19

CHAPTER I
PUBLIC ACCOUNTS COMMITTEE
I. Election and Composition
The Public Accounts Committee for the year 2011-12 was constituted on 1 May, 2011. It consisted of fifteen Members from Lok Sabha and seven Members from Rajya Sabha elected from amongst the Members of the respective Houses. The term of the Committee ended on 30th April, 2012. 1.2 Dr. Murli Manohar Joshi, MP and a Member of the Committee was appointed
st

as Chairman by the Speaker vide Bulletin Part II dated 30th April, 2011. The composition of the Committee (2011-12) is indicated at Appendix-I. 1.3 Consequent upon the appointment of Smt. Jayanti Natarajan, a Member from

Rajya Sabha as Minister of Environment and Forests with effect from 12th July, 2011, Shri J.D. Seelam, a Rajya Sabha Member, was elected as a Member of Public Accounts Committee with effect from 29th August, 2011.

II.
1.4

Subjects selected for examination

The Public Accounts Committee selected 37 Subjects/Audit paragraphs for

detailed examination during 2011-12. The details of these subjects are indicated at Appendix-II. The Committee had initially taken up 18 subjects for detailed examination. This had been notified vide Bulletin Part II dated 26th May, 2011. Out of these 18 Subjects, 4 subjects at Sl. Nos 8, 11, 12 and 13 of Appendix-II were originally selected by the predecessor Committee. As the examination of these 4 subjects could not be completed by the earlier Committee, the subjects were reselected for detailed examination during 2011-12. In due course, the Committee had selected 13 additional subjects, which was notified vide Bulletin Part II dated 13th September, 2011. Subsequently, 4 more subject were selected which was notified vide Bulletin Part-II dated 30th September 2011. Again, 2 more subjects were selected which was notified vide Bulletin Part II dated 20th January, 2012. Thus, a total number of 37 subjects were selected by the Committee for detailed

20

examination during 2011-12, out of which 4 subjects were carried forward and 33 subjects were selected afresh.

III.
1.5

Constitution of Sub-Committees.
Two Sub-Committees of the Public Accounts Committee were constituted for

the term 2011-12 and the matter was notified vide Bulletin Part-II dated 6th July, 2011. In addition to these two Sub-Committees, two more Sub-Committees were constituted this was to examine notified the subjects during the Part year 2011-12 II and dated

vide

Bulletin

12th September, 2011.

These Sub-Committees were entrusted with the work of

examination of the following subjects as indicated against each of them:

(i)

Sub-Committee-I

"Members of Parliament Local Area Development Scheme".

(ii)

Sub-Committee-II

"Activities of National Remote Sensing Centre".

(iii)

Sub-Committee-III

"Prasar Bharti - Loss of Revenue"; "Cochin Port Trust-Loss of Revenue"; "Jawaharlal Nehru Port Trust Improper Planning in Construction of Road embankment Resulting in Idle Investment"; and "Mumbai Port Trust Loss of Revenue". "Railways Finances" and "Tatkal and Advance Reservation System in Indian Railways"; "Construction of New Lines on Socio-Economic Considerations"; "Excessive Delays in Maintenance of Locomotives"; and "Functioning of Rail Vikas Nigam Limited".

(iv)

Sub-Committee-IV

1.6 The composition of each of the Sub-Committees is indicated at Appendix III. IV. (a) 1.7 Review of Work Done Sittings of the Committee/Sub-Committees During the period under review, 27 sittings (21 sittings of the Main Committee

and 06 sittings of the Sub-Committees) were held. The total duration of these sittings was 51 hours and 50 minutes, the breakup being 43 hours and 50 minutes pertaining to the Main Committee and 08 hours for the three Sub-Committees. A

21

statement showing details of the dates and duration of each sitting, the number of Members present and subjects discussed is given at Appendix-IV. Another statement showing details of the number of sittings of the Committee attended by each Member is given at Appendix-V. Similarly, the details of the dates and duration of sittings of the Sub-Committees of the Public Accounts Committee (201112) are given at Appendix-VI. (b) 1.8 Examination of Accounts and Audit Reports. In the course of examination of Accounts and Audit Reports, the Public

Accounts Committee studied the relevant material on the various paragraphs contained in the Reports of the C&AG of India besides undertaking examination of the four Appropriation Accounts of the Union Government for the year 2009-10 relating to Civil, Postal Services, Defence Services and Railways. (c) 1.9 Visit for on-the-spot study The Committee did not undertake any on-the-spot study visit during the year

2011-12. (d) 1.10 Proceedings & Minutes The verbatim proceedings of the sittings containing evidence tendered by the

witnesses who appeared before the Committee were kept on record. The Minutes of the sittings of the Committee were prepared and presented to the House along with the Reports concerned.

V.
(a) 1.11

Reports Finalised and Presented

Original Reports The Committee finalized and presented the following Original Reports to the

House during the period under review: Sl. No.

1. 2. 3.

Report No.
35th 38th 40
th

Subject
"Accelerated (ARWSP)" Rural Water Supply Programme

Date of Presentation
11.08.2011 11.08.2011 19.12.2011

"Non Lapsable Central Pool of Resources Scheme" "Excesses over Voted Appropriations (2009-10)" Grants and Charged

22

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

41st 42nd 43rd 47th 48th 52

nd

"Negligent Scrutiny of Claims Leading to Excess Payment" "Uneconomic Branch Lines in Indian Railways" "Idle Investment on a New Line" "Supply Chain Management of Rations in Indian Army" "Canteen Stores Department" "Training of Pilots in the Indian Air Force" "Abnormal Delay in Execution of Ordnance Factory Project Nalanda" "Member of Parliament Local Area Development Scheme" "Review of Grant No. 1 Department of Agriculture and Cooperation" "Performance of the Ministry of Environment and Forests" "Non-Compliance by Ministries/Departments in timely Submission of Action Taken Notes on the Non-Selected Audit Paragraphs (2010-11)" "Functioning of Land and Development Office"

19.12.2011 19.12.2011 19.12.2011 28.12.2011 28.12.2011 30.03.2012 30.03.2012 30.03.2012 27.04.2012 27.04.2012 27.04.2012

53rd 55th 56th 57th 58th 59th

15.

27.04.2012

(b) 1.12 Sl. No.

1.

Action Taken Reports The following Action Taken Reports were also presented to the House: Report No.
36th

Subject
Action Taken on the 7th Report th (15 Lok Sabha) on "Excesses over Voted Grants and Charged Appropriations (2007-08)" Action Taken on the 18th Report th (15 Lok Sabha) on "Procurement of Stores and Inventory Control" Action Taken on the 12th Report th (15 Lok Sabha) on "Functioning of A.D.G.E.S. Radar, Procurement of Special Clothing and Mountaineering Equipment and Delay in Execution/Renewal of lease" Action Taken on the 81st Report th (14 Lok Sabha) on "Operation and Maintenance of an Aircraft Fleet in the Indian Air Force" Action Taken on the 11th Report (15th Lok Sabha) on "Non-Compliance by Ministries/Departments in timely Submission of Action Taken Notes on the Non-Selected Audit Paragraphs of the C&AG" Action Taken on the 13th Report th (15 Lok Sabha) on "Revenue Loss due to Delay in levy of Toll Fees"

Date of Presentation
11.08.2011

2.

37th

11.08.2011

3.

39th

11.08.2011

4.

44th 45th

19.12.2011

5.

19.12.2011

6.

46th

19.12.2011

23

7.

49th 50th 51st 54th

8.

9.

10.

Action Taken on the 14th Report th (15 Lok Sabha) on "Administration of Universal Service Obligation (USO) Fund" Action Taken on the 16th Report th (15 Lok Sabha) on 'Disaster Management and Land Management in Indian Railways' Action Taken on the 19th Report th (15 Lok Sabha) on "Freight and Wagon Management on Indian Railways" Action Taken on the 23rd Report th (15 Lok Sabha) on "Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme"

28.12.2011

28.12.2011

28.12.2011

30.03.2012

1.13

The following table indicates the analysis of action taken by Government on

the recommendations made by the Committee in the earlier Reports upon which the above cited Action Taken Reports were presented during the year 2011-12:

Total No. of Recommendations

Total No. of recommendations accepted by Government

Total No. of recommendations which the Committee did not pursue in view of Govt. replies

Total No. of recommendations in respect of which replies of Govt. had not been accepted by Committee and requires reiteration

Total no. of recommendations in respect of which final replies of Govt. are awaited

156

127 (81.41%)

05 (3.21%)

18 (11.54%)

06 (3.84%)

(c)

Action Taken Statements

1.14 Besides the abovementioned 15 Original and 10 Action Taken Reports which
were presented to the House, 6 Statements of Action Taken Notes on Action Taken Reports (14th Lok Sabha and 15th Lok Sabha) of the Committee pertaining to various Ministries/Departments were also laid on the Table of both the Houses.

VI.
1.15

Secretariat
The Public Accounts Committee Branch functions as the Secretariat of the

Committee. A Director as the nodal officer, an Additional Director, two Deputy Secretaries and three Under Secretaries constituted the functioning of the Branch. A Joint Secretary remained overall in charge of the Committee Secretariat.

24

1.16

The Public Accounts Committee, on the basis of relative importance, selected

various paragraphs from different Audit Reports for in-depth examination. During the year 2011-12, the Secretariat examined four Appropriation Accounts of the Union Government for the year 2009-10 and also undertook an exhaustive study of the Audit Paragraphs and the Memoranda of Important Points as furnished by the Office of the Comptroller and Auditor General of India apart from going through other relevant material such as Press Clippings, Websites, Questions/Debates in Parliament, literature and publications on the subjects, etc. Based on the studies so conducted, the Secretariat framed questionnaires for eliciting further information from the Ministries/Departments concerned. After approval, these questionnaires were sent to the Ministries/Departments concerned for obtaining replies. Based on the replies received, the lines for enquiries by the Committee during evidence were suggested to the Members of the Committee in the form of List of Points. The Verbatim proceedings of the evidence were subsequently studied by the Secretariat and post evidence questionnaires sent to the Ministries/Departments concerned for elucidation and elaboration of points arising out of evidence. 1.17 The Secretariat undertook an in-depth study of all the material relating to the

subjects under examination including background notes, advance information, material from Parliamentary and Committee proceedings and the replies to the questions raised subsequent to evidence. Thereafter relevant points/issues were culled out of the material gathered and Reports were drafted and submitted to the Chairman or the Conveners of the Sub-Committees (in case the subject was examined by a Sub-Committee) for approval. After approval by the Chairman, the Secretariat circulated the draft Reports for consideration and adoption by the Committee. All these draft Reports were also got factually verified from the Office of the Comptroller and Auditor General of India and from the Ministry of Defence for the Reports pertaining to that Ministry. On adoption of these Reports by the Committee, the Secretariat took steps for their presentation, printing, circulation etc. as per the established procedure. 1.18 Consequent upon the presentation of the Reports, copies thereof were

forwarded to the Ministries/Departments concerned with the request to furnish requisite number of Action Taken Notes/Replies on the

Observations/Recommendations contained in the Reports. After the receipt of the Action Taken Notes/Replies, the Secretariat processed them and prepared Action

25

Taken Reports, categorising the replies according to the prescribed pattern.

The

draft Action Taken Reports were thereafter submitted to the Chairman for his approval. After being approved and factually verified from the Office of C&AG, these Reports were circulated to the Members for consideration and adoption by the Committee. The Reports so adopted were presented to both the Houses of

Parliament and forwarded to the Ministries/Departments concerned for furnishing final Action Taken Notes/Replies on the Observations/Recommendations contained therein. After the receipt of the final Action Taken Notes/Replies, steps were taken to process and lay them in a Statement form on both the Houses of Parliament. 1.19 The Secretariat also followed up and initiated action to process

remedial/corrective Action Taken Notes from the Ministries/Departments on all those Audit paras which were not selected by the Committee for detailed examination. 1.20 Besides, the Parliamentary Questions received from Question Branch and

RTI applications received from Information Cell/Committee Coordination Branch were examined/scrutinized. The representations addressed to Chairman, PAC were also processed by the Secretariat. 1.21 Thus, the Secretariat dealt with the studying of all the relevant materials,

preparation of Questionnaires/List of Points, drafting of Reports and their presentation, printing, circulation etc. besides the execution of other related job of the Committee.

26

Appendix-I
(vide Para 1.2)

Composition of the Public Accounts Committee

(2011-12)

Dr. Murli Manohar Joshi

LOK SABHA
2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 14. 15. Shri Anandrao Vithoba Adsul Dr. Baliram Shri Sandeep Dikshit Shri Anant Kumar Hegde Shri Bhartruhari Mahtab Shri Shripad Yesso Naik Shri Sanjay Nirupam Shri Jagdambika Pal Dr. Kavuru Sambasiva Rao Shri Adhi Sankar Kunwar Rewati Raman Singh Shri K. Sudhakaran Dr. M. Thambidurai Dr. Girija Vyas RAJYA SABHA 16. 17. 18. 19. 20. 21. 22.
*

Chairman

Shri Tariq Anwar Shri Prasanta Chatterjee Shri Naresh Gujral Shri Prakash Javadekar Shri Satish Chandra Misra *Shri J.D. Seelam Prof. Saif-ud-Din Soz
Elected w.e.f. 29 August 2011 vide the vacancy occurred vice Smt. Jayanti Natarajan appointed th Minister w.e.f. 12 July, 2011
th

____________________________________

27

Appendix-II
(vide Para 1.4)

SUBJECTS SELECTED BY THE PUBLIC ACCOUNTS COMMITTEE FOR EXAMINATION DURING 2011-12
Sl. No. Report No. Paragraph/ Chapter No. Subject Ministry/ Department concerned

1.

Non-compliance by Ministries/Departments in timely submission of Action Taken Notes on the Nonselected Audit Paragraphs of the C&AG Negligent Scrutiny of claims leading to excess payment

Finance (Department of Expenditure)

2. CA 2 of 2008 Union Government (Autonomous Bodies) 3. CA 4 of 2008 Union Government (Defence Services) Compliance Audit 4. PA 5 of 2008 Union Government (Defence Services) (Performance Audit) 5. PA 12 of 2008 Union Government (Civil) (Performance Audit)

Para 7.1

Information and Broadcasting

Para 6.3

Abnormal delay in execution of ordnance factory Project Nalanda

Defence

Chapter II

Training of Pilots in IAF

Defence

Entire Report

Accelerated Rural Water Supply Programme (ARWSP)

Rural Development (Department of Drinking Water and Sanitation)

6. CA 19 of 2008-09 Union Government (Railways) 7. CA 19 of 2008-09 Union Government (Railways) 8. 6 of 2009-10 Union Government (Civil) (Performance Audit)

Para 2.5.1

Uneconomic Branch Lines in Indian Railways

Railways

Para 3.1.1

Idle investment on a new line

Railways

Entire Report

Functioning of Land and Development office.

Urban Development

28

9. 1 for the year 2010-11, Union Government (Accounts of the Union Government)

Para Nos. 7.1, 7.2 and 7.3

Excesses Over Voted Grants and Charged Appropriations (200910)

Defence, Home Affairs, Communications and IT (Department of Posts and Department of Telecommunication) and Railways Agriculture

10. 1 for the year 2010-11, Union Government (Accounts of the Union Government)

Chapter 8

Review of Selected Grants (i) Grant No. 1 Department of Agriculture and Cooperation (Ministry of Agriculture), Paras 8.1 to 8.12 (ii)Grant No. 57 Department of School Education and Literacy (Ministry of Human Resource Development), Paras 8.21 to 8.28

Human Resource Development

11. PA 5 of 2010-11, Union Government (Civil) (Performance Audit) 12. 6 of 2010-11, Union Government (Defence Services Army) (Performance Audit) 13. 14 of 2010-11, Union Government (Defence Services) (Performance Audit) 17 of 2010-11, Union Government (Scientific Departments)

Entire Report

Non-Lapsable Central Pool of Resources Scheme

Development of North-Eastern Region

Entire Report

Supply Chain Management of Rations in Indian Army

Defence

Entire Report

Canteen Stores Department

Defence

14.

Entire Report

Performance of the Ministry of Environment and Forests

Environment & Forests

15. 21 of 2010-11, Union Government (Scientific Departments) (Performance Audit)

Entire Report

Activities of National Remote Sensing Centre

Department of Space

29

16. 31 of 2010-11, Union Government (Performance Audit) 17. 32 of 2010-11, Union Government (Defence Services Air Force and Navy) 18. 35 of 2010-11, Union Government (Defence Services Army and Ordnance Factories) (Performance Audit)

Entire Report

Member of Parliament Local Area Development Scheme

Statistics and Programme Implementation Defence

Entire Report

Indigenous Construction of Indian Naval Warships

Entire Report

Defence Estates Management

Defence

Additional Subjects selected by PAC 19. 33 of 2010-11 Union Government (Railways) 34 of 2010-11 Union Government (Railways) 34 of 2010-11 Union Government (Railways) 34 of 2010-11 Union Government (Railways) 34 of 2010-11 Union Government (Railways) 38 of 2010-11 Union Government (Civil) Autonomous Bodies 38 of 2010-11 Union Government (Civil) Autonomous Bodies 38 of 2010-11 Union Government (Civil) Autonomous Bodies Entire Report Paragraph 2.2 Railways Finances. Railways

20.

Tatkal and Advance Reservation System in Indian Railways. Construction of new lines on socio-economic considerations. Excessive delays in maintenance of locomotives. Functioning of Rail Vikas Nigam Limited. Prasar Bharati Loss of Revenue.

Railways

21.

Paragraph 3.1

Railways

22.

Paragraph 4.1 Paragraph 7.2 Paragraph 5.1

Railways

23.

Railways

24.

Information and Broadcasting

25.

Paragraph 8.4 Paragraph 8.5

Cochin Port Trust Loss of Revenue Jawaharlal Nehru Post Trust Improper Planning in Construction of Road Embankment Resulting in Idle Investment.

Shipping

26.

Shipping

30

27.

38 of 2010-11 Union Government (Civil) Autonomous Bodies 6 of 2011-12 Union Government (Civil) 7 of 2011-12 Union Government (Defence Services) Cost Guard 8 of 2011-12 Union Government (Civil)

Paragraph 8.8

Mumbai Port Trust Loss of Revenue. XIXth Commonwealth Games, 2010. Role and Functioning Indian Coast Guard. of

Shipping

28.

Entire Report Entire Report

Youth Affairs and Sports Defence

29.

30.

Entire Report

Fertilizer Subsidy.

Chemicals and Fertilizers (Department of Fertilizers) Defence

31.

11 of 2011-12 Union Government (Defence Services) 10 of 2011-12

Union Government (Scientific Departments) (Performance Audit)

Entire Report

Adarsh Co-operative Housing Society, Mumbai.

32.

Entire Report

Role of Tea Board in Tea Development in India

Commerce and Industries

33.

15 of 2011-12
Union Government (Indirect Taxes Service Tax and Customs) (Performance Audit)

Entire Report

Service Tax on Banking and other Financial Services and Duty Drawback Scheme

Finance (Department of Revenue)

34.

18 of 2011-12
Union Government (Civil) (Performance Audit)

Entire Report

Performance of Aviation in India

Civil

Civil Aviation

35.

19 of 2011-12
Union Government (Civil) (Performance Audit)

Entire Report

Performance Hydrocarbons Production Contracts

of Sharing

Petroleum and Natural Gas

36.

21 of 2011-12 Union Government (Scientific Departments) Performance Audit

Entire Report

Water Pollution in India

Environment and Forests

31

37.

26 of 2011-12 Union Government (Civil) (Performance Audit)

Entire Report

Sale and Distribution of Imported Pulses

(i) Consumer Affairs, Food and Public Distribution and (ii) Commerce and Industry

32

Appendix - III
(vide Para 1.6)

COMPOSITION OF THE SUB-COMMITTEES OF THE PUBLIC ACCOUNTS COMMITTEE (2011-12) Sl. Sub-Committees No.
1. Sub-Committee-I

Convener
Shri Bhartruhari Mahtab (i) (ii) (iii) (iv) (v)

Member
Shri Adhi Sankar Dr. M. Thambidurai Shri Naresh Gujral Shri Prakash Javadekar Shri Satish Chandra Misra

2.

Sub-Committee-II

Dr. Girija Vyas

(i) (ii) (iii) (iv) (i) (ii) (iii) (iv)

Shri Anandrao Vithoba Adsul Kunwar Rewati Raman Singh Shri K. Sudhakaran Shri Tariq Anwar Dr. Baliram Shri Sandeep Dikshit Shri Shripad Yesso Naik Shri Sanjay Nirupam

3.

Sub-Committee-III

Dr. Kavuru Sambasiva Rao

4.

Sub-Committee-IV

Shri Anant Kumar Hegde

(i) (ii) (iii) (iv)

Shri Jagdambika Pal Shri Prasanta Chatterjee Shri J. D. Seelam Prof Saif-ud-Din Soz

33

Appendix-IV
(vide Para 1.7)

Statement showing the details of the dates and duration of the sittings of the Public Accounts Committee (2011-12) [Main Committee]
Sl. No Date sitting of Time From To Duration Hrs No. of Subject discussed Members Mins present

[1]
1.

[2]
23.05.2011

[3]
1100

[4]
1220

[5]
01

[6]
20

[7]
19

[8]
Consideration of Memorandum No. 1 regarding Selection of Subjects for examination during the year 2011-12. Consideration and Adoption of Draft Reports. Oral evidence of the representatives of the Ministry of Urban Development on the subject "Functioning of Land and Development Office" based on C&AG Report No. 6 of 2009-10, Union Government (Civil)(Performance Audit). Oral evidence of the representatives of the Ministry of Environment and Forests on the subject Performance of the Ministry of Environment and Forests based on C&AG Report No. 17 of 2010-11, Union Government (Scientific Departments). (i) Further oral evidence of the representatives of the Ministry of Environment and Forests on the subject "Performance of the Ministry of Environment and Forests" based on C&AG Report No. 17 of 2010-11, Union Government (Scientific Departments). (ii) Consideration of Memorandum No.2 regarding selection of additional subjects for detailed examination during the year 2011-12. Consideration and adoption of Draft Reports.

2.

28.06.2011

1100

1330

02

30

19

3.

19.07.2011

1100

1400

03

00

18

4.

28.07.2011

1100

1320

02

20

16

5.

05.09.2011

1500

1725

02

25

14

6.

23.09.2011

1130

1330

02

00

16

34

7.

23.09.2011

1500

1700

02

00

15

Oral evidence of the representatives of the Ministry of Agriculture (Department of Agriculture and Cooperation) on the subject "Review of Selected Grants Grant No. 1" based on C&AG Report No. 1 of 2010-11 (Para Nos. 8.1 to 8.12). Briefing by the representatives of the Ministry of Youth Affairs and Sports (Department of Sports) on the subject "XIXth Commonwealth Games, 2010" based on C&AG Report No. 6 of 2011-12. Briefing by the representatives of the Ministry of Defence on the subject "Adarsh Co-operative Housing Society Mumbai" based on C&AG Report No 11 of 2011-12. Oral evidence of Shri R.P. Singh, former Director General of Audit (P&T), Audit on his reported difference of opinion with the C&AGs calculation of presumptive losses on allocation of 2G Spectrum in 2007-08. Briefing by the representatives of the Ministry of Petroleum and Natural Gas on the subject "Performance of Hydrocarbon Production Sharing Contracts" based on C&AG Report No. 19 of 2011-12. Consideration and Adoption of Draft Reports. Oral evidence of the representatives of the Ministry of Civil Aviation on the subject "Performance of Civil Aviation in India" based on C&AG Report No. 18 of 2011-12. Oral evidence of the representatives of the Ministry of Petroleum & Natural Gas on the subject "Performance of Hydrocarbon Production Sharing Contracts" based on C&AG Report No. 19 of 2011-12. (i) Further Oral evidence on the

8.

10.10.2011

1100

1345

02

45

18

9.

10.10.2011

1500

1630

01

30

15

10.

31.10.2011

1100

1200

01

00

18

11.

17.11.2011

1100

1330

02

30

17

12.

21.12.2011

1500

1545

00

45

14

13.

11.01.2012

1430

0500

02

30

09

14.

12.01.2012

1130

1330

02

00

13

1445

1600

01

15

13

35

15.

19.01.2012

1130

1415

02

45

11

same subject. (ii) Selection of Additional subjects for detailed examination during the year 201112. Oral evidence of the representatives of NACIL (now renamed as Air India) on the subject "Performance of Civil Aviation in India" based on C&AG Report No. 18 of 2011-12. Oral evidence of the representatives of Reliance Industries Limited on the subject "Performance of Hydrocarbon Production Sharing Contracts" based on C&AG Report No. 19 of 2011-12.

16.

03.02.2012

1130

1400

02

30

12

17.

22.02.2012

1100

0130

02

30

16

Oral evidence of the representatives of Indian Airlines Officers Association, Indian Aircraft Technicians Association, Air India Aircraft Engineers Association and Airlines Ground Instructors Association on the subject "Performance of Civil Aviation in India" based on CAG Report No. 18 of 2011-12. Briefing by the representatives of the Ministry of Consumer Affairs, Food and Public Distribution (Department of Food and Public Distribution and Department of Consumer Affairs) and the Ministry of Commerce and Industry (Department of Commerce) on the subject "Sale and Distribution of Imported Pulses" based on C&AG Report No. 26 of 2011-12 Union Government (Civil) (Performance Audit). Consideration and Adoption of the Draft Reports on the following subjects: (i) "Training of Pilots in the Indian Air Force" based on the C&AG Report No. 5 of 2008 of Chapter II; (ii) "Abnormal Delay in Execution of Ordnance Factory Project NALANDA" based on the C&AG Report Nos. 4 of 2008 of

18.

28.02.2012

1500

1700

02

00

07

19.

22.03.2012

1500

1600

01

00

11

36

Para No. 6.3 and 15 of 2010-11of Chapter II; (iii) "Member of Parliament Local Area Development Scheme (MPLADS)" based on the C&AG Report No. 31 of 2010-11; and (iv) Action Taken by the Government on the Observations/Recommendations of the Committee contained in their Twenty-third Report (15th Lok Sabha) on "Assistance to States for Developing Export Infrastructure and Allied Activities Scheme". 20. 17.04.2012 1030 1245 02 15 09 Presentation by and interaction with the Comptroller & Auditor General of India on the subject "Performance of Hydrocarbon Production Sharing Contracts" (C&AG Report No. 19 of 2011-12). Consideration and Adoption of the Draft Reports on the following subjects: (i) "Review of Grant No. 1 Department of Agriculture & Cooperation" based on the C&AG Report No. 1 of 2010-11 (Paras 8.1 to 8.12 of Chapter VIII); (ii) "Performance of the Ministry of Environment and Forests" based on the C&AG Report Nos. 17 of 2010-11 (Para No. 6.3) and 15 of 2010-11 (Chapter II); (iii) "Noncompliance by the Ministries/Departments in timely submission of Action Taken Notes on non-selected Audit Paragraphs 2010-11"- relating to the Ministry of Finance; and (iv) "Functioning of Land and Development Office" based on C&AG Report No. 6 of 2009-10.

21.

24.04.2012

1500

1600

01

00

08

________________________________________________________

37

Appendix-V
(vide Para 1.7)

Statement showing the number of sittings attended by each Member of the Public Accounts Committee (2011-12) [Main Committee]
Total number of sittings held from 1st May, 2011 to 30th April, 2012 - 21 Sl. No. Name of the Member No. of sittings attended

Dr. Murli Manohar Joshi

Chairman

21

LOK SABHA
2.

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

16. 17. 18. 19. 20. 21. 22.

Shri Anandrao Vithoba Adsul Dr. Baliram Shri Sandeep Dikshit Shri Anant Kumar Hegde Shri Bhartruhari Mahtab Shri Shripad Yesso Naik Shri Sanjay Nirupam Shri Jagdambika Pal Dr. Kavuru Sambasiva Rao Shri Adhi Sankar Kunwar Rewati Raman Singh Shri K. Sudhakaran Dr. M. Thambidurai Dr. Girija Vyas

---------------

19 04 12 10 19 14 17 14 13 12 06 11 09 17

RAJYA SABHA
Shri Tariq Anwar Shri Prasanta Chatterjee Shri Naresh Gujral Shri Prakash Javadekar Shri Satish Chandra Misra *Shri J.D. Seelam Prof. Saif-ud-Din Soz
-------15 14 16 17 05 10 18

Elected w.e.f. 29 August 2011 vide the vacancy occurred vice Smt. Jayanti Natarajan (attended th only 2 Sittings) appointed Minister w.e.f. 12 July, 2011

th

38

Appendix-VI
(vide Para 1.7)

Statement showing the details of the dates and duration of the sittings of the Sub-Committees of Public Accounts Committee (2011-12)
Sl. No [1] Date sitting [2] of Time From [3] To [4] Duration Hrs [5] No. of Subject discussed Members Mins present [6] [7] [8]

SUB-COMMITTEE - I 1. 03.10.2011 1500 1630 01 30 05 Briefing by the representatives of the Ministry of Statistics and Programme Implementation on the subject "Member of Parliament Local Area Development Scheme" based on C&AG Report No. 31 of 2010-11. Further evidence of the representatives of the Ministry of Statistics and Programme Implementation on the subject "Member of Parliament Local Area Development Scheme" based on C&AG Report No. 31 of 2010-11. Internal discussion on the Draft Report on "Member of Parliament Local Area Development Scheme" based on C&AG Report No. 31 of 2010-11. Consideration of the Draft Report on "Member of Parliament Local Area Development Scheme" based on C&AG Report No. 31 of 2010-11.

2.

24.10.2011

1500

1635

01

35

03

3.

30.01.2012

1130

1240

01

10

02

4.

07.03.2012

1130

1230

01

00

03

SUB-COMMITTEE - II 1. 11.01.2012 1130 1215 00 45 02 Evidence of the representatives of the Department of Space on "Activities of National Remote Sensing Centre" based on C&AG Report No. 21 of 2010-11.

39

SUB-COMMITTEE IV 1. 21.02.2012 15:00 17:00 02 00 03 Briefing by the representatives of the Ministry of Railways on the subjects "Railways Finances" based on C&AG Report No. 33 of 2010-11 and "Tatkal and Advance Reservation System in Indian Railways", "Construction of New Lines on Socio/Economic Considerations", "Excessive Delays in Maintenance of Locomotives" and "Functioning of Rail Vikas Nigam Limited" based on C&AG Report No. 34 of 201011.

40

CHAPTER II COMMITTEE ON ESTIMATES

I. Election and Composition
2.1 The Committee on Estimates (Fifteenth Lok Sabha) for the year 2011-12 was

constituted on 1st May, 2011. The term of the Committee ended on 30th April, 2012. 2.2 The Committee, consisting of 30 Members of Lok Sabha, was declared

elected on 1st May, 2011. The Speaker appointed Shri Francisco Sardinha, a Member of the Committee, as the Chairman of the Committee on 1 st May 2011. The Composition of the Committee is given at Appendix VII.

II. Subjects selected for Examination

2.3 The Committee on Estimates selected the following subjects for examination

during the year 2011-12:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Power Generation Demand & Supply [Ministry of Power] Development and Regulation of Civil Aviation [Ministry of Civil Aviation] Tourism in India with particular reference to Eco-Tourism [Ministry of Tourism] Procurement and Storage of Foodgrains [Ministry of Consumer Affairs, Food & Public Distribution] Planning and Implementation of Railway Projects [Ministry of Railways] National Health Policy with special reference to Women & Child Mortality in India [Ministry of Health & Family Welfare] Coastal Security Scheme [Ministry of Home Affairs] Tribal Welfare Schemes [Ministry of Tribal Affairs] Use and effects of pesticides and herbicides with particular reference to Endosulfan [Ministry of Agriculture] Agricultural Pricing Policy [Ministry of Agriculture] Water Management in India [Ministry of Water Resources] Role and functioning of Telecom Operators in Mobile Telephony [Ministry of Communications and Information Technology]

41

13. 14. 15. 16. 17. 18. 19.

Development of drought-prone areas [Ministry of Rural Development ] Scientific Management of e-waste in India [Ministry of Environment and Forests] Functioning of Doordarshan and All India Radio [Ministry of Information and Broadcasting] Central Silk Board [Ministry of Textiles] Subsidizing of Petroleum Products [Ministry of Petroleum and Natural Gas] Central Board of Excise and Customs [Ministry of Finance] Kisan Credit Card Scheme [Ministry of Finance]

III.

Review of Work Done

(a) Sittings of the Committee 2.4 During the term, the Committee on Estimates held 17 sittings lasting for 37

hours and 45 minutes. A detailed statement showing the dates of sittings of the Committee on Estimates held during the period under review, the duration of the sittings, the number of Members present and the subjects discussed is given in Appendix VIII. 2.5 The statement showing the number of sittings of the Committee attended by

each member is given in Appendix IX. (b) Material furnished to the Committee 2.6 The details of the material furnished by Ministries/Departments to the

Committee on the subjects under examination are as follows:S.No. Name of the Subject Ministry No. of typed / printed page(s) 200 350 140

1 2 3

Power Generation Demand & Supply Ministry of Power Development and Regulation of Civil Aviation Tourism in India with particular reference to Eco-Tourism Ministry of Civil Aviation Ministry of Tourism

42

Procurement and Storage of Foodgrains Planning and Implementation of Railway Projects National Health Policy with special reference to Women & Child Mortality in India Tribal Welfare Schemes Use and effects of pesticides and herbicides with particular reference to Endosulfan Agricultural Pricing Policy Water Management in India Role and functioning of Telecom Operators in Mobile Telephony

Ministry of Consumer Affairs, Food and Public Distribution Ministry of Railways Ministry of Health and Family Welfare Ministry of Tribal Affairs Ministry of Agriculture

91

5 6

120 45

7 8

82 37

9 10 11

Ministry of Agriculture Ministry of Water Resources Ministry of Communications and Information Technology Ministry of Environment and Forests Ministry of Information and Broadcasting Ministry of Textiles Ministry of Petroleum and Natural Gas Ministry of Finance Ministry of Finance

08 31 278

12

Scientific Management of e-waste in India Functioning of Doordarshan and All India Radio Central Silk Board Subsidizing of Petroleum Products Central Board of Excise and Customs Kisan Credit Card Scheme

40

13

35

14 15 16 17

09 08 11 10

(Background material was not received on 2 subjects) (c) Visits for on-the-spot Study 2.7 (i) Study visit to Bhubaneswar, Kolkata & Gangtok from 25 th to 29th July, 2011. (ii) Study visit to Tirupati, Bengaluru and Hyderabad from 18th to 21st January, 2012.

43

Details of the study visits are given in Appendix X. (d) Proceedings 2.8 A verbatim record of proceedings of the sittings of Committee on Estimates at

which witnesses were examined was maintained in the Secretariat. The minutes of sittings of the Committee relevant to the Reports were prepared and presented to the House alongwith the reports. During the year 2011-12, the Committee on Estimates had six briefing meetings and seven oral evidence of representatives of various Ministries/Departments. IV. Reports Finalised and Presented
(e) Original Reports

2.9

During 2011-12, the Committee on Estimates presented the following original

Reports to the House:Sl. Report No. No. 1. 11 Subject National Highways Development Project Including Implementation of Golden Quadrilateral. [Ministry of Road Transport and Highways] Power Generation - Demand and Supply [Ministry of Power] Development and Regulation of Civil Aviation [Ministry of Civil Aviation] Role and Functioning of Telecom Service Providers in Mobile Telephony [Ministry of Communication and Information Technology] Date of Presentation 09.08.2011

2. 3. 4.

13 14 15

28.12.2011 26.04.2012 26.04.2012

(f) Action Taken Reports 2.10 The following Action Taken Report were presented to the House during 2011-

12 under review:Sl. Report No. No. 1. 12 Subject Action taken by Government on the recommendations contained in the Seventh Report of Estimates Committee (Fifteenth Lok Sabha) pertaining to the Ministry of Youth Affairs & Sports on the subject Sports Policy, Infrastructure and Training Facilities Date of Presentation 22.12.2011

44

2.

16

Action taken by Government on the recommendations contained in the Eleventh Report of Estimates Committee (Fifteenth Lok Sabha) on National Highways Development Project Including Implementation of Golden Quadrilateral pertaining to the Ministry of Road Transport & Highways. Action taken by Government on the recommendations contained in the Ninth Report of Estimates Committee (Fifteenth Lok Sabha) on Indian Ports Infrastructure Development & Capacity Enhancement pertaining to the Ministry of Shipping.

26.04.2012

3.

17

26.04.2012

(g) Action Taken Statements 2.11 Sl. No. 1. Following Action Taken Statements were laid in the House during 2011-12: ATR No. 10 Subject Drought Management, Foodgrain Production and Price situation pertaining to the Ministry of Agriculture Drought Management, Foodgrain Production and Price Situation pertaining to the Ministry of Consumer Affairs, Food & Public Distribution. Date of Presentation 17.08.2011

2.

13.12.2011

V. 2.12

Secretariat The Estimates Committee Branch constitutes the Secretariat of the

Committee. A Director, an Additional Director and a Deputy Secretary remained incharge of the Branch with Additional Secretary as overall in-charge. 2.13 During the 2011-12, material received from the

Ministries/Departments/various organisations and individuals were studied, points culled out and questions prepared for the use of the Committee. 2.14 The work relating to drafting of reports, consideration and adoption,

presentation, printing, distribution and circulation alongwith preparation and presentation of Minutes relating to Reports was attended to by the Secretariat. Scrutiny of Action Taken Replies received from the Ministries/Departments on the recommendations contained in the earlier reports and preparation of action taken

45

reports thereon was also done. The Secretariat further dealt with the work relating to preparation of Memoranda on selections of subjects for consideration of Committee on Estimates and settlement of tour bills received from host organisations of previous study tours. 2.15 The Secretariat also studied, published material like Annual Reports,

Parliamentary Debates, replies to Parliamentary Questions, Budget Estimates, Five Year Plan Documents, Economic Survey documents, Books, Journals, Newspapers, etc. relevant to the subjects under examination.

46

Appendix VII
(See para 2.2) COMPOSITION OF THE COMMITTEE ON ESTIMATES (2011-2012) Shri Francisco Sardinha Chairman Members 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Shri Raj Babbar Smt. Harsimrat Kaur Badal Shri E. T. Mohammed Basheer Smt. Bijoya Chakravarty Shri Bhakta Charan Das Shri Dhruvanarayana Shri T. K. S. Elangovan Shri Ninong Ering Shri Prahlad Venkatesh Joshi Shri P. Karunakaran Shri Bapi Raju Kanumuru Shri Chandrakant Khaire Shri M. Krishnaswamy Shri Datta Meghe Shri Prabodh Panda Shri Jagdish Singh Rana Shri Magunta Sreenivasulu Reddy Smt. Yashodhara Raje Scindia Shri S. Semmalai Shri Arjun Charan Sethi Shri M. I. Shanavas Shri Brijbhushan Sharan Singh Shri Ganesh Singh Shri Ijyaraj Singh Shri Jagadanand Singh Shri Radha Mohan Singh Shri Sushil Kumar Singh Smt. Annu Tandon Shri Hukamdeo Narayan Yadav

1.

47

Appendix VIII
(See para 2.4) STATEMENT SHOWING THE DETAILS AND DURATION OF SITTINGS OF COMMITTEE ON ESTIMATES (2011-12) ATTENDANCE OF MEMBERS AND SUBJECT(S) DISCUSSED Sl. No. 1 Date of Sitting 31/05/2011 From (Hrs: Mins) 11:00 To (Hrs: Mins) 12:45 Duration No. of (Hrs: Members Mins) attended 01:45 23 Subject discussed

(i) Consideration of Memorandum No.1 regarding Selection of Subjects for examination during the year 2011-12 and (ii) Future programme of the Committee. Briefing by the representatives of Ministry of Railways on the subject - Planning and Implementation of Railway Projects. Briefing by the representatives of Ministry of Health & Family Welfare on the subject National Health Policy with special reference to Women & Child Mortality in India Briefing by the representatives of Ministry of Road Transport & Highways on Status of implementation of National Highways Development Project (NHDP) (i) Consideration and adoption of draft Report on the subject Power Generationdemand and supply and (ii) Briefing by the representatives of Ministry of Tribal Affairs on the subjectTribal Welfare Schemes. Further oral Evidence of the representatives of Ministry of Power and Ministry of Coal on the subject Power Generation Demand & Supply Further oral Evidence of the representatives of Ministry of New and Renewable Energy on the subject Power Generation-Demand and Supply Briefing by the representatives of the Ministry of Communications and Information Technology on the subject Role and functioning of Telecom operators in Mobile telephony. Final oral evidence of the representatives of the Ministry of Civil Aviation on the subject Development & Regulation of Civil Aviation

13/06/2011

11:15

13:50

02:35

22

23/06/2011

11:15

14:00

02:45

21

30/06/2011

14:30

16:45

02:15

19

12/07/2011

14:30

17:25

02:55

19

15/09/2011

11:00

13:00

02:00

18

23/09/2011

11:00

13:10

02:10

24

11/10/2011

14:00

16:15

02:15

14

08/11/2011

15:00

17:25

02:25

20

48

10

18/11/2011

14:30

17:30

03:00

18

Oral Evidence of the representatives of the Ministry of Railways on the subject Planning and implementation of Railway Projects Consideration and adoption of the following draft Reports: 1. Original Report on Power Generation Demand & Supply pertaining to the Ministries of Power; Coal and New & Renewable Energy; and 2. Action Taken Report on the recommendations contained in the Seventh Report of the Committee on Sports - Policy, Infrastructure and Training Facilities pertaining to Ministry of Youth Affairs and Sports (Department of Sports) Oral Evidence of the representatives of the Ministry of Communications & Information Technology on the subject Role and functioning of Telecom operators in mobile telephony. Oral Evidence of the representatives of the Ministry of Tourism on the subject Tourism in India with particular reference to Eco Tourism. Oral Evidence of the Ministry of Communications and Information technology on the subject Role and functioning of Telecom Operators in mobile telephony. Consideration and adoption of the following draft Reports of the Committee on Estimates: 1. Draft Report on the subject Development and Regulation of Civil Aviation pertaining to the Ministry of Civil Aviation. Action Taken Report on the recommendations contained in the 11th Report of the Committee on National Highways Development Project Including Implementation of Golden Quadrilateral. pertaining to the Ministry of Road Transport & Highways.

11

16/12/2011

14:00

15:10

01:10

12

12

05/01/2012

14:30

17:00

02:30

15

13

14/02/2012

11:15

13:30

02:15

14

14

14/02/2012

14:30

16:00

01:30

11

15

10/04/2012

14:00

15:30

01:30

17

2.

16

19/04/2012

11:30

13:45

02:15

12

Consideration and adoption of the following draft Reports of the Committee on Estimates: 1. Draft Original Report on the subject Role and Functioning of Telecom Operators in Mobile Telephony

49

pertaining to the Ministry of Communications and Information Technology (Department of Telecommunications), and 2. Draft Action Taken Report on the recommendations contained in the Ninth Report of the Committee on Indian Ports Infrastructure Development & Capacity Enhancement pertaining to the Ministry of Shipping. 17 30/04/2012 15:00 17:30 02:30 13 Briefing by the representatives of Ministry of Consumer Affairs and Public Distribution on the subject Procurement and Storage of Foodgrains.

50

Appendix IX
(See para 2.5) STATEMENT SHOWING THE NUMBER OF SITTINGS OF THE COMMITTEE ON ESTIMATES (2011-12) ATTENDED BY EACH MEMBER Total Number of Sittings during the period under review 17 Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Name of the Member Shri Franscisco Sardinha (Chairman) Shri Raj Babbar Smt. Harsimrat Kaur Badal Shri E. T. Mohammed Basheer Smt. Bijoya Chakravarty Shri Bhakta Charan Das Shri Dhruvanarayana Shri T. K. S. Elangovan Shri Ninong Ering Shri Prahlad Venkatesh Joshi Shri P. Karunakaran Shri Bapi Raju Kanumuru Shri Chandrakant Khaire Shri M. Krishnaswamy Shri Datta Meghe Shri Prabodh Panda Shri Jagdish Singh Rana Shri Magunta Sreenivasulu Reddy Smt. Yashodhara Raje Scindia Shri S. Semmalai Shri Arjun Charan Sethi Shri M. I. Shanavas Shri Brijbhushan Sharan Singh Shri Ganesh Singh Shri Ijyaraj Singh Shri Jagada Nand Singh Shri Radha Mohan Singh Shri Sushil Kumar Singh Smt. Annu Tandon Shri Hukamdeo Narayan Yadav Total Number of Sittings attended 17 04 05 11 04 08 12 09 13 07 06 12 13 14 06 13 05 06 05 16 08 08 11 10 10 15 11 14 09 11

51

Appendix X
(See para 2.7) THE STUDY VISITS OF THE COMMITTEE ON ESTIMATES (2011-12) AND PLACES VISITED BY THEM I. Sl. No 1. 1. Study visit to Bhubaneswar, Kolkata & Gangtok from 25th to 29th July, 2011. Places/Institutions visited / Date of Discussion held with Visit 2. 3. Held discussion with the representatives 25.07.2011 of Ministry of Tribal Affairs and State Government of Odisha on the subject Tribal Welfare Schemes. Held discussion with the representatives 25.07.2011 of the Ministry of Shipping and Paradip Port Trust on the subject Indian Ports Infrastructure Development & Capacity Enhancement with special reference to Paradip Port. Held discussion with representatives of 25.07.2011 the Ministry of Railways (East Coast Railways) on the subject Planning and implementation of Railways Projects with Special reference to East Coast Railway Projects. Held discussion with the representatives 25.07.2011 of Ministry of Road Transport & Highways, NHAI and State Government of Odisha on the subject National Highways Development Project including implementation of Golden Quadrilateral. Held discussion with the representatives 26.07.2011 of Ministry of Civil Aviation and State Government of West Bengal on the subject Development & Regulation of Civil Aviation with special reference to development of Kolkata Airport as a gateway to North-East. Held discussion with the representatives 26.07.2011 of the Ministry of Shipping and Haldia & Kolkata Port Trusts on the subject Indian Ports Infrastructure Development & Capacity Enhancement with special reference to Haldia & Kolkata Ports. Held discussion with the representatives 28.07.2011 of Ministry of Tourism and State Government of Sikkim on the subject Composition of Members 4. Shri Francisco Sardinha, Chairman, MP Shri Brijbhushan Sharan Singh, MP Shri Hukamdeo Narayan Yadav, MP Shri Datta Meghe, MP Shri Jagadanand Singh, MP 3. Shri Bhakta Charan Das, MP Shri S. Semmalai, MP Shri M. Krishnaswamy, MP Shri Ninong Ering, MP Shri Sushil Kumar Singh, MP Shri M. I. Shanavas, MP Shri E.T. Mohammed Basheer, MP Shri Radha Mohan Singh, MP Shri Chandrakant Khaire, MP

2.

4.

5.

6.

7.

52

Tourism in India with particular reference to Eco Tourism and the effects of Tourism on the fragile ecology of the Himalayan region. 8. Held discussion with the representatives 28.07.2011 of Ministry of New & Renewable Energy and State Government on the subject Power Generation Demand & Supply with special reference to Micro HydroPower Projects in Sikkim. Held discussion with the representatives 28.07.2011 of Ministry of Civil Aviation on the subject Development & Regulation of Civil Aviation with special reference to development of Greenfield Airports in the North-East including Gangtok Held discussion with the representatives 29.07.2011 of Ministry of Consumer Affairs, Food and Public Distribution and Food Corporation of India (Regional office, Kolkata) on the subject Procurement and Storage of Foodgrains.

9.

10.

II. Study visit to Tirupati, Bengaluru & Hyderabad from 18th to 21st January, 2012 Sl. No 1. 1. Places/Institutions visited / Discussion held with 2. Date of Visit 3. Composition of Members

4. Shri Francisco Sardinha, Chairman, MP Shri Bhakta Charan Das, MP Shri Prahlad Venkatesh Joshi, MP Shri Bapi Raju Kanumuru, MP Shri M. Krishnaswamy, MP Shri Prabodh Panda, MP Shri M. Sreenivasulu Reddy, MP Shri S. Semmalai, MP

Held discussion with the representatives 18.01.2012 of the Ministry of Civil Aviation on the subject Development and Regulation of Civil Aviation Held discussion with the representatives 19.01.2012 of Ministry of Finance on the subject Central Board of Excise and Customs Held discussion with the representatives 19.01.2012 of the Ministry of Textiles on the subject Central Silk Board Held discussion with the representatives 20.01.2012 of Ministry of Mining, New Mangalore Port Trust, Karwar Port, Belekeri Port and representatives of the State Government of Karnataka on the subject Illegal Mining and Export of Minerals and Foodgrains from New Mangalore Port, Karwar Port and Belekeri Port.

2.

3.

4.

53

5.

Held discussion with the representatives 21.01.2012 of Ministry of Tourism and State Government of Andhra Pradesh on the subject Tourism in India with particular reference to Eco-Tourism Held discussion with the representatives 21.01.2012 of Ministry of Railways on the subject Planning and Implementation of Railway Projects Held discussion with representatives of 21.01.2012 Ministry of Shipping, officials of Visakhapatnam Port Trust and Kakinada Seaports Limited on the subject Indian Ports - Infrastructure Development and Capacity enhancement

Shri M. I. Shanavas, MP Shri Jagada Nand Singh, MP Shri Radha Mohan Singh, MP Shri Sushil Kumar Singh, MP

6.

7.

54

CHAPTER III COMMITTEE ON PUBLIC UNDERTAKINGS

I.

Election and Composition The Committee on Public Undertakings for the year 2011-2012 was

constituted on 30 April 2011 for the term beginning on 1 May 2011 and ending on 30 April 2012. 3.2 The Committee consisted of fifteen members of Lok Sabha declared elected

on 24 March 2011. Seven members of Rajya Sabha to be associated with the Committee were declared elected by Rajya Sabha on 25 March 2011. 3.3 The Speaker appointed Shri V. Kishore Chandra Deo, a Member of the

Committee, as Chairman of the Committee (2011-12). Intimation to this effect was notified in Bulletin Part II dated 30 April 2011.

3.4

Consequent upon a vacancy arising in the Committee after appointment of

Shri V. Kishore Chandra Deo as Cabinet Minister on 12 July 2011, Shri Jagdambika Pal was elected to serve as Member of the Committee vide Bulletin Part II dated 10 August 2011 and the Speaker appointed him as Chairman of the Committee w.e.f. 29 September 2011. 3.5 On expiry of their term, three Members of Rajya Sabha viz., Shri Janardan

Dwivedi, Ms. Mabel Rebello and Shri Tapan Kumar Sen ceased to be Members of the Committee. 3.6 The composition of the Committee is given at Appendix XI.

4 Subjects selected for examination 3.7 The Committee selected the following subjects / undertakings for examination

during the year 2011-2012: (A) I. II. III. Subjects for Comprehensive Examination Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited Rail Vikas Nigam Limited Hindustan Petroleum Corporation Limited

55

IV. V. VI. VII. VIII. IX. X. (B) XI.

Rashtriya Chemicals and Fertilizers Limited Bharat Electronics Limited National Hydro-electric Power Corporation Limited Hindustan Aeronautics Limited Food Corporation of India India Infrastructure Finance Company Limited Pawan Hans Helicopters Limited Subjects based on Audit Paras contained in C&AG Reports Audit Para No. 13.5.1 of Audit Report No. 9 of 2009-10 regarding Loss due to purchase of condensate at crude oil price by Oil & Natural Gas Corporation Limited. Chapter V of Audit Report No. 10 of 2010-11: A Performance Audit of Health Insurance services provided by the four PSU General Insurance Companies, i.e. National Insurance Company of India Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd, and United India Insurance Company Ltd. Performance Audit Report on Joint Venture Operations of ONGC Videsh Limited. Para No. 2.3 on Airports Authority of India (AAI) regarding implementation of Operation, Management and Development Agreement entered into by Airports Authority of India with Delhi International Airport (P) Limited. Para No. 2.5 on Airports Authority of India regarding unauthorized withdrawal from the Escrow Account held in fiduciary capacity on behalf of the Government of India by Mumbai International Airport (P) Limited. Para No. 17.2 on Metal Scrap Trading Corporation Limited (MSTC Limited) regarding export of Gold Jewellery. Subjects for Horizontal Study Corporate Governance in select CPSUs. Corporate Social Responsibility in select CPSUs. Public-Private Partnership in select CPSUs. Sick, Loss Making and Closed CPSUs. Review of work done Sittings of the Committee During the period under review, the Committee held 14 sittings lasting for 22

XII.

XIII. XIV.

XV.

XVI.

(C) XVII. XVIII. XIX. XX.

III.
(A) 3.8

hours 45 minutes. 3.9 A statement showing the details of the dates and duration of sittings of the

Committee held during the period under review, the number of members present and subjects discussed is given in Appendix XII. Another statement showing the

56

number of sittings attended by each member of the Committee is given in Appendix XIII. (B) 3.10 Material furnished by Ministries / Undertakings The material furnished by Ministries / Public Undertakings and the Audit

Reports (Commercial) and Memoranda on Important Points furnished by Comptroller & Auditor General of India relevant to the subjects selected for examination ran into 11800 pages. (C) 3.11 Visits for on-the-spot Study The Committee did not undertake any on-the-spot study visit during the

period under review. (D) 3.12 Proceedings Whenever evidence was taken, verbatim record of the proceedings of the

Committee was maintained. IV. 3.13 Reports finalised and presented The Committee finalised and presented the following Reports during the

period under review: -

S. No.

Report No. 12

Subject

Date of Presentation

Action Taken by the Government on the recommendations contained in the ThirtyFifth Report (14th Lok Sabha) on Food Corporation of India based on Audit Para No.7.1.1 of Chapter VII of Report No. CA 11 of 2008. Action Taken by the Government on the recommendations contained in the Fifth Report (15th Lok Sabha) on National Aluminium Company Limited. Action Taken by the Government on the recommendations contained in the First Report (15th Lok Sabha) on Public Private

19.12.2011 (RS) 20.12.2011 (LS)

13

19.12.2011 (RS) 20.12.2011 (LS)

14

27.04.2012 (Both LS and RS)

57

Partnership in implementation of Road Projects by National Highways Authority of India in respect of Delhi-Gurgaon Project. 4 15 Action Taken by the Government on the recommendations contained in the Second Report (15th Lok Sabha) on Sale of Surplus Land and Buildings by National Textiles Corporation Limited. 27.04.2012 (Both LS and RS)

3.14

The following table indicates the analysis of action taken by Government on

the recommendations made by the Committee in the earlier Reports in respect of which Action Taken Reports were presented during the year 2011-2012:Total number of recommendations Total number of Total number Total number of Recommenof RecommenRecommendations that dations which dations in have been the Committee respect of accepted by the do not desire which replies of Government to pursue in the Government view of have not been Governments accepted by the replies Committee 22 13 9 Total number of Recommendations in respect of which final replies of Government are still awaited 3

47 V. 3.15 Secretariat

The Public Undertakings Branch constitutes the Secretariat of the Committee.

It consisted of a Director, an Additional Director and an Under Secretary with a Joint Secretary as overall in-charge of the Branch. Since April 2012, an Additional

Secretary has remained as overall in-charge of the Branch. 3.16 Material received from various Ministries / Undertakings concerned was

studied. Questionnaires for eliciting information on various subjects selected for consideration by the Committee in connection with examination of Ministries and Undertakings concerned were prepared. Besides, the Secretariat received a

number of representations from individuals / organisations regarding problems relating to Public Sector Undertakings. These were scrutinised and appropriate action taken on all of them. The Secretariat also studied published material like Parliamentary Debates, various reports, books, newspapers, etc. which were relevant to the subjects taken up for examination. RTI related matters received from

58

Information Cell/Committee Coordination Branch were also attended to. The Secretariat also dealt with the processing of Tour Bills submitted by the host organizations for reimbursement of expenditure incurred in connection with the earlier study visits. 3.17 The work relating to drafting of reports for consideration and adoption,

presentation, printing, distribution and circulation alongwith preparation of Minutes relating to Reports and other sittings of the Committee was attended to by the Secretariat. The Secretariat also dealt with the work relating to preparation of

Memoranda for consideration by the Committee, scrutiny of action taken replies received from the Ministries/Departments on the observations/recommendations of the Committee contained in their earlier Reports and preparation of Action Taken Reports thereon.

59

APPENDIX XI (Vide Para 3.6) COMPOSITION OF THE COMMITTEE ON PUBLIC UNDERTAKINGS (2011-12)

Chairman
Shri V. Kishore Chandra S. Deo* Shri Jagdambika Pal** Members, Lok Sabha 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Shri Hansraj G. Ahir Shri Vijay Bahuguna Shri Ramesh Bais Shri Ambika Banerjee Shri Shailendra Kumar Smt Ingrid Mcleod Shri Vilas Baburao Muttemwar Shri Baijayant Panda Jay Shri Adhalrao Shivajirao Patil Shri Ponnam Prabhakar Shri Nama Nageswara Rao Shri Uday Singh Dr. Prabha Kishor Taviad Shri Bhisma Shankar alias Kushal Tiwari

Members, Rajya Sabha 16. 17. 18. 19. 20. 21. 22. * ** @ # Shri Janardan Dwivedi @ Shri Pyarimohan Mohapatra Shri Mukhtar Abbas Naqvi Dr. Bharatkumar Raut Ms. Mabel Rebello # Shri Tapan Kumar Sen # Shri N.K. Singh

Ceased to be Member of the Committee on appointment as Cabinet Minister on 12 July 2011. Appointed as Chairman w.e.f. 29 September 2011 vice Shri V. Kishore Chandra Deo appointed as Minister. Ceased to be a Member of the Committee consequent upon his retirement from Rajya Sabha w.e.f. 27 January 2012. Ceased to be a Member of the Committee consequent upon her/his retirement from Rajya Sabha w.e.f. 2 April 2012.

60

APPENDIX XII (VIDE PARA 3.9) STATEMENT SHOWING DETAILS OF DATES AND DURATION OF SITTINGS OF COMMITTEE ON PUBLIC UNDERTAKINGS ATTENDANCE OF MEMBERS AND SUBJECTS DISCUSSED 2011 - 12 TOTAL SITTINGS = 14
S. No. 1. Date of Sitting 25.05.2011 Venue 53, PH From (Hrs.) 1130 To (Hrs.) 1250 No. of Members Subject(s) discussed present 1 h 20m 15 Consideration of Memorandum No. 1 regarding selection of subjects for examination during the year 2011-12. 2 h 15m 13 Briefing by Secretary and CEO, Institute of Company Secretaries of India and Secretary, Institute of Chartered Accountants of India in connection with the horizontal study on Corporate Governance in select CPSUs. Evidence of Ministry of Civil Aviation on delay in furnishing complete action taken replies on the recommendations / observations of the Committee contained in their Fourth Report (15th Lok Sabha) on National Aviation Company of India Limited (now Air India Limited). Briefing by the representatives of Central Vigilance Commission in connection with the horizontal study being undertaken by the Committee on Corporate Governance in Select CPSUs. To discuss the future programme of the Committee. Further evidence of the representatives of the Ministry of Civil Aviation and CMD, Air India Limited to seek clarifications and elucidations on updated Action Taken Total Time

2.

06.06.2011

53, PH

1100

1315

3.

22.06.2011

53, PH

1100

1215

1 h 15m

11

4.

30.06.2011

62, PH

1100

1230

1 h 30m

13

5.

10.10.2011

E, PHA

1500

1600

1h

17

6.

20.10.2011

B, PHA

1530

1730

2h

11

61

Replies furnished by the Ministry in August 2011 showing implementation of recommendations/observation s of the Committee contained in their Fourth Report (15th Lok Sabha) on National Aviation Company of India Limited (now Air India Limited). 7. 21.10.2011 B, PHA 1130 1200 30 m 12 Consideration of Memorandum No. 4 regarding selection of additional subjects from the C&AG Audit Reports which had been laid in Parliament subsequent to the last selection of subjects made by the Committee in May, 2011 and consideration of two draft action taken reports on FCI and NALCO. Oral evidence of the representatives of Ministry of Consumer Affairs, Food and Public Distribution in connection with comprehensive examination of Food Corporation of India. Oral evidence of the representatives of Pawan Hans Helicopters Limited in connection with its comprehensive examination. Evidence of the representatives of the Ministry of Civil Aviation and CMD, Air India Limited on the implementation of the observations / recommendations contained in the Fourth Report (15th Lok Sabha) on National Aviation Company of India Limited (now Air India Limited) and other issues related therewith including observations contained in C&AG Report No. 18 of 2011-12 on Performance Audit of Civil Aviation in India. Oral evidence of the representatives of the Ministry of Consumer Affairs, Food and

8.

03.11.2011

B, PHA

1130

1200

30 m

15

9.

03.11.2011

B, PHA

1430

1630

2h

11

10.

12.01.2012

C, PHA

1100

1340

2h 40 m

07

11.

29.02.2012

E, PHA

1100

1345

2h 45 m

14

62

Public Distribution (Department of Food and Public Distribution) in connection with the comprehensive examination of Food Corporation of India. 12. 4.4.2012 E, PHA 1130 1345 2h 15m 11 Consideration and adoption of two action taken reports on NHAI and NTC Limited and oral evidence of the representatives of Ministry of Civil Aviation in connection with comprehensive examination of PHHL. Oral evidence of the representatives of Ministry of Steel and MSTC Limited in connection with examination of Audit Para No. 17.2 of C&AG Report No. 3 of 2011-12 (Commercial) regarding Export of Gold Jewellery by MSTC Limited. Oral evidence of Director, CBI in connection with examination of Audit Para No. 17.2 of C&AG Report No. 3 of 201112 (Commercial) regarding Export of Gold Jewellery by MSTC Limited.

13.

19.4.2012

74, PLB

1130

1300

1h 30m

10

14.

26.4.2012

D, PHA

1500

1615

1h 15m

11

63

APPENDIX-XIII (Vide Para 3.9) STATEMENT SHOWING TOTAL NUMBER OF SITTINGS HELD BY THE COMMITTEE ON PUBLIC UNDERTAKINGS (2011-12) FROM COMMENCEMENT OF ITS TERM UPTO 30 APRIL, 2012 AND NUMBER OF SITTINGS ATTENDED BY EACH MEMBER OF THE COMMITTEE. Total number of sittings held SI No. : 14 No. of sittings attended 04 09 08 03 03 09 13 02 11 03 03 10 08 09 09 05 10 10 05 12 08 10 08

Name of Member MEMBERS, LOK SABHA Shri V. Kishore Chandra S. Deo, Chairman Shri Jagdambika Pal, Chairman Shri Hansraj G. Ahir Shri Vijay Bahuguna Shri Ramesh Bais Shri Ambica Banerjee Shri Shailendra Kumar Smt Ingrid Mcleod Shri Vilas Baburao Muttemwar Shri Baijayant Panda Jay Shri Adhalrao Shivajirao Patil Shri Ponnam Prabhakar Shri Nama Nageswara Rao Shri Uday Singh Dr. Prabha Kishor Taviad Shri Bhisma Shankar alias Kushal Tiwari MEMBERS, RAJYA SABHA Shri Janardan Dwivedi Shri Pyarimohan Mohapatra Shri Mukhtar Abbas Naqvi Dr. Bharatkumar Raut Ms. Mabel Rebello Shri Tapan Kumar Sen Shri N.K. Singh

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.