CAG Report Unveils Major Financial Mismanagement in Odisha's Tourism Sector
Significant Financial Lapses in Odisha's Coastal Tourism
ARINDAM GANGULY, OP
Bhubaneswar: The Comptroller and Auditor General (CAG) of India has identified serious financial and operational shortcomings in the tourism development efforts along Odisha's coastline. The report highlights a staggering loss of Rs 207.68 crore incurred by the Tourism department due to the organization of seven eco-retreats from 2019 to 2024. It was revealed that Rs 898.48 crore allocated for various tourism initiatives remained idle in the bank accounts of nine executing agencies, primarily due to delays in obtaining necessary clearances, administrative approvals, and land availability.
According to the audit, a significant portion of this amount, Rs 806.44 crore, which constitutes 89.76%, was stagnant in the accounts of the Odisha Tourism Development Corporation (OTDC) and the Shamuka Tourism Development Corporation (STDC) for five years. The report evaluated the department's initiatives aimed at fostering sustainable tourism within the Blue Economy framework in coastal regions. Additionally, it was noted that the department surrendered Rs 103.35 crore from a total budget of Rs 2,278.04 crore due to unutilized funds.
Outstanding Financial Obligations
The CAG report pointed out that OTDC has not managed to recover dues totaling Rs 10.72 crore from government entities and Rs 72 lakh from private parties for services rendered, including transport and accommodation. Furthermore, the department and OTDC have not activated beach shacks, which undermines the goal of enhancing beach tourism. This oversight has led to a blockage of Rs 1.25 crore and a potential revenue loss estimated at Rs 45.50 lakh annually.
Infrastructure Projects Stalled
The audit also underscored the delays and incomplete status of various infrastructure projects despite significant financial outlays. Under the centrally sponsored Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme, projects aimed at enhancing infrastructure in Puri, Shree Jagannath Dham, Ramchandi, the Prachi River at Deuli, and Dhauli remain unfinished, despite an expenditure of Rs 6.49 crore.
Similarly, initiatives under the Swadesh Darshan scheme at Barakul, Satapada, Tampara, and Gopalpur have either not been completed or have failed to meet their intended goals, with a total expenditure of Rs 41.60 crore. The aim to develop Bindusagar Lake as a tourist destination has not been realized even after nine years and an investment of Rs 8.16 crore. The development of the Shamuka special tourism area in Puri district is also incomplete, resulting in an unproductive expenditure of Rs 11.92 crore. Additionally, the goal of establishing three Blue Flag beaches at Niladri, Muhan, and Pir Jahania in Puri has not been achieved, despite spending Rs 3.78 crore from 2020 to 2025.
Violations of Forest Regulations
The CAG has raised concerns regarding the construction of permanent or semi-permanent structures within sanctuary, national park, and proposed reserve forest areas, which contravenes government guidelines and the Forest (Conservation) Act of 1980. Projects such as a beachfront promenade at Ramchandi, the widening of the approach road along the Puri-Konark Marine Drive, and a Panthasala at Talasari incurred costs totaling Rs 28.84 crore.
Safety Concerns for Tourists
The audit also highlighted that 20 Panthanivas are operating without the required fire safety certificates, raising alarms about tourist safety. The report emphasized that hotel owners and operators must implement prescribed fire prevention and safety measures to safeguard lives and property.
Moreover, the CAG noted that tourist arrivals in Odisha are heavily concentrated in a few coastal districts, with Puri and Khordha accounting for 48% of the state's tourist traffic between 2019 and 2024. The allure of the Shree Jagannath Temple, the annual Rath Yatra, and the beaches of Puri have significantly contributed to this concentration.