ARINDAM GANGULY, OP
Bhubaneswar: The Comptroller and Auditor General (CAG) of India has flagged significant financial and implementation lapses in the development of tourism in Odisha’s coastal zone, including a loss of Rs 207.68 crore incurred by the Tourism department in organising seven eco-retreats between 2019-20 and 2023-24. The audit report on the development of tourism in the coastal zone revealed that Rs 898.48 crore allocated for tourism projects had remained parked in bank accounts of nine executing agencies due to reasons such as lack of statutory clearances, administrative approvals and availability of land.
“Of this amount, Rs 806.44 crore, accounting for 89.76%, remained parked in the bank accounts of the Odisha Tourism Development Corporation (OTDC) and the Shamuka Tourism Development Corporation (STDC) for five years,” the report said. The report assessed the Tourism department’s efforts to promote sustainable tourism under the Blue Economy framework in the state’s coastal areas. The audit also found that the department surrendered Rs 103.35 crore from a total budgetary allocation of Rs 2,278.04 crore due to non-utilisation of funds.
Outstanding dues
The CAG pointed out that OTDC failed to recover dues amounting to Rs 10.72 crore from government entities and Rs 72 lakh from private parties for services such as transport, accommodation and lodging. The department and OTDC also failed to operationalise beach shacks, undermining the objective of promoting beach tourism. The lapse resulted in the blockage of Rs 1.25 crore and the loss of potential revenue estimated at Rs 45.50 lakh annually, the report said.
Projects in limbo
The audit highlighted delays and incomplete infrastructure projects despite substantial expenditure. Under the centrally sponsored Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme, infrastructure development projects involving Puri, Shree Jagannath Dham, Ramchandi, the Prachi River at Deuli and Dhauli remained incomplete despite an expenditure of Rs 6.49 crore.
Similarly, projects under Swadesh Darshan scheme at Barakul, Satapada, Tampara and Gopalpur remained incomplete or failed to fulfil their intended objectives despite an expenditure of Rs 41.60 crore. The objective of developing Bindusagar Lake as a tourist attraction could not be achieved even after more than nine years and expenditure of Rs 8.16 crore. Development of Shamuka special tourism area in Puri district also remained incomplete, rendering expenditure of Rs 11.92 crore unfruitful, the report said. Further, the objective of developing three Blue Flag beaches at Niladri, Muhan and Pir Jahania in Puri remained unachieved despite expenditure of Rs 3.78 crore during 2020-25.
Forest laws violated
The CAG also flagged the construction of permanent or semi-permanent structures in sanctuary, national park and proposed reserve forest areas in violation of government guidelines and Forest (Conservation) Act, 1980. The projects included a beachfront promenade at Ramchandi, widening of the approach road along the Puri-Konark Marine Drive and a Panthasala at Talasari. The expenditure on these works amounted to Rs 28.84 crore, the report stated.
20 Panthanivas sans fire safety
Raising concerns over tourist safety, the audit found that 20 Panthanivas were functioning without mandatory fire safety certificates. The report noted that owners and occupiers of hotels, lodgings and guest houses are required to adopt prescribed fire prevention and safety measures to protect lives and property.
The CAG also observed that tourist arrivals in Odisha remained concentrated in a few coastal districts, with Puri and Khordha accounting for 48% of the state’s tourist inflow during 2019-24. The popularity of the Shree Jagannath Temple, the annual Rath Yatra and Puri’s beaches contributed to the concentration of visitors in these two districts.