PAC pulls up SPV panel over funds use

SHILLONG: The public accounts committee (PAC) of the Meghalaya Legislative Assembly has questioned the special purpose vehicle (SPV) committee on Lafarge Umiam Mining Private Limited (LUMPL) for not spending more than Rs 200 crore for the development of 53 villages under Shella and Mawsynram constituencies.

The PAC on Monday summoned the Meghalaya chief secretary and other officials over the matter and sought clarification.

Talking to media persons, PAC chairman, Charles Pyngope rued that the funds were lying idle and were mandated for implementing various welfare projects as per the direction of the Supreme Court in the areas within 50 sq km where Lafarge is extracting limestones exported to Bangladesh.

According to Pyngrope, LUMPF has increased the capacity of extracting limestones to 5 million tonnes.

“With royalty of Rs   90 per metric tonnes, Lafarge will release Rs 45 crore every year to the SPV,” he said.

The SPV committee was constituted after Lafarge was penalised by the apex court for violating the norms relating to the Union ministry of forest and environment.

As per the directive of the apex court, Lafarge was asked to pay a penalty of Rs 90 per tonne of limestone extracted and exported to Bangladesh and the amount was supposed to be utilised for welfare projects mandated by the Supreme Court.

The projects include development of health, education, economy, irrigation and agriculture for the welfare of the local community and tribes.

According to the PAC, the amount received by the SPV committee, right from 2010-2011 till 2018-2019, is about Rs167 crore and the committee had also earned a huge interest of Rs 34 crore since the funds were parked in various financial institutions.

On the other hand, PAC member, Himalaya Muktan Shangpliang said there was concern over the delay in the implementation of the projects which were conceptualised since 2015-2016.

He said there were individual projects under the SPV such as plantation of areca nut, betel leaves, poultry and piggery, which have been taken up. But the second installment of the funds for these projects was yet to be released despite the fact that the first installment was released three years back.

“We fear that if there is a delay in releasing the second installment, then it will lead to disappearance of the projects,” Shangpliang added.

Referring to certain road projects earmarked by the SPV, he said the road connecting Synnei village amounting to Rs 5.5 crore and another road project from Tynger to Dewsaw amounting to Rs 13.5 crore, were missing from the list.

He also informed that the water supply schemes under the SPV for Mawdon, Lawbah and Mawkhan villages were also missing from the list.

Shangpliang further said the committee has again asked the government to  place the projects  and chief secretary, Y Tsering  has assured that he would convene a meeting of the SPV committee to consider the projects which were missing from the list.