A slaughterhouse facility constructed at a cost of 17.15 crore is lying idle for the past four years, due to the Nagaland Government’s failure to execute fresh MoU for establishment of Modern Abattoir even after a lapse of more than one year from the date of cancellation of MoU, informed the Comptroller and Auditor General of India (CAG) in its Social, Economic, General and Revenue Sector for the year ended 31 March 2022 report.
To set up a Modern Abattoir/Slaughter House at Kohima, the Government of Nagaland (GON) submitted (October 2013) a Detailed Project Report (DPR) to the Ministry of Food Processing Industries (MFPI), Gol for 21.99 crore to be implemented under Public Private Partnership mode.
Accordingly, MFPI approved (February 2016) the project for 21.99 crore (Central share: 15 crore and State share: 26.99 crore) which was scheduled to be completed within 24 months from the date of sanction of the project (February 2018).
The CAG highlighted that a Memorandum of Understanding (MoU) was signed between Kohima Municipal Council (KMC) under Municipal Affairs Department (MAD), GoN and the Contractor, M/s CESCO, for establishment and operation of a Modern Abattoir at Kohima. As per the MoU, Gol would fund 75 per cent of the project cost and the Contractor would contribute the State Government share of 25 per cent of the fund and in lieu, the Contractor would operate and maintain the Modern Abattoir for 30 years.
Further, scrutiny of records revealed that the MFPI released 14.50 crore out of the total Central share of 15 crore to the KMC account in four instalments (between March 2016 and March 2019). Out of the fund released by Gol, KMC paid 14.40 crore to the Contractor for value of works executed and measured and 10 lakh was paid to M/s Max Technology, Project Management Consultant for preparation of DPR. Against the agreed contribution of ₹6.99 crore by the Contractor, only 2.65 crore was deposited into KMC account in three instalments. “Contravening the provisions provided in the MoU, the State Government released 2.65 crore (October 2018) to MAD as State share, out of which 2.57 crore was paid (December 2018) to the Contractor without actual execution of works,” stated the CAG.
When the issue of extending undue financial benefit was pointed out by Audit (August 2021), the Department stated (November 2021) that the MoU was cancelled on 24 August 2021 as the State share was partially provided by the Nagaland Government. The Department further stated that KMC was instructed to frame a fresh set of modalities for the operation and maintenance of the Project and execute a new MOU with the Contractor on revenue sharing basis.
However, according to the CAG, the State Government has not executed the revised MoU after cancellation of the old MoU.
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As per MFPI Annual Report 2018-19, the project was completed, commissioned and put in operation on 23 February 2019. However, contrary to the MFPI Annual Report, the Department stated (December 2022) that commercial production would commence only after execution of fresh MoU. This indicated that the State Government had submitted false completion certificate to the MFPI,” points out the CAG. With drastic lifestyle changes and growing meat consumers, slaughter houses have become a necessity in ensuring hygienically prepared meat.
The project, which aims to provide hygienically prepared meat through humane handling of animals using hygienic techniques and application of modern technology for slaughter waste management and pollution control, thus remained unachieved. According to the CAG, laxity on the part of the Department to implement the programme as per the time schedule provided in the sanction order led to the facility lying idle for the last four years and loss of potential revenue from its operation.
The CAG has further recommended the State Government to take necessary steps to execute a fresh Memorandum of Agreement so that the objective of the project is fulfilled without further delay.
