CAG report: Projects initiated under Sagarmala in A.P. not completed due to missing matching grants from State

The Comptroller and Auditor General (CAG) has found that several proposed tourism infrastructure projects in Andhra Pradesh under the Sagarmala Programme could not materialise as the earlier and the successive State governments did not release its matching share of funds, resulting in stalled works and unutilised Central assistance.

The Government of India, in August 2016, introduced financial support covering 50% of project costs — up to ₹10 crore — for constructing each jetty and related infrastructure to promote passenger and cargo movement.

In response, the then State government proposed nine jetty projects and submitted a detailed project report (DPR) in December 2016, committing to bear its 50% share amounting to ₹245.76 crore out of the total ₹491.52 crore.

However, progress remained limited. Only one project — the construction of a jetty at Bhavani Island — received approval, with the Centre sanctioning ₹10 crore and releasing ₹5 crore as the first instalment in June 2017. The Andhra Pradesh Tourism Development Corporation (APTDC) subsequently revised the project scope and awarded the work in November 2017.

The project, however, was halted in December 2019 after executing works worth ₹4.79 crore. The CAG noted that despite repeated requests, the then State government did not release its share of ₹5 crore as of March 2023, preventing APTDC from accessing the remaining Central funds.

Consequently, the expenditure incurred remained unfruitful, while a balance amount also remained idle for several years. The audit further revealed that of the remaining eight projects, revised DPRs were submitted for only three projects.

Although the Centre approved these and sanctioned ₹10 crore each, funds were not released due to missing of State’s constribution. No decisions were taken on the remaining five proposals, effectively derailing tourism development plans across multiple locations.

The State government attributed the delays to revised cost estimates ranging between ₹70 crore and ₹75 crore per project, citing financial constraints. However, the CAG rejected this explanation, stating that approvals were based on original estimates and that timely release of State funds could have ensured project completion.