Audit Reports
Karnataka
Report of 2011 - Performance Audit on Acquisition and allotment of land by Karnataka Industrial Area Development Board of Government of Karnataka
Overview
The Karnataka Industrial Areas Development Board was established under the Karnataka Industrial Areas Development Act, 1966 to promote and assist in the rapid and orderly establishment, growth and development of industries in the State. The Board acquires land, both Government and private, develops industrial areas and makes these available for undertakings to establish themselves. The Board also functions as an agency for acquisition of lands for Single Unit Complexes and Special Economic Zones.
A performance audit of acquisition and allotment of land by the Board was taken up between April to July 2011 and October 2011 and entry and exit conferences were held with the Principal Secretary, Commerce and Industries. The responses of various officers of the Board to the audit observations have been taken into consideration and incorporated in his report. While the main findings are summarised in the following paragraphs, the details are available in the specific chapters.
Establishment of industrial areas by the Board was not consistent with the Industrial Policy 2006-11 and 2009-14 of Government. Selection of areas for setting up industrial areas was ad hoc and showed lack of due diligence. This led to regional imbalances in setting up industrial areas.