 crores. [ DESCRIPTION OF PARA T REPLY OF PARA FCI along with State Govt, Agencies procured by SGAs is andes ac fired storage from CWC and SGAs, FCI had acquired storage capacity of 2iMT at kaithal under Haryana Region from M/s All on Built, Own anc Operate (B00) basis from April 2007 on actual utilization basis at a Storage Gurm Hor Charges (SCHC of Rs, 2000/-per tonne oh guaranteed ts ce.ay 8 implementation of the project. The SCH of Re 2000/— my per project” Suaranteed capacity of 2 LMT were made effective on completion (Septeuber 2013) of the project. Apart from timum utilization of storage capacity was of paramot ‘on account of COC being paid to SGAs, the upto the guaranteed tonnage (2 LMT) by 0 a5 to avoid payment of idle rentals and \d offset the excess expenditure over a period The HRO further stated that to avoid expen idle capacity at Adani silo may be utilized opti stored with SGAs to Adani ed mah fe above economics was concluded to be cost effective by the management, Audit observed that the above economics was not based on facts, as the Payment of rent to Adani was | aeenid nec rand thus, the excess expenditure of COC aver the cost (Transportanon vg de-bagging) { should not have been included in the tetal expenditure for delivery of stock sy Adani silo {Column 5 of | t The observations of CAG about the capacity in silos fal vacant after the month of June nd the same not being filled up by movement of foodgrains from State Govt. godowns, to save payment of coc. While forwarding the ‘observation, CAG has not adduced the key documents that reflect. the analogy on the basis of which the COC and other costs suchas. transportation, debagging etc. have been derived, for which, CAG has been separately requested to provide the same, However, in this regard, it is ‘mentioned that ail efforts are ‘made to fill the godowns of FCI during the Procurement season by moving the ir wheat directly and FCI procures same in silo premises. This not facilitates farmers but also saves. -£0_various costs, such as, Bagging | a @ the above tabi SCHC upto the expenditure vis-a Therefore, the fact that no rental was to be paid as the FCI was already paying fanteed tonnage of 2 LMT was ignored in the above comparisons of intended COC. Taking this fact into account alongwith actual transportation and de- bagging costs, the audit worked-out the benefit to FCI as details below :- Name of | COC payable per | Total expenditure per gti for delivery of | Excess expenditure on the center | atl. stock to Adani Silo COC/Qt. 1 2 3 a 3 ‘Transportation Debagging charges | (Rs.) cost (Rs./QU.) | Rs./Qti. Pundri Rs 20.91 to Rs. | 11.04 to 16.54 2.11 to 2.85 2.7t09.0 Pahows | 23.29 (Covered) Pai Tt was observed in audit that the base depot at Kaithal Is optimally year, being procurement season and after June, depots leading to decline in the stock position, thereby capacity remaining idle Silo was lying unutilized, whereas substantial quantity of wheat stocks was stored in SGAs at Pal, (| Il In the stock position at the Base depot, Kalthal le to SGAs would be much higher than the SCHC paid to DCO on management considering the emphasized that the COC lized during April to June every the food grains are regularly transported to field 10) ry year guaranteed basis. Thus, the HRO instructed (July 2013) the District office, Kurushetra (DO KKR) to make Central-wise analy of costs (Transportation and de-bagging at silo) that woul incurred for taking delivery of wheat from SGAs in the adjoining areas to Base depot Kaithal vis-a-vis COC payable to the SGAs for the aforesaid stock. Based on the analysis done (August 2013) by the DO KKR, the HRO appraised (January 2014) | to SGAs vis-a-vis the total the ECL Hars. that the on_account of COC. expenditure inv = 7 Name _ of |COC Total expenditure per qui for delivery of stock to Adani Sila Excess the Centre | payable Expendi- Per qt! ture over reduces after the stocks are consuming States during the remaining part of the year. During RMS 2013-14 to 2015-16, the silo at Kaithal was filled to its capacity during the period of procurement of wheat. | Wheat procurement in Haryana lasts around a month, Any vacant capacity creation during this period, due to rake movement from base silo to Field Silos, can only be filled through direct procurement. Evacuation thereafter would reduce the base silo utilisation in absence of further intake of wheat, It Is to inform that the silo of 2 lakh MTs at Kaithal was constructed as base depot which was linked to the capacities of 50,000 MTs and 25,000 MTs at Navi Mumbai and Hoogli (Bandel) respectively as field depots under Circult-II. Tt is relevant to mention that the silo installed at Bandel became _non-operational towards end of 2013-14 due to some land issues between M/s AALL and Railways. Following the terms of service agreement, the annual guaranteed tonnage for Kaithal was, therefore, reduced to 1,90,049 MTs in 2013-14 and to 1,41,623 MTs in 2024-15. Thus, the guaranteed rent for the Base Silo of Kaithal was passed fot on 2 lakh MTS capacity but on reduced quantum, as stated earlier. Due to reduced —_annual_| COCat. i 2 3 a 5 é 7 Transporta | Debagging | Adani vent | Total (Rs. Per | (Rs.) tion (Rs | charges (Rs. per tl | atl.) tl.) Rs./Qtl per month) Pai 19.54 2.70 15.35 37.56 16.65 ‘Kaul é ) [6.95 2.70 15.35 25.00 4.09 Pundri ) Sanz 270 15.35 29.78 8.87 Pehowa 13.81 2.70 15.35 31.06 10.95, Guarantee tonnage, the payment made to M/s AALL has proportionately got reduced by around 30%. Thus, the observation given by CAG In this regard appears to be not correct, In view of the above, the para may kindly be dropped. (3) ee aeent arreetier ra 7 Foob yerea orweenee | RaTET CORPORATION = cme — fETsray OF INDIA New Det consnnnevtatet ones aprrtsrazat SOETERSonmM a atSommns Line esa SNe Sea Mt No.£.4(23)/15/Stg.1/S&c/P/03 feu fetus Dated 23.11.2017 The General Manager (Region), Food Corporation of India, Regional Office, Punchkula. Sub: CAG draft audit paragraph pertaining to FCI regarding “Avoidable expenditure of Cary over Charges due to non-optimal utilization of vacant capacity at Kaithal silo Rs.5.46 cr", Sir, Please enclosed herewith MoCAFBPD letter No 9-02/2017-Stg--Ill dated 07.11.2017 in respect of CAG draft audit paragraph regarding “Avoidable expenditure of Carry over Charges due to non-optimal utilization of vacant eapacity at Kathal Silo ~Rs. 5.46 Cr" In ‘this regard, you are requested to look into the matter and to furnish reply/comments to Hars, on priority basts so that reply can be submit to CAG and Ministry. Yours faithfully Ge wit 2 General Manager (Stg.&Cont.) Copy to: 1.ED (Zone}, FC. Zonal Office, Noida for information and necessary action please. Se General Manager (Stg.&Cont,) No. 9-02/2017-Stg.-111 GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPAI IT OF FOOD LIC DISTRIBUTI Krishi Bhawan, New Delhi Dated : 07/11/2017 To The Chairman & Managing Director, Food Corporation of India, 16-20, Barakhamba Lane, New Delhi. Subject: CAG draft audit paragraph Pertaining to FCI regarding TAyoldable expenditure of Carry over Charges due to non-optimal utilisation of vacant Capacity at Kaithal silo Rs.5.46 Cr”, This may kindly be treated as “MOST URGENT”. a Encl: As above. Yours faithfully, apie (Rar Chandray Under Secretary to the Govt. of India Tel No.2338 2240 Copy to: SRawan, UNG Secretary, FC Accounts, Department of Food & PD, Krishi Bhawan, New Delhi - with'request to furnish commons the matter. z (2) General Manager (Silos), FCI, 16-20, Barakhamba Lane, New Delhi ~ for necessary action, “Avoidable expenditure of Carry over Charges due to non-optimal utili of vacant capacity at kaithal silo-5.46 crore”, The Para needs to be replied within 3 weeks time from receipt of the same in order to avoid conversion the same into Printed Para. It is therefore, requested to please ensure submission of the reply to the draft para to C&cAG within the schedule time under intimation to Internal Audit Division, : or ree se aoa (stint ait) arta Fear Siio), a. Ur. ATER AAAS % BIE EARL SAA (8702 ‘feeetiay: 17.11.2017 Jo: j Ay 5 Draft Para Food Corporation of India Avoidable expenditure of Carry over Charges due to non-optimal utilisation of vacant capacity at Kaithal sito -% 5.46 crore. Failure in optimal utilisation of vacant eapacity of silo at Kaithal by FCI resulted in avoidable [mimexon sco ofcany or Gus meen nk ee Vv—V<“V

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