Lok Sabha Question No. 5494 (UNSTARRED), answered on 2022-04-05
Subject: Audit of National Dairy Development Board
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: M.K. Vishnu Prasad

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

## DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING

LOK SABHA

UNSTARRED QUESTION NO 5494 TO BE ANSWERED ON 05 TH APRIL 2022

## AUDIT OF NATIONAL DAIRY DEVELOPMENT BOARD

5494 DR. VISHNU PRASAD M.K.:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री be pleased to state:

- (a) the  amount  and  details  of  wasteful  expenditure  pointed  out  by  Comptroller  and Auditor General of India (CAG) in its audit of the National Dairy Plan (NDP) implemented by National Dairy Development Board (NDDB);
- (b) the  point-wise  clarification  provided  by  the  Department  of  Animal  Husbandry  and Dairying (DAHD) to above; and
- (c) the  reasons  why  Department  of  Economic  Affairs  is  yet  to  act  on  the  request  of DAHD sent on 13.03.2020 to audit the accounts of NDDB under section 14(2) of the CAG Act 1971?

## ANSWER

## THE MINISTER FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI PARSHOTTAM RUPALA)

- (a) The CAG team has communicated a draft Para on wasteful expenditure of Rs.2.74 Crore  in  Pilot  Doorstep  Artificial  Insemination  Delivery  Services  (PAIDS)  sub  project  of Shreeja Mahila Milk Producer Company and requested point-wise clarification.
- (b) In  cognizance  to  reply  of  NDDB,  this  Department  vide  letter  dated  25  November 2021 has sent point-wise clarification to the Indian Audit & Accounts Department. A brief account of the point-wise reply sent is given below:
- i) On  CAGs  point  on  sanctioning  of  project  without  clearly  defining  the  area  of operation  between  Shreeja  MMPC  and  Andhra  Pradesh  Livestock  Development Agency (APLDA) leading to duplication of activities, it was replied that under NDP only a pilot doorstep Artificial insemination (AI) programme was taken up in Chittor district by Shreeja Milk producer Company (SMPC). As per scientific norms, on an average 2-3 times AI  is required per breedable bovine for one conception; accordingly, the actual coverage by APLDA was estimated at 45% only instead of

90% claimed. The SMPC was to cover additional 24% of breedable population only on  scientific  basis  to  ensure  greater  conception  rate  and  reduce  dependence  on Government subsidy. The pilot model which was proposed to be set up by SMPC was aimed at recovering the full charge of the AI delivery service by the end of 6 years  unlike  other  AI  Sponsored  Programmes  under  various  Government  schemes and hence it did not overlap with schemes that offer subsidised AI delivery services requiring grant on a continuing basis.

- ii) On  continuation  of  project  implementation  activities  by  SMPC  till  March  2017 despite recommendation of Regional Review (RR) meeting held in July 2016 raised by CAG, it was replied that Central Government did not request NDDB to close the project implementation. However, till the RR meeting held, out of total sanctioned amount of Rs 8.07 Cr to be utilized during 2015-16 & 2016-17, only Rs 2.74 Cr was utilised  to  complete  the  already  ongoing  activities  in  consideration  of  the  decision made by the RR.
- iii) In  case  of  CAG  comments  that  achievement  with  regard  to  conception  rate  was neither holistic nor representative as other parameters like total AI done, coverage of villages and MAIT deployed did not achieve the targeted performance; it was replied that  the  World  Bank  in  its  evaluation  report  had  acknowledged  that  a  higher conception  rate  was  achieved.  The  report  confirms  that  the  quality  of  AI  can  be significantly improved and is testimony to holistic and representative conception rate.
- iv) CAG commented that the audit comments is not on the project as a whole and is on sub-project and World bank report does not justify improper planning and execution of an individual project. In this regard, it was replied that for success of project, it is important to achieve Project Development Objectives (PDOs) and under NDP all the PDO level indicators were achieved.

(c) The question does not arise, as the Department of Economic Affairs vide O.M. No. 8(2)-B(R&C)/2022 dated 04.02.2022 have sent a reply to the Department of AHD.

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