Lok Sabha Question No. 3046 (UNSTARRED), answered on 2018-01-05
Subject: Misuse of Loans by States
Ministry: FINANCE
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 3046 TO BE ANSWERED ON FRIDAY, 05th January, 2018 15 PAUSHA, SAKA 1939

## Misuse of Loans by States

## 3046.  SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of FINANCE be pleased to state:

- a)  the quantum of loans disbursed to the States by the Union Government during the last three years along with the amount outstanding against the States, State/ UT-wise;
- b)  whether the Union Government has taken cognizance of certain misuse of loan amount by the States during the said period, if so, the details thereof; and
- c)  the remedial action taken by the Union Government in this regard?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (a) The details of  loans  advanced by  the  Central  Government to States/  UTs, during last three years from 2014-15 to 2016-17 alongwith the outstanding amount as at the end of 2016-17 are at Annex-I .
- (b) & (c) Certain misuse/ allegations with respect to in-eligible expenditure, procurement  and  fraudulent  practices  were  reported.  These  instances  pertain  to  the World Bank financed Projects of - Emergency Tsunami Reconstruction Project (ETRP), Maharashtra Water Sector Improvement Project (MWSIP), Andhra Pradesh & Telangana  Road  Sector  Project,  Punjab  Rural  Water  Supply  &  Sanitation  Project (PRWSSP)  and  Odisha  State  Road  Project.  Expenditure  found  in-eligible  by  C&AG under  ETRP  has  since  been  refunded.  State  Government  has  lodged  FIR  against defaulting company for submitting false Bank Guarantees in another project (MWSIP).

The loans from Multilateral Development Banks are passed to the State Governments on back to back basis for the socio-economic development of the State. The output of agreed  project  components  and  deliverables  are  well  defined  and  are  regularly monitored through Tripartite Review Meeting and State Review Meeting. Further, C&AG conducts  audit  of  State  expenditure  and  the  audit  report  is  placed  before  the  State Legislature.

| Annex-I to reply to part (a) of Lok Sabha starred question No. 3046 for 05.01.2018   | Annex-I to reply to part (a) of Lok Sabha starred question No. 3046 for 05.01.2018   | Annex-I to reply to part (a) of Lok Sabha starred question No. 3046 for 05.01.2018   | Annex-I to reply to part (a) of Lok Sabha starred question No. 3046 for 05.01.2018   | Annex-I to reply to part (a) of Lok Sabha starred question No. 3046 for 05.01.2018   | Rs. in crore                        |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|-------------------------------------|
| S.No                                                                                 | Name of the States                                                                   | State-wise amount                                                                    | State-wise amount                                                                    | State-wise amount                                                                    | Outstanding of Central loans at the |
| S.No                                                                                 | Name of the States                                                                   | Loans Advanced during 2014-15 #                                                      | Loans Advanced during 2015-16#                                                       | Loans Advanced during 2016-17#                                                       | the 2016-                           |
| 1                                                                                    | Andhra Pradesh                                                                       | 695.41                                                                               | 685.17                                                                               | 814.25                                                                               | 9,304.64                            |
| 2                                                                                    | Arunachal Pradesh                                                                    | -                                                                                    | -                                                                                    | -                                                                                    | 190.38                              |
| 3                                                                                    | Assam                                                                                | 49.66                                                                                | 50.49                                                                                | 57.36                                                                                | 1,235.85                            |
| 4                                                                                    | Bihar                                                                                | 718.25                                                                               | 822.97                                                                               | 1,511.59                                                                             | 9,583.70                            |
| 5                                                                                    | Chattisgarh                                                                          | 8.44                                                                                 | 145.03                                                                               | 381.29                                                                               | 2,056.02                            |
| 6                                                                                    | Goa                                                                                  | 202.88                                                                               | 111.56                                                                               | 91.87                                                                                | 1,076.51                            |
| 7                                                                                    | Gujarat                                                                              | 323.39                                                                               | 252.56                                                                               | 191.07                                                                               | 6,543.79                            |
| 8                                                                                    | Haryana                                                                              | 130.76                                                                               | 97.24                                                                                | 129.59                                                                               | 2,141.93                            |
| 9                                                                                    | Himachal Pradesh                                                                     | 125.31                                                                               | 59.31                                                                                | 101.30                                                                               | 1,072.07                            |
| 10                                                                                   | Jammu & Kashmir                                                                      | 12.15                                                                                | 17.21                                                                                | 24.70                                                                                | 1,111.98                            |
| 11                                                                                   | Jharkhand                                                                            | 138.83                                                                               | 150.91                                                                               | 234.29                                                                               | 2,151.17                            |
| 12                                                                                   | Karnataka                                                                            | 1,365.20                                                                             | 1,271.02                                                                             | 1,917.93                                                                             | 13,766.43                           |
| 13                                                                                   | Kerala                                                                               | 752.47                                                                               | 531.35                                                                               | 852.14                                                                               | 7,594.86                            |
| 14                                                                                   | Madhya Pradesh                                                                       | 1,372.23                                                                             | 1,326.12                                                                             | 1,266.67                                                                             | 13,879.71                           |
| 15                                                                                   | Maharashtra                                                                          | 587.12                                                                               | 575.97                                                                               | 634.80                                                                               | 7,826.61                            |
| 16                                                                                   | Manipur                                                                              | -                                                                                    | -                                                                                    | 16.04                                                                                | 355.47                              |
| 17                                                                                   | Meghalaya                                                                            | 4.77                                                                                 | 2.28                                                                                 | 4.28                                                                                 | 177.63                              |
| 18                                                                                   | Mizoram                                                                              | 19.39                                                                                | 3.80                                                                                 | 6.84                                                                                 | 220.45                              |
| 19                                                                                   | Nagaland                                                                             | 5.43                                                                                 | 0.14                                                                                 | 0.26                                                                                 | 135.59                              |
| 20                                                                                   | Odisha                                                                               | 529.10                                                                               | 739.43                                                                               | 902.98                                                                               | 7,433.07                            |
| 21                                                                                   | Punjab                                                                               | 561.92                                                                               | 265.33                                                                               | 654.94                                                                               | 3,862.99                            |
| 22                                                                                   | Rajasthan                                                                            | 794.11                                                                               | 1,749.12                                                                             | 3,455.35                                                                             | 11,095.72                           |
| 23                                                                                   | Sikkim                                                                               | 10.71                                                                                | 3.09                                                                                 | 3.34                                                                                 | 103.99                              |
| 24                                                                                   | Tamil Nadu                                                                           | 1,517.09                                                                             | 920.88                                                                               | 1,859.74                                                                             | 14,269.98                           |
| 25                                                                                   | Telangana                                                                            | 86.37                                                                                | 1,367.37                                                                             | 956.12                                                                               | 8,061.20                            |
| 26                                                                                   | Tripura                                                                              | 18.80                                                                                | 5.93                                                                                 | 3.61                                                                                 | 225.12                              |
| 27                                                                                   | Uttarakhand                                                                          | 61.00                                                                                | 97.01                                                                                | 146.23                                                                               | 649.80                              |
| 28                                                                                   | Uttar Pradesh                                                                        | 485.98                                                                               | 593.86                                                                               | 1,031.08                                                                             | 13,164.01                           |
| 29                                                                                   | West Bengal                                                                          | 1,362.99                                                                             | 658.95                                                                               | 518.94                                                                               | 12,990.29                           |
|                                                                                      | Total (States)                                                                       | 11,939.76                                                                            | 12,504.10                                                                            | 17,768.60                                                                            | 1,52,280.96                         |
|                                                                                      | UT's                                                                                 |                                                                                      |                                                                                      |                                                                                      |                                     |
| 1                                                                                    | Delhi                                                                                |                                                                                      |                                                                                      |                                                                                      |                                     |
| 2                                                                                    | Pudducherry                                                                          | 72.00                                                                                | 72.00                                                                                | 72.00                                                                                | NA                                  |
|                                                                                      | Total(UTs)                                                                           | 72.00                                                                                | 72.00                                                                                | 72.00                                                                                | NA                                  |
| Grand Total (States/ UTs)                                                            | Grand Total (States/ UTs)                                                            | 12,011.76                                                                            | 12,576.10                                                                            | 17,840.60                                                                            |                                     |

# Source: Section-2 and Additional Disclosure to Statement no. 15 of Union Govt. Finance Accounts

## Source: Office of Chief Controller of Accounts