CAG finds fault with working of TS-iPASS

‘Objective of single point approval from all the depts., unachieved’

The Comptroller and Auditor General of India has said that the much-acclaimed TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) did not have controls to ensure that prospective entrepreneurs applied for all the required approvals.

The CAG, in its report, highlighted the shortcomings in the TS-iPASS Act which was enacted with an objective to provide single point approval on behalf of all the relevant departments for setting up industrial undertakings. The software also did not provide an option to “apply later”. As a result, only 9% of entrepreneurs applied for all the approvals while 91% entrepreneurs applied for selected approvals.

Of the total approvals, 1,941 applications received during 2016-17, only 177 (9%) applied for all approvals while 1,764 (91%) applied for partial approvals. For instance, only 85 of the 148 units (constituting 57%) applied for approvals under Pollution Control Board (red category) while 63 units (43%) did not apply.

No mechanism

The same was the case with the units under the Pollution Control Board (orange category) where only 175 out of the 441 units sought approvals. Only 9 of the 106 units sought approvals from the Fire Department and 147 of the 1,425 sought no-objection certificate from the gram panchayats concerned.

TS-iPASS was issuing approval certificate only for those approvals which were sought by the entrepreneurs. Approvals, which were required but not applied for were not insisted before issue of consolidated approval certificate. “This rendered the objective of single point TS-iPASS approval from all the departments, unachieved,” the CAG said. The report said that there was no mechanism to ensure whether the 1,764 units, which applied for partial approvals, had thereafter established units and commenced operations. “There is a risk of such units starting operations even without all necessary approvals,” the CAG said.

The CAG report said the government accepted in December last that approval was being issued only to the extent for which approvals were sought for, instead of all the approvals required. Government replied that the units were free to apply for only some of the approvals and informed that system code was being updated to generate TS-iPASS consolidated certificate only after receipt of all the required approvals.

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Printable version | Apr 7, 2020 12:18:30 AM | https://www.thehindu.com/news/cities/Hyderabad/cag-finds-fault-with-working-of-ts-ipass/article23437610.ece

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