Bhubaneswar: Construction of tourism infrastructure in protected forest areas in violation of the Forest Conservation Act and operation of 20 government-run Panthanivas without mandatory fire safety certificates, besides substantial financial mismanagement, have come under the spotlight in a CAG audit of Odisha’s coastal tourism sector.
The findings are part of the CAG’s Subject-Specific Compliance Audit of the Department of Tourism’s efforts to promote sustainable tourism under the Blue Economy in the State’s coastal zone.
The audit found that permanent or semi-permanent structures were constructed in sanctuary, national park and protected reserve forest areas in violation of government instructions and the Forest Conservation Act, 1980. Projects included the beach-front promenade at Ramchandi, widening of the Puri-Konark Marine Drive approach road and a Panthasala at Talasari. The expenditure on these works was Rs 28.84 crore.
The CAG also found serious fire safety lapses in government tourist accommodation. Despite mandatory fire prevention and safety measures for hotels, lodgings, and guest houses, 20 government-owned Panthanivas were operating without mandatory fire safety certificates.
On financial management, the Tourism Department surrendered Rs 103.35 crore from a budget allocation of Rs 2,278.04 crore due to non-utilisation. Another Rs 898.48 crore meant for tourism projects remained parked in the bank accounts of nine executing agencies because of issues such as lack of statutory clearances, administrative approvals and land.
Of this, Rs 806.44 crore, or nearly 90 per cent, remained parked with OTDC and STDC for five years.
The audit also flagged non-realisation of Rs 10.72 crore from government agencies and Rs 72 lakh from private parties by OTDC for transport, accommodation and lodging services.
Organising seven Eco-Retreat events resulted in a cumulative loss of Rs 207.68 crore during the audit period, the CAG said.
The department and OTDC also failed to operationalise beach shacks, defeating the objective of promoting beach tourism. This resulted in a blockage of Rs 1.25 crore and a loss of potential revenue of Rs 45.50 lakh annually.
Several tourism infrastructure projects were also found incomplete despite substantial expenditure. The PRASAD project involving infrastructure development at Puri and other locations remained incomplete despite an expenditure of Rs 6.49 crore. Similarly, projects under the Swadesh Darshan scheme at Barkul, Satpada, Tampara, and Gopalpur remained incomplete despite expenditure of Rs 41.60 crore.
The Bindusagar Lake development project failed to achieve its objective even after more than nine years and an expenditure of Rs 8.16 crore. The Shamuka special tourism area project in Puri district also remained incomplete despite an expenditure of Rs 11.92 crore, rendering the expenditure unfruitful.
The objective of developing three Blue Flag beaches at Niladri, Muhan, and Pir Jahania in Puri also remained unachieved despite the expenditure of Rs 3.78 crore during 2020-25.
The audit further noted that tourist inflow remained heavily concentrated in Puri and Khordha, which together accounted for 48 per cent of the State’s tourist arrivals during 2019-24. The premier audit agency suggested greater focus on developing cultural, ecological, and heritage tourism sites in other coastal districts to diversify tourist destinations and tap their potential.