March 9: The state government had rolled out the red carpet for investors during the recent Invest Karnataka Meet 2016 but this has not deterred 35 private tourism projects with investments of Rs. 21,673 crore from backing out from Karnataka.
The Comptroller and Auditor General of India (CAG), in the economic and revenue sector audit, disclosed that the tourism policy has failed to attract good investments to the state.
The report stated that during 2014-15, private sector investment of `27,550 crore spread over 512 projects was approved with an employment potential for 41 lakh youth. However private sector entrepreneurs have backed out from Karnataka, the reports says.
Projects assisted by the Government of India were not completed within the stipulated time resulting in loss of central assistance of Rs 17.95 crore in seven cases. A mega project in Hampi taken up in 2008, is still in progress.
A Theme Park estimated at Rs 50 crore which resulted in wasteful expenditure of Rs. 1.41 crore and 77 Yatrinivas and dormitories constructed for benefit of tourists at a cost of Rs 51.63 were not put to use, the report pointed out
Karnataka Industrial Area Development Board has paid compensation of Rs. 1.84 crore for acquiring land for Harohalli Industrial area, but the same land has already been acquired for construction of a minor irrigation tank at Bannikuppe village, due to this mistake double payment of compensation made.
The PWD department is guilty of incurring wasteful expenditure of Rs 7.71 crore by constructing residential quarters in a civic amity site at HSR Layout, Bengaluru. This is a clear violation of Karnataka Parks, Playfields and open Space Act, 1985, the CAG report stated.