CAG Report Exposes Massive Misuse of Madhya Pradesh IT Parks: Nursing Colleges and Warehouses Replace Tech Firms

Madhya Pradesh government completed IT park plot allocations in merely 21 hours.

Bhopal:

What was designed to propel Madhya Pradesh into the digital economy era has instead become a center for nursing colleges, drug storage facilities, supply services, and general engineering operations.

A recent audit by the Comptroller and Auditor General of India (CAG) has uncovered widespread misuse of land parcels specifically designated for Information Technology (IT) companies across major IT parks in Bhopal, Indore, Jabalpur, and Gwalior. This reveals significant oversight failures within state corporations.

The audit findings demonstrate extensive misappropriation. In Jabalpur IT Park, a nursing institution operates where a call center was originally intended. Another recipient, supposedly manufacturing LED products, was merely storing bulb components. A pharmaceutical warehouse functions in a space meant for software services. General engineering activities have infiltrated what was intended to be the state's technology corridor. Though none of these activities qualify as "Information Technology," the audit noted they received approval without challenges.

Under the MPSIDC (Social Sector Use) initiative, 72 plots were made available, but only 32 applicants entered the lottery, with just 11 proving profitable. According to the CAG, the entire process suffered from inadequate planning, supervision, and industry-specific strategy.

In a demonstration of urgency, the Madhya Pradesh State Electronics Development Corporation (MPSEDC) allocated IT park plots within just 21 hours. Rather than technology companies, these allocations benefited nursing colleges and unrelated industries, violating all scheme regulations.

The CAG additionally highlighted irregularities in solar manufacturing projects. A Jabalpur company, granted land for PV solar panel production, submitted equipment lists including soldering irons, drills, cutters, and weighing machines—items entirely unrelated to solar module manufacturing.

Despite this clear discrepancy, the company received a Rs 60.73 lakh subsidy. Moreover, its land allocation, previously canceled due to failure to commence operations, was subsequently reinstated.

Employment Crisis: Only 96 Jobs Created Instead Of 6,536

Employment statistics reveal the scheme's fundamental failure. By 2023, allocated firms were expected to generate 6,536 positions. However, inspections revealed only 96 people employed, representing merely 1.5% of the target. Across all four IT parks, the state's total IT employment reached only 576, against an initial projection of 15,000 jobs.

Compounding the losses, five companies that received land valued at Rs 9.81 crore never initiated operations.

The audit disclosed that 13.57 acres of IT park land in Bhopal and Indore had been encroached upon, causing a Rs 2.28 crore revenue loss and Rs 3.62 crore development loss. The corporation failed to respond when the CAG requested information regarding anti-encroachment measures.

Between 2013 and 2023, the MPSEDC neglected to update development fees. The outdated fee collection totaled Rs 42.86 crore, while actual development expenses reached Rs 228.10 crore, highlighting significant financial mismanagement.

The Madhya Pradesh Small Industries Corporation disbursed Rs 2.79 crore without royalty certificates or proper verification, violating procurement protocols.

The New and Renewable Energy Development Corporation failed to recover Rs 25.12 crore in land use charges and did not impose Rs 8.6 crore in delayed interest penalties. The department also disregarded Rs 2.65 crore in outstanding interest obligations, issuing no follow-up communications or payment demands.

Finally, maintenance contracts were awarded to a contractor who falsely claimed having no pending litigation. The CAG discovered three ongoing court cases against this individual. Nevertheless, he received contracts worth crores in 2017.