Report No 20 of 2006

Draft Report on the Performance

Audit on Tsunami Relief,
Rehabilitation and Reconstruction
relating to the Union Territory of
Andaman and Nicobar Islands

Highlights
The Andaman and Nicobar Administration (Administration) did not play a proactive role in
increasing the disaster preparedness and disaster mitigation management either in the preTsunami or in the post-Tsunami period.

(Para 3.1.1)

The policy objectives are yet to be suitably amended for better disaster risk assessment,
mitigation, prevention and preparedness in case of a future Tsunami.

(Para 3.1.1)

Due to non-completion of Coastal Area Mapping, demarcating the No Construction Zone and
High Tide Lines, the Administration is unable to identify the violators of Coastal Regulation
Zone.

(Para 3.1.1)

Requirement of funds projected by the Administration for Tsunami relief, rehabilitation and
reconstruction works was unrealistic and highly inflated.

(Para 3.2.1)

Absence of Central Accounting System and poor management of funds resulted in poor utilisation
of funds leading to surrender of funds.

(Para 3.2.2)

Pace of relief, rehabilitation and reconstruction works in Andaman and Nicobar Islands (ANI)
remained slow due to poor utilisation and improper allotment of funds (Para 3.2.2)
Departmental advances of Rs 54.10 crore drawn from MH 2245 remained unadjusted for periods
ranging upto 14 months in violation of General financial Rules.

(Para 3.2.2)

Relief funds amounting Rs 51.35 lakh were misutilised for payment of working lunches, purchase
of SIM cards, recharge cards, mobile phones, revenue stamps, TA, stationery charges etc.
(Para 3.2.2)
Rs 820.00 lakh and Rs 4.78 lakh were diverted from MH 5051 and MH 2202 for relief and
rehabilitation works.

(Para 3.2.2)

Rs 15.00 lakh under the Plan budget of MH 2245, meant for enhancing preparedness in managing
disasters, was drawn as departmental advance and irregularly diverted for other purposes.
(Para 3.2.2)
In 15 cases, funds from MH 2245 and LGs Relief Fund amounting to Rs 18.60 crore were kept
in bank accounts for phased out payment. The bank accounts were opened and operated without
prior

permission

of

the

Ministry/

CGA

in

violation

of

the

codal

provisions.

(Para 3.2.2)
Vouchers/ Details for amount of Rs 45.70 crore spent by the Ministry of Home Affairs (MHA)
out of funds allotted to ANI for purchase of relief/ rehabilitation material were not available.
Similarly, details/ vouchers of purchases made by the Deputy Resident Commissioners at

Chennai and Kolkata as well as by the Deputy Director Shipping Services, Chennai were also not
available with the Administration.

(Para 3.2.2)

The Integrated Relief Command for monitoring relief works in ANI was constituted only after a
lapse of six days from the Tsunami disaster.

(Para 3.3.1)

Relief materials worth Rs 29.55 crore were purchased without observance of any codal
formalities. However, total expenditure on relief materials is yet to be quantified, as payments in
respect of all the relief materials procured are yet to be made.

(Para 3.3.2)

Bills of Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO)

amounting to Rs 19.99 lakh for supply of vegetables were paid without adjustment of advance
payment of Rs 50.00 lakh made for the same purpose.

(Para 3.3.2)

Non- observance of codal formalities and injudicious planning coupled with allowance of
incorrect claim in respect of purchase of 7000 bicycles resulted in avoidable extra expenditure of
Rs 18.67 lakh and irregular expenditure of 6.60 lakh.

(Para 3.3.2)

Records of receipt/ distribution of relief materials were not maintained during the period from
27.12.2004 to 05.01.2005. Records maintained from 06.01.2005 onwards showed discrepancies
in the quantities recorded in the Ships manifests, Godowns Registers and that received in
various islands.

(Para 3.3.3)

Relief materials were procured far in excess due to incorrect assessment of requirement resulting
in non-utilisation and deterioration of these materials.

(Para 3.3.3)

Relief materials received in the Godown were accounted for in Bundles, Bags, Cartons etc. due to
which it was not possible to vouchsafe whether all the ordered quantities were actually received.
(Para 3.3.3)
After the closure of the relief camps, the whereabouts of consumer durables worth Rs 21.23 lakh
supplied to camps could not be ascertained in absence of

any record therefor.

(Para 3.3.3)
Huge stocks of materials donated by the NGOs and purchased by the Government were lying in
stock

after the closure of the relief camps, some of which had become unusable.

(Para 3.3.3)
Unrealistic projection of requirement by the Administration resulted in wasteful procurement of
bamboos by the Government of Kerala.

(Para 3.3.3)

Due to issue of tents in unassembled form, 577 tents could not be utilised resulting in an amount
of Rs 1.16 crore remaining unfruitful.

(Para 3.3.3)

Relief funds amounting to Rs 22.37 lakh was misutilised by the Directorate of Education for
procurement of fire fighting equipments.

(Para 3.3.4)

 The Directorate of Education made purchases worth Rs 40.96 lakh without observance of codal
formalities.

(Para 3.3.4)

Bills for purchases worth Rs 22.77 lakh were processed by the Director of Education and cheques
issued by the PAO without actual receipt of the goods.

(Para 3.3.4)

The Electricity Department procured 4 DG Sets costing Rs 97.26 lakh without obtaining the
minimum number of bids as prescribed in the General Financial Rules.

(Para 3.3.4)

519 Gensets procured by the Electricity Department at a cost of Rs 170.24 lakh and distributed to
relief camps and Government Departments were neither taken back nor their cost recovered.
(Para 3.3.4)
The Electricity Department sought for expenditure sanction of Rs 8.86 crore from the Ministry of
Power towards purchase of DG Sets and T&D materials but made part payment of Rs 1.47 crore
without awaiting the sanction of the Ministry.

(Para 3.3.4)

T&D materials were procured by the Electricity Department without proper assessment of the
actual requirement resulting in huge stock lying idle.

(Para 3.3.4)

The O/o the Deputy Commissioner (Andaman), 23 WLL & 2 GSM Mobile phones worth Rs 2.23
lakh without observing any codal formalities and distributed them mainly to ineligible officials.
In addition call charges for the above phones were also being paid, which was irregular.
(Para 3.3.4)
Awarding of the work of reconstruction of ICDS Centres to ANIIDCO instead of
APWD/CPWD/ALHW resulted in avoidable extra burden in the form payment of service fees to
ANIIDCO.

(Para 3.3.5)

The physical and financial achievement in implementation of the assistance package to the
affected fishermen was very poor and the Directorate of Fisheries was unable to utilize the funds
allocated. In addition, the norms prescribed for assistance to fishermen was also not strictly
adhered to.

(Para 3.3.6)

Due to lack of effective coordination between the Administration and the NGOs, relief and
rehabilitation materials were procured far in excess of requirement resulting in huge quantity of
items lying idle even after a lapse of one year.

(Para 3.3.7)

Out of 52 schools decided by the Administration to be reconstructed by the NGOs and other
agencies, only 12 schools have been completed.

(Para 3.3.7)

Inventory Audit Team of the Administration found that there was no reconciliation of records
in

respect

(Para 3.3.8)

of

the

relief

and

rehabilitation

materials received and distributed.

 A Public Interest Litigation was filed due to deficiencies on the part of the Administration to
provide

adequate ex-gratia/ compensation and post-Tsunami Rehabilitation measures.

(Para 3.3.9)
The financial progress of APWD was only 55.45 per cent in 2005-06 till December 2005 and the
physical progress was also lagging behind in the Relief/ Reconstruction

activities.

(Para 3.4.2)
Delay on the issue of construction of Permanent Shelters has made uncertain the shifting of
affected population presently housed in Intermediate Shelters.

(Para 3.4.2)

Post haste decision to procure desalination plants, DG Sets and SMC Panel Tanks before
finalizing their locations and completion of initial base works resulted in non-installation of
desalination plants valued at Rs 35.21 lakh.

(Para 3.4.2)

20 complete and 46 part pre-fabricated structures were lying

unused

at Hut Bay.

(Para 3.4.2)
Equipment such as Bulldozers, tractors etc. were lying idle for long periods. (Para 3.4.2)
A majority of the Bailey bridges have not yet been installed defeating the purpose for which the
bridges were to be erected and installed even after a lapse of one year from the date of their
procurement.

(Para 3.4.2)

Lack of internal control coupled with lack of coordination between the Divisions of APWD
resulted in procurement of materials in excess of requirements.

(Para 3.4.2)

Injudicious procurement of plastic ropes without requirement resulted in an expenditure of Rs

1.60 crore being rendered unfruitful.

(Para 3.4.2)

Due to acceptance of abnormally high rates above the market rate, the APWD incurred an
avoidable

extra

expenditure

of Rs 3.42 lakh in

construction of a Tsunami Memorial.

(Para 3.4.2)
94.32 MT of CGI Sheets fell into the sea while unloading at Kamorta resulting in a loss of Rs
39.37 lakh towards cost of the sheets and its transportation.

(Para 3.4.2)

Due to negligence, a quantity of 55210 metres of cables were not unloaded at Campbell Bay
resulting in avoidable extra liability due to double transportation.

(Para 3.4.2)

The financial and physical progress of ALHW as of December 2005 was very poor resulting in
delay of repair, restoration and reconstruction works.

(Para 3.4.2)

Due to improper planning, an injudicious expenditure of Rs 38.22 lakh was incurred towards
construction of a temporary jetty at Katchal.

(Para 3.4.2)

Pace of payment of ex-gratia was very slow resulting in substantial number of beneficiaries being
deprived of their legitimate compensation.

(Para 3.5.1)

 System of

assessment of damage and identification of beneficiaries was not foolproof.

(Para 3.5.1)
System prescribed under existing Financial Rules for payment through Acquittance Rolls and
payments made to illiterates on the basis of thumb impressions was not followed. As a result,
these payments could not be vouchsafed.

(Para 3.5.1)

Procedure for assessment of crop/ land loss in Tribal areas in absence of revenue records and
identification of next of kin on the Tuhet system basis does not have the approval of the
Government of India.

(Para 3.5.1)

As the Andaman and Nicobar Land Regulation Act specifies that all land vests in Government,
payment of compensation for land loss to individuals was technically incorrect. Moreover, norms
for

compensation

was

not

formulated

for

loss

of

non-

agricultural

land.

(Para 3.5.2)
A draft scheme for Compassionate Appointments to the dependents of the government servants of
Administration who had died/ were missing in Tsunami disaster was sent to the Government of
India for approval. However, appointments under the proposed scheme were being made without
receipt of the approval of the scheme.

(Para 3.5.3)

Instructions received from NDMD and incorporated in the DMP are yet to be approved by the
Government of India.

(Para 3.6)

All the reports on Natural Calamities as prescribed the MHA and MOF were not being furnished
by the Administration after July 2005.

(Para 3.7.1)

No Monitoring Cell has been constituted to monitor the ongoing relief, rehabilitation and
reconstruction activities.

(Para 3.7.2)

 Recommendations
The Disaster Management Regulation and Disaster Management Plan may be suitably
amended with special emphasis on disaster preparedness and disaster management in
case of a Tsunami.
Emergency Operation Centres may be set up at the earliest in both Andaman and
Nicobar District for better pre-disaster assessment, forewarning, dissemination and
mitigation of disasters
All key departments may be imparted orientation training programmes in dissemination
and evacuation techniques. Involvement of common people may also be encouraged
through holding of workshops /seminars/ awareness camps etc to increase public
awareness to disasters.
Construction of sea-walls, coral reefs, plantation of mangroves, as well as identification
and retrofitting of all vulnerable structures may be taken up and completed at the earliest
to reduce the impact of damage in future Tsunami disaster.
Mapping the coastal areas for hazards, vulnerability and risk analysis alongwith
demarcation of High Tide Lines and No Construction Zones may be completed
expeditiously and inhabitants in these zones moved/ resettled in other areas. In case of
shortfall of necessary revenue land for this purpose, proposal for de-reservation of forest
area may be sent to Ministry of Environment and Forests for approval. Further, norms
for civil constructions in coastal areas should be formulated incorporating therein
Tsunami resistant designs and plans. Violators of such norms as well as Coastal Zone
Regulations should be identified and prosecuted.

Cases of resettlement due to the change in geomorphology of the islands should be taken
up and land to the affected families should be provided at higher regions, if necessary by
de-reservation of forestland on one-time basis with the approval of the Ministry of
Environment and Forests.

The actual requirement of fund for relief, rehabilitation and reconstruction may be reassessed by taking into account the survey reports, studies by technically trained people/
agencies and realistic inputs in order to project the actual requirement on a realistic
basis.
A Central Accounting System should be put in place with a mechanism of effective
internal control to monitor the utilisation of the funds so that funds received from all the
sources are properly accounted for and allotment of funds to various departments are
also need-based. Adequate steps should be also taken for a better fund management

Effective measures should be undertaken for proper utilisation of the funds received
from various sources in order to step up the pace of relief, rehabilitation and
reconstruction work as well as to ensure that ex-gratia payments are received by the
beneficiaries at the earliest.

It should be ensured that the funds, which have been allocated for relief, rehabilitation
and reconstruction activities, are not surrendered but are fruitfully utilised in order to
fulfill the purpose of allotment of such funds.
Action may be taken up for release of the balance of the consented amount of Rs 10.40
crore from Member of Parliament Local Area Development Scheme (MPLADS). Action
also needs to be taken to expedite the estimates of the remaining three works and to
obtain the approval of the Government of India for all the projects in order to utilise the
funds received under MPLADS at the earliest for the projects for which such fund was
released.
All departmental advances should be adjusted immediately and it should be ensured that
funds released under MH-2245 are not diverted for other purposes. Similarly, funds from
other heads should also not be diverted for relief purposes without the approval of the
competent authority for such diversion. All the diversions made till date should be
regularised by ex-post facto approval of the competent authority. Further, additional
requirements under any Major Head should be projected and necessary re-allocations
made by the approval of the competent authority.

Drawal of departmental advances for deposit works should be stopped forthwith and
procedure prescribed under Paras 8.5 and 8.22 of Civil Accounts Manual should be
strictly

followed for transfer of funds in connection with deposit works given to

Andaman Public Works Department / Andaman and Lakshadweep Harbour Works etc.
Funds should not be kept in separate bank accounts without prior approval of the
Ministry/Controller General of Accounts. All existing bank accounts should either be
closed immediately or ex-post facto approval of the competent authority sought for
regularisation of the opening and operation of these accounts.

The Director of Accounts & Budget should particularly ensure that proper procedure is
followed in issuance of cheques against bills passed and to effectively monitor the
adjustment of departmental advances drawn.

Incorrect payments made from Prime Ministers Relief Fund should be recovered at the
earliest.

 Money received from relief funds should not be utilised for purposes other than those for
which they are provided.
Details/ Vouchers in respect of expenditure incurred by the Ministry of Home

Affairs, Deputy Resident Commissioner, Chennai, Deputy Director of Shipping

Services, Chennai and Deputy Resident Commissioner, Kolkata out of the funds
under MH-2245 may be obtained and properly accounted for.
The physical and financial progress of the repair, restoration and reconstruction

activities may be paced up. Proper monitoring mechanism with internal control
may be setup to ensure completion of all the civil works as well as to avoid losses/
unnecessary expenditure/ injudicious expenditure due to negligence.
All the civil works which were either completed or taken up without obtaining

sanction of the competent authority may be regularised by obtaining ex-post facto

approvals
The issue of construction of Permanent Shelters may be finalised early in

consultation with the Ministry of Urban Development and the work of Permanent
Shelters taken up an early date so as to shift the affected population presently
housed in the Intermediate shelters.
Effective action may be taken for installation of the desalination plants, bailey

bridges & pre-fabricated structures and for gainful utilization of the bulldozers,
tractors, trailers etc. so as to fulfill the purposes for which the above materials
were procured/ hired.
Physical verification of all the materials procured for rehabilitation and

reconstruction may be conducted so as to reconcile the discrepancies in the

various store records.
The entire quantity of plastic ropes procured may be fruitfully utilised at the

earliest and in future assessment of requirement may be made on realistic basis to

avoid unfruitful/ wasteful expenditure and/ or procurement in excess of actual
requirement.
Procurement of materials may be made as per the prescribed procedures and in

all cases care may be taken to ensure that materials are not procured at rates
higher than the maximum permissible limit.

 Codal formalities should invariably be followed in all cases of future procurement and
stock registers/records in respect of materials should also be maintained. Records in
respect of materials already received should be reconstructed after reconciling the
quantities recorded in the ships manifests, Godowns stock registers, Special Relief
Officers stock records and Sector Officers records. Materials procured by the
Administration and those donated by the NGOs should also be segregated and accounted
for separately.
Either future claims of Andaman and Nicobar Islands Integrated Development
Corporation (ANIIDCO) should be adjusted against the advance payment of Rs 50.00
lakh already paid to them or the same may be recovered at the earliest
Irregular payment of Rs 6.60 lakh made to the supplier of bicycles, M/s Ambika Exports
Pvt. Ltd., Ludhiana, may be recovered as the supplier had committed to assemble the
bicycles at Port Blair at their own cost.
Overpayments made to Consumers Co-operative Society Ltd. should be recovered
without further delay.
Relief funds should not be used for the procurement of items such as mobile phones. Expost facto approval of the Ministry may be obtained for regularisation of the above
procurement. Further, mobile phones provided to ineligible officials should be taken back
and payment of call charges stopped immediately .The irregular payments of call charges
made in respect of ineligible officials may also be recovered from such officials.
In future, procurement of stores may be made after realistic assessment of the
requirement so as to avoid idle investment of unutilised stores.
Materials lying in bags, bundles, cartons etc should be opened and articles, which have
already become time-barred, may be disposed off. Any perishable article should be
distributed to the people living in intermediate shelters at the earliest before they become
unusable, particularly in the light of the directions issued by the Circuit Bench of Kolkata
High Court for continuance of free ration supply beyond 31.10.2005. An Action Plan
may also be evolved for fruitful utilisation of all other materials received for
relief/rehabilitation.
Materials such as Televisions, Beds etc, which were distributed to the relief camps may
be located and taken back to stock and stored properly for future use. Stock Registers
showing the receipt and issue of bicycles, LPG stoves and sewing machines may be
reconstructed on the basis of available records. Similarly, utilisation of the items
transferred from Directorate of Social Welfare to the O/o the Deputy Commissioner
(Andaman) may also be ascertained and kept on record..

 The gensets distributed to various islands may be taken back from the village captains/
departments or their cost recovered from them.
The entire quantity of bamboos procured may be fruitfully utilised at the earliest and in
future assessment of requirement may be made on realistic basis to avoid unfruitful/
wasteful expenditure and/ or procurement in excess of actual requirement.
All the tent parts of the 577 tents which are yet to be assembled needs to be located and
stored properly for future use. Tents already distributed and which are now not required
for relief purpose should also be taken back to stock.
Against purchases of Rs 8.81 crore from Power Grid Corporation of India Ltd. (PGCIL)
and National Thermal Power Corporation (NTPC), expenditure sanction of the Ministry
of Power has been sought for Rs 8.86 crore which needs to be reconciled. Further
payments to PGCIL and NTPC in respect of the above purchases may be released only
after receipt of administrative approval and expenditure sanction of the Ministry of
Power and after deduction of the amounts already released.
Since the awarding of construction work to ANIIDCO involves payment of additional
liability in the form of service charges/ profit margin, the works should be awarded to the
construction agencies of the Government e.g. APWD, CPWD, ALHW etc. Thus, the
awarding of the work of construction of Integrated Child Development Scheme (ICDS)
centres to ANIIDCO may be reviewed in the light of this recommendation.
As the special package envisaged immediate restoration of fishing activity and
rehabilitation of means of livelihood to fishermen, effective measures are to be taken to
ensure that the funds allocated under the package are utilised at the earliest and the
fishermen are released the eligible assistance/ subsidy without any further delay.
The norms prescribed for regulating the subsidy/assistance should be strictly adhered to
while processing the claims of the affected fishermen
Effective monitoring is required to ensure that the NGOs complete all the schools
assigned to them at the earliest. Further, action may also be initiated to start the work of
the remaining schools as early as possible.
The recommendations made by the Inventory Audit Team may be implemented at the
earliest.
The entire quantity of plastic rope procured and bamboos received may be utilised
fruitfully at the earliest and in future, assessment of requirement of all articles may be
made on realistic basis to avoid unfruitful/wasteful expenditure and/or procurement in
excess of actual requirement.

 The approval of the Government of India for identification of tribal beneficiaries on the
basis of Tuhet system may be obtained to regularise the payments made in deviation of
the approved guidelines. In other cases, the system of identification of beneficiaries
should be made foolproof after taking into account all the prescribed/ specified norms in
order to ensure that the genuine beneficiaries are not left out and irregular payments
made to the ineligible persons may be recovered.
Approval of the Government of India should be obtained for the methodology adopted for
assessment of crop/land loss in tribal areas.
Ex-gratia payment/compensation is made by cheques only to ensure transparency in
distribution of gratuitous relief amounts
All payments made through Acquittance Rolls including payments made on the basis of
thumb impressions should be certified by an authorised officer so as to authenticate such
payments.
Action may be taken to re-issue all the time-barred cheques and to issue the undisbursed
cheques to the concerned persons and to ensure that all eligible beneficiaries are paid
ex-gratia/ compensation/ enhanced agricultural compensation without any further delay.
Payment of compensation for land loss to individuals in ANI should be regularised, if
necessary, either by suitably amending the Andaman and Nicobar Islands Land
Regulation Act and/ or the relevant sanction orders. Norms may also be formulated for
compensation of loss of non-agricultural land.
Compassionate appointments under the proposed scheme should be stopped till approval
of the Government of India to the scheme is accorded. The matter may also be taken up
with the Government of India for expediting its approval. Any compassionate
appointments already made under the proposed scheme should also be regularised with
the approval of the Government of India.

Action may be taken for the finalisation of the Disaster Management Plan, including
therein all the guidelines/instructions received from the Government of India, at an early
date.

All the prescribed periodical returns to the MHA and Government of India may be sent
timely.
An effective Monitoring mechanism may be instituted to assess the physical and financial
progress of the implementation of the various activities and to coordinate between the
various implementing agencies in order to increase the efficacy of the relief,
rehabilitation and reconstruction measures.

Draft Report on the Performance Audit on Tsunami Relief, Rehabilitation and Reconstruction
relating to the Union Territory of Andaman and Nicobar Islands

1.

Introduction
An earthquake of the magnitude of 9.3 on the Richter scale occurred at 0629 hours IST
on 26.12.2004 off the coast of Sumatra generating a massively destructive Tsunami that hit the
coastal states of Andhra Pradesh, Tamil Nadu, Kerala and the Union Territories (UTs) of
Pondicherry and the Andaman and Nicobar Islands (ANI) causing extensive loss of lives and
property. 10273 people were reported to have lost their lives and 5832 people are missing, who
are feared to be dead. Nearly 28 lakh people in 1089 villages in these States and UTs were
affected. The districts of Nagapattinam, Kanyakumari and Cuddalore in Tamil Nadu, Kollam in
Kerala, Karaikal in Pondicherry and the Nicobar group of islands were severely hit. The Tsunami
also resulted in severe damage to coral reefs, mangroves, beaches, forest cover, jetties, roads and
increase in saline areas in these States and UTs.
ANI consists of two districts namely, Andaman District and Nicobar District. All the
islands suffered damages in the disaster in which the Nicobar District was the worst affected. ANI
have experienced almost 10,000 aftershocks since 26th December 2004, of which more than 200
have been registered as moderate earthquakes of the magnitude of 5 and above on the Richter
scale. Till date, 417 people have been identified as dead and 2528 persons are reported to be
missing in the disaster.
2. Scope of Review

Audit Objectives
The performance audit on the Tsunami Relief, Rehabilitation and Reconstruction aims
to assess the efficacy of disaster management system in place in the affected States and UTs for
ensuring disaster preparedness, saving human lives, improving physical surroundings to limit
damage, developing Tsunami forecast and warning system and strategy for disaster reduction.
The audit also includes examination of planning for need assessment of the affected people, the
delivery of relief to the targeted beneficiaries, rehabilitation measures undertaken and
reconstruction work. The efficiency and effectiveness of the expenditure incurred by the
Andaman and Nicobar Administration on relief, rehabilitation and reconstruction out of financial
assistance and budgetary support provided by the Union Government was also examined in audit.

Audit Methodology
The Performance Audit Review under the supervision of Director (ANI) began the review
with an Entry Conference on 09.11.2005 under the Chairmanship of the Chief Secretary,
Andaman and Nicobar Administration (Administration) in which all the audit objectives were
discussed with the concerned officers of the various departments of the Administration. The
Performance Audit Review was taken up as per the Review Guidelines and covered both the
Districts of Andaman and Nicobar Islands. The findings on all the themes given in the Guidelines
were initially communicated to the Administration through Audit Observations and the Review
was concluded by holding an Exit Conference on _____________ wherein all the Audit Findings,
Observations and Recommendations were discussed with the officers of the Administration.
3.

Audit Findings

3.1

Setting up of Institutional Mechanism for Disaster Management

A Crisis Management Plan (CMP) was circulated by the Cabinet Secretary in June 1987,
which was subsequently revised in 1989.In line with the suggestions of the CMP, the
Administration constituted a Union Territory Level Disaster Management Authority in November
2001. Subsequently, in November 2003, the Secretary (Security), Cabinet Secretariat informed
the Administration to prepare detailed Contingency Plans for handling crisis effectively and in a
well planned manner. Accordingly a Disaster Management Regulation (DMR) and a Disaster
Management Plan (DMP) were formulated. However, neither the DMR nor the DMP listed
Tsunami as a potential hazard for the Andaman and Nicobar Islands (ANI) though two instances
of Tsunami occurrences in the ANI were mentioned in the DMP. As such, no special measures in
case of a Tsunami disaster found place either in the DMR or the DMP. Even after a lapse of one
year of the Tsunami disaster, the DMR and the DMP are yet to be suitably amended to define the
policy objectives for disaster risk assessment, mitigation, prevention and preparedness in case of
a future Tsunami.
Further, the following facts would indicate that the Administration did not play a proactive role in increasing the disaster preparedness and disaster mitigation management either in
the pre-Tsunami or in the post-Tsunami period:a) In order to augment the pre-disaster risk assessment techniques, the development of
Tsunami detection, forecasting and warning dissemination centres were of immense

importance. Although plans for establishment of four Emergency Operation Centres

(EOC) have been approved at an estimated cost of Rs. 263.42 lakh but the work of only
one EOC has been taken up till date.
b) With a view to increase preparedness and for mitigating future disasters, the DMP
envisaged imparting orientation training to the key functionaries belonging to Police
Force, Fire Service, Home Guard Organisation, Doctors, Engineers etc. and selected
members of the public in forecasting, warning, dissemination and evacuation techniques
but no such training programmes had been organised by the Administration till date.
Even when, the National Institute of Disaster Management organised a training
programme on disaster management in July 2005, in which the Administration was
required to nominate nodal officers, members of UT/ District Disaster Management
Committee, SDMs/ ADMs, only one officer was nominated by the Administration for
the said training.
c) Six satellite phones received from the Ministry of Home Affairs (MHA) on 27.12.2004
were used for maintaining link with Nicobar District during relief operations. In
February 2005, the Director (NDM III), MHA requested the Administration to return the
phones and to procure new ones so as to keep them in readiness for disaster
management. Although the satellite phones have been returned to the MHA after relief
operations but new ones are yet to be procured.
d) 166 buildings were identified as vulnerable structures in Port Blair itself in the pre
Tsunami period, but the work of retrofitting was not taken up. In the post-Tsunami
period, the work of identification of vulnerable structures is yet to be completed. The
Building Bye-Laws have not been reviewed after Tsunami. Further, the Land Use and
Zoning Regulations are yet to be formulated.
e) Neither any assessment of damages to coral reefs has been made nor plans for
construction of location specific sea-walls and coral reefs for mitigating future Tsunami
disasters have been prepared despite a lapse of more than one year from the Tsunami
disaster.
f) A total of 7166 hectares of land was targetted for coastal belt plantation. However, due
to non-identification of areas at many places, only 101 hectares were targetted for
plantation during the year 2005-06 against which 98.09 hectares has been achieved till
31.12.2005.

1.1.2

Under Section 3(1) and 3(2) of the Environment (Protection) Act 1986, the coastal stretches
of ANI were classified under Category IV (CRZIV). The Act provides that the Administration
should prepare Coastal Zone Management Plans (CZMP) identifying and classifying the Coastal
Regulation Zone (CRZ) Areas and obtain approval of the Ministry of Environment and Forest
therefor. The work of preparation of CZMP in ANI was initiated only in August 2004 in
pursuance of the directions of the Honble Kolkata High Court. The work for preparing the
CZMP Maps was entrusted to the Institute for Ocean Management, Anna University, Chennai but
the same was delayed due to change in the coastal geomorphology and shifting of High Tide
Lines in the islands after the earthquake and resultant Tsunami in December 2004. As a result, the
coastal areas are yet to be mapped for hazards, vulnerability and risk analysis even after a lapse of
one year of the Tsunami disaster. Thus, due to non-completion of Coastal Area Mapping, the
Administration is neither in a position to demarcate the No Construction Zone from the High
Tide Line nor to identify the violators of CRZ. Even in the pre-Tsunami period, the
Administration had not enforced the provisions of CRZ strictly and only one case had been
initiated, that too at the instance of a suo motu order of the Kolkata High Court.
Audit, therefore recommends the following measures be taken to put in place an efficient
institutional mechanism for increasing the efficacy of disaster preparedness, mitigation and
disaster management in case of a future Tsunami disaster:
a)

The DMR and DMP may be suitably amended with special emphasis on disaster
preparedness and disaster management in case of a Tsunami.

b)

EOCs may be set up at the earliest in both Andaman and Nicobar District for better predisaster assessment, forewarning, dissemination and mitigation of disasters

c) All key departments may be imparted orientation training programmes in dissemination and
evacuation techniques. Involvement of common people may also be encouraged through
holding of workshops /seminars/ awareness camps etc to increase public awareness to
disasters.
d) Construction of sea-walls, coral reefs, plantation of mangroves, as well as identification and
retrofitting of all vulnerable structures may be taken up and completed at the earliest to
reduce the impact of damage in future Tsunami disaster.
e) Mapping the coastal areas for hazards, vulnerability and risk analysis alongwith
demarcation of High Tide Lines and No Construction Zones may be completed
expeditiously and inhabitants in these zones moved/ resettled in other areas. In case of
shortfall of necessary revenue land for this purpose, proposal for de-reservation of forest

area may be sent to Ministry of Environment and Forests for approval. Further, norms for
civil constructions in coastal areas should be formulated incorporating therein Tsunami
resistant designs and plans. Violators of such norms as well as Coastal Zone Regulations
should be identified and prosecuted.
f)

Cases of resettlement due to the change in geomorphology of the islands should be taken up
and land to the affected families should be provided at higher regions, if necessary by dereservation of forestland on one-time basis with the approval of the Ministry of Environment
and Forests.

3.2 Adequacy of relief funds

3.2.1

An amount of Rs 3651.41 crore which was later revised to Rs 3836.56 crore was
projected by the Administration to the Ministry of Home Affairs in January 2005 through a
Memorandum on Earthquake/ Tsunami Damages as the requirement of funds for the purpose of
relief, rehabilitation and reconstruction. Such requirement was computed on the basis of inputs
received from various departments of the Administration.
Scrutiny of the Memorandum on Earthquake/ Tsunami Damages revealed that the
requirement of funds was highly inflated due to the following reasons:
(a)

Adoption of different market rates to those projected by the concerned

departments.

(b)

Projection of demand without actual survey of losses/ damages.

(c)

Duplication of demand.

(d)

Computation of requirement in excess of prescribed norms.

(e)

Projection on purely ad-hoc basis.

(f)

Inclusion of projects not connected to relief, rehabilitation and reconstruction.

Further, the Recommendation of the Central Team during their visit to the Islands from
31.01.2005 to 01.02.2005 was Rs. 988.80 crore only against the projected requirement of Rs.
3836.56 crore.
3.2.2

Funds for Tsunami Relief, Rehabilitation and Reconstruction were received by

the Administration from the following sources during the years 2004-05 and 2005-06:(a)

Prime Ministers Relief Fund (PMs Relief Fund)

(b)

Lieutenant Governors Relief Fund (LGs Relief Fund)

(c)

Member of Parliament Local Area Development Scheme (MPLAD)

(d)

Budget Allocation under MH 2245 (Rajiv Gandhi Rehabilitation Package)

However, complete details of the monetary assistance and relief materials provided by NGOs/
External Agencies to the affected people were neither available nor accounted for by the
Administration.
The utilisation vis--vis fund received/ allotment from each source was test checked and the
findings are detailed below:a) Prime Ministers Relief Fund
(i) An amount of Rs 1,00,000/- as ex-gratia from the PMs Relief Fund for payment to
the next of kin of identified dead and missing persons was announced. Till the end of
December 2005, the names of 411 cases of identified dead and 2373 cases of missing
persons have been forwarded by the Administration to the Prime Ministers Office
from February- March 2005 onwards for sanction of ex-gratia. Cases of 6 identified
dead and 155 missing persons have not yet been forwarded to PMs Office for want
of bank account numbers. Cheques in the names of the legal heirs are being sent
directly to the beneficiaries. In addition, an amount of Rs 12.03 crore has also been
received by the Administration from the PMs Relief Fund towards social
infrastructure reconstruction in the Tsunami affected areas. The entire fund is yet to
be utilised.
(ii) The identification of the next of kin in respect of missing persons for payment of exgratia from PMs Relief Fund was incorrectly done in 10 cases in Nicobar District.
Out of this, in 7 cases the ex-gratia was sanctioned and disbursed. On detection of the
error, recovery has been effected in 4 cases but recovery in respect of 3 cases relating
to Katchal is yet to be made till date.
b) Lieutenant Governors Relief Fund
(i) Out of an amount of Rs 11.48 crore received as donation to the LGs Relief Fund
during the post-Tsunami period, Rs 5.72 crore has been released as relief payments
for disbursal through the Offices of the Deputy Commissioner (Andaman) and the
Deputy Commissioner (Nicobar). However, utilisation certificates for Rs 75.29 lakh
only have been received till 31.01.2006.
(ii) An amount of Rs 12,500/- was utilised by the O/o the Deputy Commissioner,
Nicobar for purchase of revenue stamps, which was irregular.
c) Member of Parliament Local Area Development Scheme (MPLADS)

During 2005-06, the Members of Parliament had consented for release of an amount
of Rs.21.15 crore for nine rehabilitation works in Tsunami-affected areas. Out of this, only
Rs. 10.75 crore has been received from the Members of Parliament, but no action has been
taken to obtain the remaining amount of Rs 10.40 crore. While estimates for six projects have
been sent to Government of India for approval, the estimates for the remaining three projects
are still awaited. As such, the entire fund of Rs 10.75 crore received for Tsunami related
rehabilitation works remains unutilised.
d) Budget Allocation under MH- 2245 (Rajiv Gandhi Rehabilitation Package)
The Government of India had approved a total assistance of Rs 892.16 crore (Rs
821.88 crore in 2004-05 and Rs 70.28 crore in 2005-06 as additional compensation for
farmers) against which only Rs 701.99 crore had been released under the Major Head-2245Relief on Account of Natural Calamities. The funds released and utilisation thereof as of
October 2005 was as under:(Rs in crore)
Financial Year

Funds under MH- 2245

2004-05
2005-06

Plan
0.49
2.10
2.59

Utilisation as
of 10/05

TOTAL

Non Plan
125.02
574.38
699.40

Total
125.51
576.48
701.99

123.53
149.46
272.99

Scrutiny of the funds released and its utilisation revealed the following
shortcomings in the management of funds:(i)

There was no Central Accounting System for accountal of all the funds received from
various sources resulting in overlapping and non-utilisation of funds leading to
surrender of funds.

(ii)

The original grant under MH- 2245 for the year 2004-05 was Rs 0.47 crore. After the
Tsunami disaster, the Prime Minister announced an amount of Rs 200.00 crore in
December 2004 as a special package for Tsunami Relief. However, the
Administration sought for Rs 100.00 crore only as Supplementary Demand and reappropriated Rs 25.04 crore internally to MH-2245 during the year 2004-05. The
entire fund of Rs 125.51 crore so provided in 2004-05 under MH-2245 was not
utilised fully and an amount of Rs 1.98 crore was surrendered. On the other hand, no
fund under MH-2245 was allotted in 2004-05 to Port Management Board (PMB)
although they were responsible for the repair and reconstruction of jetties. As a result
an amount of Rs 4.07 crore had been utilised by PMB by diverting Plan funds from

MH-5051 and placing it with the Andaman Lakshadweep Harbour Works (ALHW)
for Deposit Works. Though the Administration had not sought for the entire amount
of Rs 200.00 crore announced initially under the special package, Plan funds were
diverted for Tsunami related work. Further, funds provided under MH-2245 were also
not fully utilised.
(iii)

Utilisation of fund under MH-2245 in 2005-06 till October 2005 was also very poor
as detailed in Annexure-I. Only Rs 149.46 crore was utilised against allotment of Rs
576.48 crore which translates into 25.93 per cent fund utilisation. As in 2004-05, the
PMB again diverted an amount of Rs. 4.13 crore in 2005-06 also from MH-5051
(Plan) towards repairs and rehabilitation projects. In view of the poor utilisation of
the relief funds, it may be concluded that the pace of relief, rehabilitation and
reconstruction work in the Andaman and Nicobar Islands is very slow.

(iv)

As shown in Annexure-I, two departments showed a high percentage of utilisation of

funds in 2005-06, namely PMB (90.49 per cent) and Directorate of Rural
Development (81.63 per cent). However, they had not actually utilised the funds but
had merely placed them as deposit work to other departments i.e., ALHW (Deposit
Work of Rs 27.15 crore) and Zilla Parishad (Deposit Work of Rs 10.00 crore)
respectively. The procedure of placement of funds, for deposit works, with the
executing agencies through cheques payments was in violation of the procedure
prescribed under Paras 8.5 and 8.22 of the Civil Accounts Manual. The utilisation in
respect of other departments of Administration varied from 0.00 per cent to 48.25 per
cent. Due to allotment of fund far in excess of actual requirement, seven departments
surrendered an amount of Rs 75.04 crore in December 2005.

(v)

Departmental Advances of Rs.8.94 crore relating to 2004-05 (Rs. 0.15 crore -Plan
and Rs. 8.79 crore -Non-Plan) and Rs. 45.16 crore relating to 2005-06 (Rs. 0.53 Plan and Rs. 44.63 crore -Non-Plan) were drawn from MH-2245. The entire amount
of Rs 54.10 crore, as per Annexure-II, drawn during 2004-05 and 2005-06 remained
unadjusted for periods ranging upto 14 months though the same were required to be
adjusted within one month of their drawals. Further, Out of the advances of Rs. 8.94
crore relating to 2004-05, Rs.2.63 crore was drawn in March 2005 and kept in current
accounts in bank merely to avoid lapse of funds. Non-adjustment of Departmental
advances and drawal of funds at the fag end of the financial year to avoid lapse of
funds were in violation of the provisions of General Financial Rules. Test-check of
the expenditure incurred from the departmental advances revealed that these funds
were incorrectly utilised for payment of working lunches (Rs. 4.92 lakh), payment of

airfares to professors on study tour (Rs. 1.27 lakh), purchase of SIM/Recharge cards
for mobile phones and revenue stamps (Rs.1.50 lakh). In addition, advances for
various incidental expenses (Rs. 3.59 lakh) were given to officials involved in relief
work, which were also lying unadjusted. Further, an amount of Rs. 15 lakh out of the
funds released under the plan budget of MH-2245, meant for enhancing preparedness
in managing disasters, was drawn as departmental advance and irregularly diverted
for other purposes.
(vi)

In 15 cases, funds from MH-2245 and LGs Relief Fund amounting to Rs. 18.60
crore, as per Annexure-III, were kept in Bank accounts for phased out payments,
which were opened and operated without prior permission of the Ministry/Controller
General of Accounts (CGA) in violation of the provisions of the Receipts and
Payments Rules and Civil Accounts Manual. Several irregularities were noticed in
the opening and operation of such accounts. Two such cases are cited below as
illustrative examples:a) A departmental advance of Rs. 92,40,000/- was drawn by the Assistant
Commissioner (Settlement) in March 2005 in connection with payment of exgratia/assistance for severely and marginally damaged houses @ Rs. 2000/- to
4620 families. The bill was passed by the PAO-I, Port Blair and the cheque for
the above amount was issued in favour of Syndicate Bank instead of the DDO,
for reasons not on record. The Assistant Commissioner (Settlement) opened a
current account (No.99003070000038) on 15th March 2005 with the Syndicate
Bank depositing the said cheque with them. However, prior permission of the
Ministry/CGA, as required under Rule 191 of the Receipts and payments Rules
and Para 16.7 of the Civil Accounts Manual was not taken. Cheques for the exgratia payments were issued from this account from 21 st March onwards although
this account was credited with Rs. 92,40,000/- only on 23 rd March 2005. As the
account was a current account, the bank cleared the cheques issued from this
account from 21st March 2005 itself resulting in the account exhibiting a minus
balance till 23rd March 2005, when the amount of Rs. 92,40,000/- was actually
credited. Due to the over-drawal, the bank debited the account by Rs. 462.84 as
charges for over-drawal but the debit was subsequently cancelled. An amount of
Rs. 21.81 (Rs. 19.60 and Rs.2.21 in March 2005 and November 2005
respectively) was also charged to this account as bank charges. It was also
noticed that in two cases, cheques were encashed for Rs 1,000/- and Rs 2,700/although all the beneficiaries were sanctioned at the uniform rate of Rs 2,000/-

vide the order dated 14.03.2005 mentioned above. Till date, 4523 beneficiaries
had been paid and for the remaining 97 beneficiaries, the balance in the account
should have been Rs 1,94,000/-. However, due to the above mentioned facts, the
balance in the account as on date was Rs. 1,94,278.19. Thus, there was lack of
monitoring of the ex-gratia payments in addition to the fact that the opening of
the account itself was without the proper sanction of the Ministry/ Controller
General of Accounts merely to avoid lapse of funds.
b) An amount of Rs 54,45,795/- was received on 10.03.2005 by the Deputy
Commissioner (Andaman) from the Lieutenant Governors Relief Fund vide
cheque no. 957044 dated 10.03.2005 drawn on Syndicate Bank, Port Blair for
disbursement of ex-gratia relief to small business enterprises in non- residential
premises. The cheque was sent to Syndicate Bank, Port Blair on 11.03.2005 with
a request to issue a Demand Draft for Rs 11,05,795/- in respect of payments
relating to Middle & North Andaman and to open a current account in favour of
Assistant Commissioner (Settlement), Port Blair for the balance amount of Rs
43,40,000/-. A current account no. 99003070000019 was opened on 12.03.2005
without any approval from the Ministry/ Controller General of Accounts and exgratia payments were disbursed from 14.03.2005 onwards by issue of cheques
from the said account. On 27.04.2005, a further amount of Rs 2,40,000/- received
from the Lieutenant Governors Relief Fund for ex-gratia payments was again
credited to the above current account. Subsequently, two departmental advances,
aggregating to Rs 84,64,144/- were drawn in June 2005 from MH 2245 and
credited to the current account.
Thus, an amount of Rs 1,30,44,144/- was credited to the current account
between the period March 2005 and June 2005 for various ex-gratia payments
and the account was operated in violation of the codal provisions.
(vii)

Rs 36.15 crore was spent by the MHA in 2004-05 from the allotment under MH-2245
of ANI. Out of this, Rs 29.45 crore related to purchase of tents and CGI sheets but
details of purchases made out of the remaining Rs. 6.70 was not on record. In
addition, an amount of Rs 9.55 crore was transferred by the Directorate of Accounts
and Budget, ANI to MHA in 2005-06. The vouchers for of the entire amount of Rs
45.70 crore were not available with the Administration.

(viii)

Similarly, details of purchase of relief materials amounting Rs 18,07,049/- made by

the Deputy Resident Commissioner, Chennai, Deputy Director of Shipping Services,

Chennai and Deputy Resident Commissioner, Kolkata out of the advances drawn
from MH-2245 were also not available with the Administration.
(ix)

Apart from the amount of Rs. 8.20 crore diverted from MH-5051 for
relief/rehabilitation works by PMB, as pointed out at Para 3.2.2 (d) (ii) above, it was
noticed that the Directorate of Education had also diverted an amount of Rs. 4.78
lakh from MH-2202 during 2004-05 for relief/rehabilitation related purchases
although an amount of Rs. 9.60 lakh of the funds allotted to them under MH-2245
remained unutilised.

(x)

Funds under MH-2245 meant for relief and rehabilitation works were utilised for
other purposes as pointed out in Para 3.2.2 (d) (v) above. In other such cases which
came to notice, it was seen that the Directorate of Civil Supplies, Office of the
Deputy Commissioner, Nicobar, Office of the Deputy Commissioner, Andaman,
Office of the Assistant Commissioner, Campbell Bay and the Directorate of
Education had diverted funds amounting to Rs. 40.07 lakh (Stationery charges- Rs
7.15 lakh, Mobile charges, Electric bills, TA, etc- Rs. 5.09 lakh, Mobile/WLL
phones- Rs.2.23 lakh, Payment of electricity charges- Rs. 3.23 lakh and Purchase of
fire fighting equipments-Rs. 22.37 lakh) from MH-2245 for regular purchases, which
was irregular.
In view of the above, Audit recommends that the following measures be
adopted for managing the funds in accordance with the prescribed financial rules:

a) The actual requirement of fund for relief, rehabilitation and reconstruction may be reassessed by taking into account the survey reports, studies by technically trained people/
agencies and realistic inputs in order to project the actual requirement on a realistic basis.
b) A Central Accounting System should be put in place with a mechanism of effective internal
control to monitor the utilisation of the funds so that funds received from all the sources are
properly accounted for and allotment of funds to various departments are also need-based.
Adequate steps should be also taken for a better fund management
c)

Effective measures should be undertaken for proper utilisation of the funds received from
various sources in order to step up the pace of relief, rehabilitation and reconstruction work
as well as to ensure that ex-gratia payments are received by the beneficiaries at the earliest.

d) It should be ensured that the funds, which have been allocated for relief, rehabilitation and
reconstruction activities, are not surrendered but are fruitfully utilised in order to fulfill the
purpose of allotment of such funds.

e) Action may be taken up for release of the balance of the consented amount of Rs 10.40 crore
from MPLADS. Action also needs to be taken to expedite the estimates of the remaining three
works and to obtain the approval of the Government of India for all the projects in order to
utilise the funds received under MPLAD scheme at the earliest for the projects for which such
fund was released.
f)

All departmental advances should be adjusted immediately and it should be ensured that
funds released under MH-2245 are not diverted for other purposes. Similarly, funds from
other heads should also not be diverted for relief purposes without the approval of the
competent authority for such diversion. All the diversions made till date should be
regularised by ex-post facto approval of the competent authority. Further, additional
requirements under any Major Head should be projected and necessary re-allocations made
by the approval of the competent authority.

g)

Drawal of departmental advances for deposit works should be stopped forthwith and
procedure prescribed under Paras 8.5 and 8.22 of Civil Accounts Manual should be strictly
followed for transfer of funds in connection with deposit works given to APWD/ ALHW etc.

h) Funds should not be kept in separate bank accounts without prior approval of the
Ministry/CGA. All existing bank accounts should either be closed immediately or ex-post
facto approval of the competent authority sought for regularisation of the opening and
operation of these accounts.
i)

The Director of Accounts & Budget should particularly ensure that proper procedure is
followed in issuance of cheques against bills passed and to effectively monitor the adjustment
of departmental advances drawn.

j)

Incorrect payments made from PMs Relief Fund should be recovered at the earliest.

k) Money received from relief funds should not be utilised for purposes other than those for
which they are provided.
l)

Details/ Vouchers in respect of expenditure incurred by the Ministry of Home Affairs, Deputy
Resident Commissioner, Chennai, Deputy Director of Shipping Services, Chennai and Deputy
Resident Commissioner, Kolkata out of the funds under MH-2245 may be obtained and
properly accounted for.

3.3 Disaster response mechanism and post-disaster activities

3.3.1

While rescue activities commenced almost immediately after the earthquake and Tsunami but the
Integrated Relief Command (IRC) under the Chairmanship of the Honble Lieutenant Governor
for monitoring relief works was constituted only on 31.12.2004 and became fully functional from

01.01.2005 i.e. after a lapse of 6 days from the disaster. Rescue and Relief operations were
undertaken by the IRC under Operation Maddad. 207 Relief Camps were set up and 46,000
people were given shelter in them. In addition, 5,700 people were evacuated to mainland. 1321
sorties of Indian Air Force aircraft were made between 26.12.2004 to 11.02.2005 for rescue and
relief operations. The MHA deployed about 2000 para-military personnel in all the islands.
3.3.2

The Secretary (Civil Supplies) was designated as the Relief Commissioner (Supplies) of the
Union Territory on 27th December 2004 and assigned with the responsibilities of procurement of
relief materials as well as to ensure that sufficient buffer stock of supplies was maintained at all
the islands. The requirement of relief materials were projected by the Relief Camp-in-charge to
the Special Relief Officers (SROs) stationed at the affected islands who would in turn project
such demand to the Sector Officers (SOs) stationed at Port Blair. The SOs would then place the
indent to the Relief Commissioner (Supplies) for their procurement.
Initially, no purchase committee was constituted for procurement of the relief materials
and quotations for supply of ten (10) items of relief materials were called for from only two cooperative societies, namely Consumer Co-operative Society (CCS) and Ellen Hinengo Limited
(EHL) and compared with the rates fixed for such items by the Directorate of Civil Supplies and
Consumer Affairs, ANI (CS&CA). The rates provided by both CCS and EHL were the same for
all the ten items and were also lower than the rates fixed by the CS&CA. It was decided that EHL
being a Tribal Cooperative Society would supply for Car Nicobar only, whereas CCS would be
given supply order for relief materials required for all other affected islands. Two nodal officers
were appointed as In-charge for receipt and despatch of materials at jetties and airstrips.
Payments for all the relief materials procured were to be made by the CS&CA. During the years
2004-05 and 2005-06 (till 12/2005), the CS&CA has incurred an expenditure of Rs. 29.55 crore
from the funds allotted under MH-2245 but the total expenditure on the relief materials procured
could not be quantified as all the bills submitted for procurement of relief materials are yet to be
paid.
Scrutiny of the records of CS&CA revealed the following shortcomings in procurement
of / payment for the relief materials:(a) Though hundreds of items of relief material were procured locally but rates had been called
for ten (10) items only. Supply orders for all the remaining items (except Colour TVs and
Dish Antennas) were placed directly on different agencies without following any codal
formalities for their purchase. Although a Purchase Committee was constituted in March
2005 but the system of placing supply orders without observing any codal formalities is
continuing till date. The Finance Department of the Administration had also observed in July

2005 that despite a lapse of more than five months from the disaster, purchases were being
made without observing codal formalities although there was sufficient time to do so. Test
check revealed that in three bills amounting to Rs 2.77 crore, an amount of Rs 1.90 crore
being 68.56 per cent of the billed amounts related to purchases made without obtaining any
rates.
(b) The Andaman and Nicobar Island Integrated Development Corporation Ltd. (ANIIDCO) was
chosen for supply of vegetables for relief purposes without observing any codal formalities.
In March 2005, an amount of Rs 50.00 lakh was paid to ANIIDCO as advance towards
supply of vegetables. However, it was observed that an amount of Rs 19.99 lakh had been
paid to ANIIDCO against bills raised by them during the period from May 2005 to November
2005 for supply of vegetables without adjustment of the advance against them.
(c) As a part of rehabilitation measure, the Honble Lieutenant Governor had approved
procurement of bicycles for distribution in Car Nicobar and Nancowry islands. The Relief
Commissioner (Supplies) on one hand purchased 2000 bicycles @ Rs 1,661/- from M/s TI
Cycles, Chennai in February 2005 on single tender basis without observing any codal
formalities and 100 per cent advance amounting to Rs 33.22 lakh was paid to the firm. On
the other hand, the Deputy Resident Commissioner (DRC), Kolkata was also directed to
purchase 1000 bicycles. The DRC, Kolkata obtained quotations in February 2005 from four
firms and supply order of 1000 bicycles was placed on M/s Ambika Exports Pvt. Ltd.,
Ludhiana who had quoted the lowest rate of Rs 1,370/- per bicycle. Had the purchase of the
initial lot of 2000 cycles been made after calling for quotations, the additional expenditure of
Rs 5,82,000/- {(Rs 1661 Rs 1370) X 2000} could have been avoided.
Subsequent to placement of supply orders for the bicycles on M/s Ambika Exports Pvt.
Ltd., Ludhiana, it was assessed that there was an additional requirement of 4000 cycles and
orders therefor were also placed on the same firm. In the meantime, the DRC, Kolkata had
informed the Relief Commissioner (Supplies) in February 2005 that the firm had agreed to
assemble the bicycles at Port Blair at their own cost and had suggested that the bicycles may
be shipped from Kolkata to Port Blair in a Complete Knock Down (CKD) condition to save
shipping space and transportation charges. However, in April 2005, the Director of Social
Welfare informed the DRC, Kolkata that the bicycles shall be got assembled in Kolkata itself
and sent by Government ships. Accordingly, the first lot of 1000 cycles were sent in
assembled condition and an amount of Rs.13,48,469/- was paid as freight charges for their
shipment from Kolkata to Port Blair. The remaining 4000 cycles were, however, packed in 9
containers and sent in May 2005 in CKD condition and a request was made by the DRC,
Kolkata to the Government of West Bengal to transport these cycles free of cost as relief

cargo. No such request had been made while transporting the first lot of 1000 cycles. The cost
of transportation of these cycles were yet to be made as of date though it was not on record if
the same was transported by the Government of West Bengal free of cost. Even if the cost of
transportation was to be borne by the A&N Administration, it would have amounted to Rs
2,52,000/- for the 9 containers @ Rs.28,000/- per container. It may therefore be concluded
that had the first lot of 1000 cycles were also transported in a CKD condition, the
transportation charges would have come to Rs. 63,000/ (Rs. 2,52,000/4000 x 1000) only
instead of. Rs.13,48,469/- actually paid for their transportation. Despite the fact that the DRC
had suggested in February 2005 itself that transportation of the cycles in CKD condition
would be cheaper, the first lot of 1000 cycles were transported in assembled condition
resulting in an avoidable extra expenditure of Rs. 12,85,469/- (Rs. 13,48,469 Rs. 63,000)
The second lot of 4000 cycles was assembled at Port Blair by the M/s Group Engineers
Corporation, who was the Agent of the supplying firm and assembling charges @ Rs. 165/per cycle amounting to Rs.6,60,000/-

was billed and paid to M/s Group Engineers

Corporation. As the firm had agreed in February 2005 itself to assemble the cycles at their
own cost, no amount was payable on account of assembling the cycles and the entire payment
of Rs. 6.60 lakh was irregular.
It would be evident from the facts above that due to non-observance of codal formalities
and injudicious planning coupled with allowance of irregular claim resulted in avoidable
extra expenditure of Rs.18,67,469/- (Rs 5,82,000/- + Rs. 12,85,469/-) and irregular
expenditure of Rs. 6,60,000/-.
(d) In 21 cases, payments were made to CCS at rates in excess of the rates quoted by CCS and
accepted by the Administration resulting in excess payment of Rs 4.87 lakh.
3.3.3

Relief/Rehabilitation materials received from NGOs and MHA as well as those procured by the
Administration reached ANI from 27.12.2004 onwards. While most of these items were received
in Port Blair, some were sent directly to the Nicobar district. The materials received in Port Blair
via ship as well as air were initially kept in the Central Godown, Haddo, Port Blair (Godown) and
subsequently handed over to the SOs for distribution through SROs posted in various islands. It
was found that no records of receipt/distribution of relief materials were maintained upto
05.01.2005.

Scrutiny of such records maintained from 06.01.2005 onwards revealed the

following shortcomings:(a) Although the Administration had issued an order in January 2005 to all concerned officers to
maintain stock registers as well as to follow the extant codal provisions in respect of the relief
materials received by them but it was noticed that there was a wide variation in the quantities

of relief materials sent as per the ships manifests with those entered in the Godowns
registers. Similar discrepancies were also found in the materials shown as sent by the
Godown with that received by the SROs.
(b) No records of receipt and despatch of materials were maintained till 05.01.2005. Even
thereafter, the records did not provide the details as to which items were procured by the
Administration and which were donated by NGOs. However, the materials procured/ received
were far in excess of requirements as is evident from the balance in stock lying at Godown
even after a lapse of more than one year from the date(s) of their receipt. No alternate use of
items has yet been decided by the Administration till date. As a result of non-utilisation of
these materials, the same may deteriorate/become unusable with passage of time e.g. 536 nos.
and 133 cartons of mineral water had become time expired due to non-utilisation.
(c) The materials received in the Godown were accounted for in Bundles, Bags, Cartons, etc and
as a result it was not possible to check whether all the quantities ordered for supply were
actually received.
(d) Consumer durables worth Rs. 21,23,082/- were procured for use in relief camps. In addition,
items which were received free of cost, such as solar lanterns, gensets etc were also supplied
to these camps. However, after closure of the relief camps, the whereabouts of these items
could not be ascertained in absence of any record therefor.
(e) The Directorate of Social Welfare (DSW) was given the responsibility of distribution of
edible/household items to relief camps in and around Port Blair as well as distribution of
Cycles, LPG Stoves and Sewing Machines to the Tsunami affected families. While the DSW
kept a stock of the edible/household items supplied but no Stock Registers for the cycles,
stoves and sewing machines were maintained though maintenance of the Stock Registers is
mandatory as per GFRs. As a result it could not be ascertained if all the cycles, stoves and
sewing machines received by them were actually distributed to the targetted beneficiaries.
Further, it was also seen that on the closure of the relief camps, a huge quantity of the unused
edible/household items were handed over by the DSW to the office of the Deputy
Commissioner, Andaman but the same was not taken into stock by them. Thus, it was not
ascertainable if such items had actually been utilised /distributed.
(f)

A Central Store in the Deputy Commissioner, Andamans office was established on

03.01.2005 for storing relief materials before their distribution to relief camps in and around
Port Blair. Materials received from various NGOs and Godown were kept in the store.
Scrutiny of the store records also revealed that 24 items of stock, received by the store
between 06.01.2005 and 07.07.2005 and accounted for in bundles, boxes, cartons etc were
lying in stock as of October 2005. Out of these, 39 cartons and 8 jars of mineral water had

expired. The value of the items could not be quantified as the store records indicated the
receipts and issues on quantity basis without recording the cost of the items.
(g) The Administration decided to import 1,00,000 bamboos for construction of intermediate
shelters and other uses. The Government of Kerala donated 1,04,999 bamboos, 17,930
numbers of which were received at various islands and the remaining 87,069 at Port Blair.
Till December 2005, only 31,263 numbers of bamboos (i.e. 35.91 per cent) out of those
received at Port Blair was issued to various government departments and the remaining
55,806 numbers remained in the Godown when it was decided that to shift them to an
alternate location for clearing the space in the Godown. The details of actual usage of the
bamboos delivered directly to other islands were not on record. In addition, as the
construction of intermediate shelters had been completed, the APWD had also informed that
there was no further requirement of the bamboos. Thus, the poor utilisation of the bamboos
indicated that the requirement projected by the Administration was not on realistic basis and
resulted in wasteful procurement of bamboos by the Government of Kerala.
(h) 2500 tents worth Rs. 5.04 crore were procured through the MHA for relief operations and
these tents were received in unassembled form at the Godown in 13378 bundles. Initially till
10th February 2005, 1969 bundles containing the tent parts were despatched to various
islands without assembling and thereafter 1923 tents were supplied in assembled form. As the
end of January 2006, the Godown had a stock of 324 bundles of tent parts, which could not
be assembled as they were found to incomplete sets. Due to despatch of tents without
assembling, materials relating to 577 tents were lying scattered in various islands and the
Administration could not put to use 577 tents (2500-1923). As a result an amount of Rs. 1.16
crore (Rs. 577/2500 X 5.04 crore) spent on procurement of these tents remained unfruitful.
3.3.4

Test check of purchases of rehabilitation materials made by the departments of the Administration
revealed the following:A.

An amount of Rs 70.00 lakh was allocated to the Directorate of Education

(Directorate) in the year

2004-05 under the MH-2245 (Non-Plan), against which purchases

were made for an amount of Rs 60.40 lakh. Further, an amount of Rs 4.78 lakh was incurred
from the MH 2002 towards purchases for Tsunami affected schools. Scrutiny of the records of
the above purchases revealed the following irregularities:(a)

An amount of Rs 22.37 lakh was utilised for procurement of fire fighting equipment from

the relief funds allotted under MH 2245 which tantamounts to misutilisation of funds.

(b)

Out of the above-mentioned purchases of Rs 65.18 lakh, purchases worth Rs 40.96 lakh

constituting 62.84 per cent of the purchases were made without observance of codal
formalities as prescribed under the General Financial Rules, which was highly irregular.
(c)

Orders for supplies worth Rs 24.75 lakh to Tsunami affected schools were placed directly

on one supplier in March 2005, on the basis of rates accepted by other departments of the
Administration instead of calling for quotations/ tenders. The supplier, however, supplied
articles worth Rs 1.98 lakh only and gave an undertaking that the remaining items would be
supplied by 31st March2005, on the basis of which the Directorate processed the bills and
the cheques thereagainst were also issued by the Pay and Accounts Office without actual
receipt of the goods. The Directorate however did not issue the cheques for the remaining
amount of Rs 22.77 lakh which have become time-barred and are lying with the Directorate
as the articles are yet to be received even after a lapse of 10 months from the date of
placement of supply orders. The processing of bills and issue of cheques thereagainst without
actual receipt of the materials was highly irregular and in contravention of the prescribed
procedures.
B.

In the post-Tsunami period, the Electricity Department (Department) procured DG Sets

and various Transmission and Distribution (T&D) materials for restoration of power supply and
other rehabilitation measures in ANI. Scrutiny of such purchases made by the Department
revealed the following shortcomings:a)

In order to procure 4 X 250 KW DG Sets for installation at Car Nicobar Power House,
the Department published a Notice Inviting Tender (NIT) in April 2005. Against this, three
offers were received from Port Blair based firms and the technical bids were opened on
12.05.2005 and it was found that one of the firms (Firm A) had neither submitted any details
of the DG set to be supplied nor the Original Manufacturer Certificate whereas the other two
firms (Firm B and Firm C) had not accepted the payment/ delivery terms indicated in the NIT.
All the bids were placed before the purchase committee who did not record any comment
regarding Firm A but recommended that certain clarifications may be sought from Firm B and
Firm C before opening the price bids. Subsequently, both the firms submitted their
clarification and also agreed to the terms of NIT. The Price Bids of only these firms were
opened and compared stating that the technical bid of Firm A was rejected by the purchase
committee though no such decision has been recorded in the minutes of the purchase
committees meeting. The bid of Firm C was found to be lower of the two and the supply
order for 4 X 250 KW DG sets was placed on it at a total cost of Rs 97.26 lakh.
It would be clear from the above that the bid of Firm A was not considered though
there was nothing on record to suggest that either any clarification had been sought for from

Firm A or the purchase committee had rejected their bid. As a result, the order worth Rs 97.26
lakh was placed by comparing only two bids, which was in violation of the General Financial
Rules. No proposal for re-tendering due to want of minimum bids was found on record.
b)

The Department procured 519 Gensets at a cost of Rs 170.24 lakh for

relief and rehabilitation operations. These gensets were distributed mainly in relief camps and
government departments. On closure of the camps the gensets were retained by the village
Captains and the government departments. It was ordered in July 2005 by the Administration
that the gensets issued to various captains and to the departments may be taken back and kept
in buffer stock for future use. In case, the government department intended to retain the
gensets, the cost thereof may be recovered from them. However, till date, neither the gensets
have been taken back from the village captains and government departments nor their cost
recovered.
c)

In connection with restoration of damaged power supply infrastructure in the Tsunami

affected Areas, 40 DG Sets worth Rs 1.13 crore and T&D Materials worth Rs 7.68 crore were
procured through National Thermal Power Corporation Ltd.(NTPC) and Power Grid
Corporation of India Ltd.(PGCIL) respectively. As the expenditure sanction for the cost of the
above materials was not within the powers of Honble Lieutenant Governor, a proposal was
sent to the Ministry of Power in November 2005 for according administrative approval and
expenditure sanction for the above purchases. However, expenditure sanction of Rs 8.86
crore was sought for though the materials valued Rs 8.81 crore only. Further, it was noticed
that before seeking such sanction, an amount of Rs 0.80 crore had already been paid to
PGCIL in October 2005 as part payment against the above purchases. In addition, an amount
of Rs 0.67 crore was also released to NTPC in January 2006 without awaiting the expenditure
sanction of the Ministry of Power.

d)

As mentioned above, the T&D items were procured from PGCIL for

immediate restoration of damaged power supply infrastructure. However, examination of

store records of the Department revealed that items were purchased without proper
assessment of the actual requirement. A few illustrative cases are given below:(i)

T&D items worth Rs 51.71 lakh were lying unutilised for

periods ranging from 8 to 9 months.

(ii)

It was seen that 54.245 km of Aerial Bunched Cable 3 core

25 sq mm + 25 sq mm was purchased in the post Tsunami period but only 27.528 km

was issued till 31.01.2006 leaving a balance of 26.717 km worth Rs 14.83 lakh lying in
stock for a period in excess of nine months. The balance stock constituted 49.25 per
cent of the procurement.

(iii)

In January 2005, the Department procured 2 nos. of 630

KVA transformers worth Rs 8.83 lakh though 3 such transformers were already in
stock. The entire stock of 5 numbers of transformers is lying unutilised as on
31.01.2006 even after a lapse of one year from the date of procurement.
C.

Scrutiny of records of the Office of the Deputy Commissioner, Andaman revealed that

immediately after the Tsunami disaster, it was proposed on 27.12.2004 to procure WLL phones
from Bharat Sanchar Nigam Ltd. (BSNL) in order to strengthen the communication network in
that office. However, as BSNL was unable to supply more than two WLL instruments, 23 WLL
and 2 GSM Mobile phones (handsets) were purchased from the open market at a total cost of Rs
2.23 lakh without following any codal formalities. The phones were distributed mainly to
ineligible officials such as Tehsildar, LGC etc. In addition, it was also observed that call charges
of the above phones were also being paid which was highly irregular.
3.3.5

In March 2005, the Ministry of Human Resource Development approved the reconstruction of 70
Anganwadi buildings, which were totally destroyed by the Tsunami. Initially, it was decided that
the work of reconstruction of the Anganwadis would be entrusted to the Panchayat or Tribal
Council or Andaman Public Works Department (APWD). Some NGOs also expressed their
willingness to reconstruct the Anganwadis but in July 2005, Andaman and Nicobar Island
Integrated Development Corporation (ANIIDCO), a UT Undertaking was proposed as the agency
for execution of the work of reconstruction of 70 Anganwadis at an estimated cost of 5.00 lakh
each stating that the APWD was completely preoccupied by other reconstruction works. The
NGOs would provide furniture, fixtures and accessories to the Anganwadis. Subsequently, in
August 2005, the Finance Department of the Administration objected to the awarding of the work
to ANIIDCO on nomination/ single tender basis. However, in January 2006, it was decided that
the work of reconstruction of the Anganwadis would be taken up as a part of the project for
reconstruction of the Integrated Child Development Scheme (ICDS) centers destroyed in
Tsunami. The finance for the project, estimated at Rs. 18.5 crore was to be co-funded by the
Directorate of Social Welfare (DSW) and an NGO-Save the Children. While the share of DSW
would be Rs. 3.50 crore, the NGO would contribute Rs. 15.00 crore.

Despite the earlier

objections of the Finance Department, the work was awarded to ANIIDCO, which is not purely a
construction agency, on single tender basis with a service fees provision of 5per cent of the
project cost. An amount of Rs 95.00 lakh was also drawn as departmental advance in January
2006 and deposited with ANIIDCO as first advance for execution of the work. Had the work been
awarded to APWD/ CPWD/ ALHW, the Administration could have avoided payment of the
service fees, being the profit margin of ANIIDCO.

3.3.6

The norms prescribed for assistance to fishermen affected by Tsunami were issued under MHA
circular F. No. 32-1/2005-NDM.I dated 24.02.2005. The Administration approached the MHA in
March 2005 for modifications in the assistance packages for fishermen which was duly approved
by the MHA in April 2005. Scrutiny of the records of the Directorate of Fisheries revealed the
following:-

(i) The Directorate of Fisheries had identified 1703 cases of fishermen affected by Tsunami, out of
which 1628 fishermen were made advance payment of subsidy @ Rs 10,000/- per beneficiary,
though there were no norms for such advance payment of assistance.
(ii) As per MHA circular mentioned above, the time limit for grant of subsidy assistance to fishermen
was 15 days whereas in cases of grant of subsidy as well as bank loan, the time limit was 30 days.
However, it is seen that till the end of November 2005, out of 1703 affected fishermen, only 816
cases of assistance have been settled which translates into only 47.92 per cent achievement
despite a lapse of nearly one year from the disaster.
(iii) Out of the package of Rs 21.05 crore allocated for ANI, amounts of Rs 1.70 crore and Rs 19.35
crore were allotted to the Directorate of Fisheries under the MH-2245 during the years 2004-05
and 2005-06 respectively for implementation of the various assistance packages for affected
fishermen. An amount of Rs 3.75 crore has been utilised for providing assistance to fishermen till
November 2005, which constitutes only 17.81 percent of the allocation. Due to such poor
utilisation of funds, the Directorate of Fisheries has surrendered an amount of Rs 6.65 crore in
December 2005 being 31.59 percent of the total package.
It is evident from the facts above that:a)

The physical and financial achievement in implementation of the assistance

package was very poor and the Directorate was also unable to utilise the funds
allocated.

b)

The norms prescribed for assistance to fishermen

were not strictly adhered to.

3.3.7

In the post-Tsunami period, 18 local, 45 national and 7 international NGOs had contributed in
various relief and rehabilitation measures such as supplying relief materials, development of
social infrastructure, providing counseling and cash assistance etc.
A coordination committee of the NGOs with Director (Social Welfare) as the Chairman
was constituted in 28.01.2005 with a view to facilitate interface and synergies between the
Government and the NGOs so as to effectively implement the relief and rehabilitation work as
well as to avoid the duplication of efforts. While no screening of the NGOs was made, it was

stipulated that foreign NGOs not registered in India would have to obtain clearance from the
Government of India. Scrutiny of records relating to relief/ rehabilitation measures undertaken by
the NGOs revealed the following: a)

All the NGOs had supplied various relief and rehabilitation materials, which could not
either be quantified or their value ascertained, as the same were not segregated from the relief
materials purchased by the Government. Due to lack of effective coordination between the
Government and the NGOs, the Administration procured relief and rehabilitation material far
in excess of requirement without taking into account the materials being provided by the
NGOs. As a result, huge quantity of relief/ rehabilitation items were lying in Central Godown
at Haddo as on 31.12.2005, i.e., even after a lapse of one year from the Tsunami disaster.

b)

In the Tsunami disaster 47 schools were washed out

while 38 schools were damaged in ANI. Out of 52 schools decided by the Administration to
be reconstructed, the NGOs signed MoUs for construction of 41 schools. In September 2005,
the Chief Secretary requested the NGOs to speed up the pace of construction work so that
they may be completed by 30.11.2005. However, it is seen that only 12 schools have been
completed by one NGO, which constitutes 29.27 per cent of the targetted number,
construction of 6 schools were in progress and 23 schools were yet to be started. The
remaining 11 schools, which were to be funded from Rajiv Gandhi National Relief & Welfare
Trust, MPLAD and Punjab Chief Ministers Relief Fund, were also yet to be started.
3.3.8

An Inventory Audit team was constituted by the Administration in May 2005 to conduct the
Inventory Audit of Relief & Rehabilitation materials received and issued in the wake of PostTsunami Operation. The Inventory Audit team checked the records relating to the materials
received upto 31.07.2005 and concluded that reconciliation of records was required.

3.3.9

In December 2005, a Public Interest Litigation was filed before the Honble High Court, Calcutta
Circuit Bench at Port Blair regarding deficiencies on the part of the Administration to provide
adequate ex-gratia / compensation and the post-Tsunami rehabilitation measures. The Circuit
Bench issued an interim order on 20 th December 2005 directing the Government of India and the
Administration to continue supply of free rations to the Tsunami disaster victims as it was doing
till 31.10.2005.
Audit, therefore, recommends that:a) Codal formalities should invariably be followed in all cases of future procurement and stock
registers/records in respect of materials should also be maintained. Records in respect of

materials already received should be reconstructed after reconciling the quantities recorded
in the ships manifests, Godowns stock registers, SROs stock records and Sector Officers
records. Materials procured by the Administration and those donated by the NGOs should
also be segregated and accounted for separately.
b) Either future claims of ANIIDCO should be adjusted against the advance payment of Rs
50.00 lakh already paid to them or the same may be recovered at the earliest
c) As the supplier of the bicycles, M/s Ambika Exports Pvt. Ltd., Ludhiana, had committed to
assemble the bicycles at Port Blair at their own cost, the irregular payment of Rs 6.60 lakh
may be recovered from the supplier.
d) Overpayments made to CCS Ltd. should be recovered without further delay.
e) Relief funds should not be used for the procurement of items such as mobile phones. Ex-post
facto approval of the Ministry may be obtained for regularisation of the above procurement.
Further, mobile phones provided to ineligible officials should be taken back and payment of
call charges stopped immediately .The irregular payments of call charges made in respect of
ineligible officials may also be recovered from such officials.
f)

In future, procurement of stores may be made after realistic assessment of the requirement so
as to avoid idle investment of unutilised stores.

g) Materials lying in bags, bundles, cartons etc should be opened and articles, which have
already become time-barred, may be disposed off. Any perishable article should be
distributed to the people living in intermediate shelters at the earliest before they become
unusable, particularly in the light of the directions issued by the Circuit Bench of Kolkata
High Court for continuance of free ration supply beyond 31.10.2005. An Action Plan may
also be evolved for fruitful utilisation of all other materials received for relief/rehabilitation.
h) Materials such as Televisions, Beds etc, which were distributed to the relief camps may be
located and taken back to stock and stored properly for future use. Stock Registers showing
the receipt and issue of bicycles, LPG stoves and sewing machines may be reconstructed on
the basis of available records. Similarly, utilisation of the items transferred from DSW to the
O/o the Deputy Commissioner (Andaman) may also be ascertained and kept on record.
i)

The gensets distributed to various islands may be taken back from the village captains/
departments or their cost recovered from them.

j)

The entire quantity of bamboos procured may be fruitfully utilised at the earliest and in
future assessment of requirement may be made on realistic basis to avoid unfruitful/ wasteful
expenditure and/ or procurement in excess of actual requirement.

k) All the tent parts of the 577 tents, which are yet to be assembled needs to be located and
stored properly for future use. Tents already distributed and which are now not required for
relief purpose should also be taken back to stock.
l)

Against purchases of Rs 8.81 crore from PGCIL and NTPC, expenditure sanction of the
Ministry of Power has been sought for Rs 8.86 crore which needs to be reconciled. Further
payments to PGCIL and NTPC in respect of the above purchases may be released only after
receipt of administrative approval and expenditure sanction of the Ministry of Power and
after deduction of the amounts already released.

m) Since the awarding of construction work to ANIIDCO involves payment of additional liability
in the form of service charges/ profit margin, the works should be awarded to the
construction agencies of the Government e.g. APWD, CPWD, ALHW etc. Thus, the awarding
of the work of construction of ICDS centres to ANIIDCO may be reviewed in the light of this
recommendation.
n) As the special package envisaged immediate restoration of fishing activity and rehabilitation
of means of livelihood to fishermen, effective measures are to be taken to ensure that the
funds allocated under the package are utilised at the earliest and the fishermen are released
the eligible assistance/ subsidy without any further delay.
o) The norms prescribed for regulating the subsidy/assistance should be strictly adhered to
while processing the claims of the affected fishermen
p) Effective monitoring is required to ensure that the NGOs complete all the schools assigned to
them at the earliest. Further, action may also be initiated to start the work of the remaining
schools as early as possible.
q) The recommendations made by the Inventory Audit Team may be implemented at the earliest.
3.4

Repair, Restoration and Reconstruction Activities

3.4.1

The repair, restoration and reconstruction activities in the post- Tsunami phase were mainly

entrusted to the APWD and ALHW. While APWD dealt with the immediate relief activities such
as restoration of water supply, repair and restoration of damaged roads and buildings and
rehabilitation works, on the other hand, ALHW was mainly responsible for restoration and
repairs of jetties, harbours etc.

3.4.2

Scrutiny of records of the APWD and ALHW revealed the following:-

(A) APWD

i.

The major Divisions of the APWD engaged in the post-Tsunami activities are located in the
Southern Group of Islands and South Andaman. The following activities of the APW D were
scrutinised in audit.
a) Procurement and installation of bailey bridges for immediate repair and renovation of road
and bridges.
b)

Installation of Reverse Osmosis (Desalination) Plants and SMC Tank under Water Supply
Scheme as a Medium Term Measure for restoration of water supply in different islands.

c) Construction of intermediate shelters for Tsunami affected persons.

d) Construction of foundation of prefabricated structures along with procurement of
mechanical

parts

through

DGS&D

for

restoration

of

government

non-

residential/residential buildings.
e) Procurement/ receipt of major plant, machineries, equipments and other stores either
through direct purchase by APWD or on hire charge basis through MHA and their issue to
the respective units for ultimate utilisation in Tsunami relief works.
f) Hiring of large equipments, machineries from private parties.
g) Transportation charges for relief/constructional materials, equipments, machineries and
plants from mainland to ANI as well as transportation within the different islands.
ii.

The provision of funds vis--vis the expenditure incurred by APWD during

2004-05 and 2005-06 (upto December 2005) are as under;

Year: 2004-05
Major Head
2245 Relief on
Account of Natural
Calamities

(Rupees in lakh)
Description
Flood and Cyclone
Drinking water supply
Repairs/restoration of
damaged
roads/buildings
Repair/restoration of
damaged Government
office building
Repairs/restoration to
damaged Govenment
residential building
For
intermediate
shelter

Fund received

Expenditure incurred
Nil
254.80
203.63

1159.00
(consolidated)

184.42
162.43
349.14

TOTAL

Year: 2005-06
Major Head

Description
Flood and Cyclone
Drinking water supply

1154.42

(Rupees in lakh)
Fund received
740.00
2500.00

Expenditure
incurred
205.29
266.34

2245 Relief on
Account of Natural
Calamities

Rears/restoration
of
damaged
roads/buildings
Repair/restoration of
damaged Government
office building
Repairs/restoration to
damaged Government
residential building
For
intermediate
shelter
TOTAL

3000.00

2857.60

1399.00

644.44

1724.00

507.60

4936.00

3450.17

14299.00

7931.44

It would be seen from above that at the beginning of the relief activities during the
period of three months of the year 2004-05, the expenditure incurred was at par with the
fund placed. However, the financial progress for the year 2005-06 is only 55.45 per cent
upto December 2005. This was mainly due to lack of proper monitoring, absence of
internal control, delay in sanctioning the work concerned coupled with delay in execution
of the works, as would be evident from the individual performance of the respective
Divisions of APWD scattered in Port Blair as well as in other islands, as detailed in
Annexure IV.
From Annexure IV, it would be evident that the progress of expenditure in respect of
various Divisions upto December 2005 ranged between 16.0 per cent and 102.5 per cent.
However, the APWD was lagging behind in respect of the execution of two major Tsunami
relief works like Provision of Drinking Water and Flood & Cyclone Damage Works, the
progress of which was 10.65 per cent and 27.74 per cent respectively. Reason for
withholding huge amount of Rs. 2,625.50 lakh by the Finance Officer to the Chief
Engineer, APWD, without any activity, was not on record.
iii.

Analysis of the physical progress in respect of all the civil works relating to
damages due to flood and cyclone, restoration of drinking water supply, repair of roads,
buildings and bridges, restoration of damages to National Memorials and rehabilitation
executed by the different Divisions of APWD scattered in Andaman and Nicobar group of
islands revealed that the progress of civil works were comparatively more poor due to
absence of proper monitoring, as indicated below:

Name of the
Division
CD-I, APWD, Port Blair
CD-II, APWD, Prothrapur

Number of Number
works to be of works
executed
not taken
up
20
8
7
1

Number
works
progress
8
4

of Number of Percentage
in works
of
works
completed
completed
4
2

20.00
28.57

CD-III, APWD, Prothrapur

PBND, APWD, Port Blair
PBSD, APWD, Port Blair
SAD, APWD, Port Blair
PHED, APWD, Prothrapur
CD, APWD, Car Nicobar
CD, APWD, Rangat
NACD,
APWD,
Mayabunder
CD, APWD, Diglipur
MID, APWD, Hut Bay
CD, APWD, Kamorta
CD, APWD, Campbell Bay
RCD,
APWD,
Wimberliganj

38
128
189
11
7
39
79
43

20
54
21
10
1
29
44
20

12
15
Nil
1
2
9
6
19

6
59
168
Nil
4
1
29
4

15.79
46.09
88.89
0.00
57.14
2.56
36.71
9.30

20
72
Not furnished
Not furnished
62

1
16

18
30

1
26

5.00
36.11

6
0

1.60

It would be seen from above that although 13 months have elapsed since the date of
start of the relief activities relating to civil works, except Port Blair South Division the
percentages of Tsunami relief (civil) works completed, compared to the total number of works
to be taken up and executed by the respective Divisions concerned, were between 0 per cent
and 57.14 per cent only. In all cases of execution of works by the respective Divisions,
necessary procedural formalities relating to sanction of the estimates were to be fulfilled
urgently and work completed on priority basis. However, out of 189 works assigned to the
Port Blair South Division, it completed 168 works, sanctions of which have not been obtained
till January 2006. Due to poor performance at Car Nicobar, which was the worst affected area,
the Divisional records were test checked and it was found that out of 39 civil works entrusted
to the Division, only one work i.e. Construction of Tsunami Memorial was completed, 9
works were in progress and balance 29 works were not taken up till January 2006, either due
to non-finalisation of procedural formalities or non-receipt of administrative approval and
expenditure sanction. Similarly, in Wimberlygunj Division, out of 62 works, only one could be
completed and one work was under progress. The balance 60 works, including 12 works
relating to provision of drinking water supply could not even be taken up till January 2006.
In all other Divisions, many of the civil works either completed or in progress were
taken up without obtaining sanction of the competent authority. In a number of cases, the
works were not taken up on the plea that necessary sanctions to the estimates were yet to be
received. These two procedures adopted concurrently by the Divisions concerned run counter
to each other. No co-ordination from higher authority to maintain uniformity in execution of
works was on record. This was mainly due to not having any action plan, absence of proper
monitoring at the higher level and lack of proper co-ordination. While the Division at Kamorta

did not furnish any information on civil works, the Division at Campbell Bay did not furnish
any of the information though called for. Thus due to absence of proper monitoring, delay in
taking up of the works and delay in finalisation of tendering procedure led to delay in the
execution of the works.
iv.

Due to devastating Tsunami damages, several lives were lost and houses

damaged severely particularly in southern group of islands and in South Andaman. As a result,
several thousands of people were marooned in these islands, who were initially shifted in the
relief camps. Administration, subsequently decided to construct Temporary Shelters for their
immediate accommodation. Further, it was decided to construct Intermediate Shelters instead
of the Temporary Shelters. The life of these Intermediate Shelters were between 12 and 24
months. The affected families were ultimately to be shifted to the Permanent Shelters to be
provided by the Administration. The proposed date of commencement of the construction of
Permanent Shelters was October 2005 and they were scheduled to be completed within 14
months. Accordingly, in April 2005, the Administration completed construction of 9,565
Intermediate Shelters in different islands for giving shelters to tribal as well as non-tribal
families, as detailed below:
Name of islands
Car Nicobar
Teressa, Chowra & Bambooka
Katchal
Nancowrie
Kamorta
Great Nicobar (Campbell Bay), Little
Nicobar, Kondul & Pillomillow
South Andaman (Port Blair)
Little Andaman
TOTAL

Intermediate
shelters
constructed
3,866
821
315
268
467
1,154
729
1,945
9,565

Type
families

of

Tribal
Tribal
Tribal
Tribal
Tribal
Non-Tribal
Non-Tribal
Non-Tribal

Although, it was subsequently decided by the Administration to provide incidental

facilities like providing cement concrete flooring, approach roads etc., but these have not
yet been completed. Moreover the incidental civil works relating to flooring etc. were to be
got executed through labourers from the tribal families. However, it could not be verified
from records as to whether the said works were actually executed by the tribals. Further,
construction of Permanent Shelters for shifting the families from the Intermediate Shelters,
have not commenced till January 2006. The issue of construction of the Permanent Shelters
is to be decided by the Administration in consultation with the Ministry of Urban

Development. Thus, delay on the issue of construction of Permanent Shelters has made
uncertain the shifting of affected population presently housed in Intermediate Shelters.
v.

As per the decision taken by the Administration in January 2005, 10

desalination plants (reverse osmosis) of 1000 litre per hour capacity for desalinisation of
sea water, along with compatible DG Sets as a compact unit were to be installed within a
distance of 500 metres from sea shore. The plants were to be installed for the benefit of the
Tsunami affected families in the southern group of islands. Moreover, as per the action
plan for restoration of water supply, all the plants were to be installed within 90 days.
Accordingly, 10 desalination plants along with the 40 KVA diesel-generating sets were
procured by APWD, through the Central Ground Water Board, at a cost of Rs. 171.12 lakh
and received between 8th March 2005 and 20th May 2005. Although the plants were
delivered to the different islands between 8th March 2005 and 26th August 2005,but the DG
Sets were delivered only between 18th May 2005 and 3rd October 2005. Reasons for delay
in despatching the DG Sets, being an integral part of desalination plant, along with the
plants was, however, not on record. As of January 2006, the base foundation work for
installation of the plants was completed by the APWD only at two locations but none of
the plants could be installed in any location. Consequently, 20 SMC Panel tanks of 22500
litres capacity valued at Rs 35.21 lakh, to be installed at the respective plant sites could not
also be installed.
Further, as per the terms and condition of the contract, 90 per cent payment was
released by Central Ground Water Board (CGWB) on behalf of APWD and balance 10 per
cent was to be released by June 2005 or after successful installation and commissioning of
the plants, whichever was earlier. Since base work for all the plants could not be completed
by APWD, none of the plants could be installed within the stipulated period. The CGWB
stated in June 2005 that as APWD could not satisfy the formalities to be observed within the
stipulated date, the balance payment would be released by the CGWB at the risk and cost of
APWD, for which CGWB would not take responsibility for any future complication. No
further development regarding installation of the plant was on record and all the desalination
plants with the DG Sets had been remaining unused at store at the respective location,
subjected to ravages of climatic variation in Andaman and Nicobar group of islands. Thus,
even after a lapse of one year, the benefit of extending the facility by APWD could not be
provided to the Tsunami affected families, particularly at the remote locations of southern
group of islands. Thus, due to post haste decision to procure the desalination plants,
generating sets and SMC panel tanks, before finalising the respective location and initial

base works relating to installation of the plants, APWD could not extend the projected
benefit to the Tsunami affected people till January 2006, apart from running the risk of
complications for installation of the plants beyond June 2005, as per the terms of the contract
for procurement.
vi.

As per the requirements received from different departments in ANI, APWD has
taken up on priority the work of construction of pre-fabricated structures for Agriculture
Department, Medical Department, Electricity Department, Police Department and Education
Department against the funds to be placed with individual departments under MH-2245, as
detailed below:
Name of the department

Number of prefabricated structure

131
38
47
120
70

Electricity department
Police department
Agriculture department
Education department
Medical department

Total

406

Thereafter, the Police Department placed additional requirement for 40 structures.

Thus the total number of pre-fabricated structures to be constructed by APWD was 446.
Stores Division, APWD, however, projected the requirement of 481 such structures.
Reason for variation in number of structures required vis--vis the projected quantity was
not on record. As of January 2006, the Stores Division could supply only 164 structures
and the remaining materials were stated to be arriving. The details regarding provision of
funds placed with the different departments together with up to date expenditure incurred
thereon are not available with APWD. Though CE, APWD desired completion of
foundation by November 2005 and erection of pre-fabricated structures by December
2005, the base foundation works in none of the islands could be completed till January
2006, resulting in un-necessary dumping of stores at different islands.
Test check of records of Minor Irrigation Division (MID), APWD at Hut Bay
revealed that as per the information furnished by the Executive Engineer, Stores Division,
APWD

at

Port

Blair

total

of

39

complete

set

of

pre-fabricated

structures have been supplied to the Executive Engineer, MID, Hut Bay on 28 th December
2005. However, the Division at Hut Bay received only 29 complete set of pre-fabricated
structures. The Executive Engineer, MID, Hut Bay could not ascertain reason for short
receipt of 10 complete set of pre-fabricated structures. In absence of any physical

verification of the Tsunami relief materials by the Stores Division, the actual balance at
store could not also be reconciled. Thus, cost of 10 Pre-fabricated structures valued at Rs.
55.35 lakh may become loss to government.
Apart from 29 complete set of pre-fabricated structures, the MID at Hut Bay has also
received 46 part structure (60 per cent of 25 structures, 50 per cent of 10 structures and 25
per cent of 11 structures) as of 31 st January 2006. Reason for supply of part structures of 46
Pre-fabricated structures together with its value was not on record nor stated by the MID,
Hut Bay. The reply furnished by the Stores Division did not reflect even any part supply of
the structures. Only 9 pre-fabricated structures have been installed by MID as of 31 st
January 2006 and none of the balance pre-fabricated structures could be installed. All the
46 partly supplied structures, together with 20 complete structures have been lying unused
at stores at Hut Bay. Thus, the purpose for which the pre-fabricated structures have been
procured by the Administration could also not be achieved.
vii.

One bulldozer worth Rs 54.67 lakh was received by the MID Hut Bay on 30 th March
2005 for utilisation in relief activities. Test check of records revealed that only in April 2005
the bulldozer was utilised for 27 days and from May 2005 to August 2005, it worked
between 2 and 10 days respectively per month. Since September 2005, the bulldozer
remained unused at Hut Bay, as there was no requisition for it. No attempt was also made by
the Executive Engineer, MID to transfer the bulldozer to any other units of APWD for its
gainful utilisation. Thus, the bulldozer costing Rs 54.67 lakh remained idle for 5 months and
was sparsely used in the previous 5 months.
Further, for Tsunami relief and rehabilitation works, the Administration has hired
earth moving machines, bulldozers, tractors etc either directly or through the MHA for
utilisation in the execution of works. Scrutiny of records of the Construction Division at
Car Nicobar revealed that those machines could not be utilised upto optimum level and the
machines remained idle without any work. The reason for the machines being idle was also
not recorded in a number of cases. As a result the Administration had to pay exorbitant hire
charges amounting to Rs. 22.63 lakh for the period when the machines remained idle
between March 2005 and January 2006, excluding the force majure periods.

viii.

For replacement/repair of damaged bridges, the Stores Division procured 14 bailey

type bridges at a cost of Rs 444.47 lakh and issued to five different Divisions for installation.
Accordingly, Stores Division APWD issued 14 bailey type bridges, between 19 th February
2005 and 23rd March 2005, to five Divisions as detailed below:

Division

Span

Number

MID, Hut Bay

40 SS
100 DSR

6
2

CD, Car Nicobar

150 DDR

CD, Campbell Bay

40 SS

CD, Diglipur

100 DSR
150 DDR

1
1

CD III, Prothrapur

40 SS

2
1

.
The scrutiny of records at MID, Hut Bay revealed that although the Division
completed foundation work of two 100 DSR bridges at a cost of Rs 20.23 lakh, the
Division did not receive any 100 DSR bridge but received only six 40 SS bailey type
bridges. Till January 2006, the Division could install only 1.5 number of 40 span bridges
and the balance 4.5 number of 40 span bridges had been remaining unused at store for
reasons not stated. The foundation work valued at Rs. 20,23,096 could not also be of any
benefit to the affected population. While CD II installed the bridge at site, CD, Diglipur
could complete installation of only one 100 span bridge but CD, Car Nicobar could not
install any of the bridges for reasons not stated. CD, Campbell Bay did not furnish any
information.
It would, thus, emerge that a majority of the bridges have not yet been installed
defeating the purpose for which the bridges were to be erected and installed even after a
lapse of one year from the date of their procurement.
ix.

There exists no system of internal control mechanism either between the Store
Division and other executing Divisions of APWD scattered in different islands or between
APWD and Administration. No physical verification of Tsunami relief, rehabilitation and
reconstruction materials procured by the Stores Division has been conducted for more than
13 months, since the date of procurement and start of Tsunami relief works in January 2005.
As a result, reconciliation of bulk of the materials supplied by the Stores Division to other
executing Divisions, scattered in different locations in the ANI, could not be done. However,
detailed check of records of the Division at Hut Bay, revealed that there was short receipt of
two 100 DSR bailey type bridges and 10 pre-fabricated structures valued at Rs 162.96 lakh.
Moreover, the Division also received 46 part Pre-fabricated structure, cost of which could

not be ascertained. The Division at Hut Bay could not ascertain any reason for short or
excess supply of materials. The Stores Division, APWD has also sent two tractors (HMT
4022) along with two trailers for use in on-going works of MID, Hut Bay. Thereafter, two
more trailers also sent by the Stores Division to Hut Bay without any requisition from MID,
Hut Bay. As a result, those two trailers have been remaining unused at store of MID, Hut
Bay since 16th December 2005. No attempt was, however, made by MID Hut Bay to transfer
the trailers to any of the Divisions of APWD for their gainful use. The cost of the two trailers
was Rs. 1.69 lakh. These have become excess beyond requirement and the reason for their
procurement was also not on record. In absence of any physical verification by the Stores
Division, the reason for such variation could not also be ascertained. Similarly, due to lack of
co-ordination, none of the 10 desalination plants could be installed within the stipulated date
of installation by the supplying firm.
x.

As per the discussion with the Relief Commissioner, the MHA in co-ordination with
many State Governments and other organisations were willing to provide relief materials
such as tool kits containing eight items on voluntary donation basis for distribution to the
Tsunami affected people in ANI. Whether the kits containing eight items on voluntary
donation basis have been received by the Administration or not could not be verified from
records. Subsequently, during MarchApril 2005 Government of Maharashtra supplied to
the Administration 6000x1000 metres plastic ropes weighing 177.5 MT valued at Rs 159.72
lakh. While receiving the materials, there was a shortage of 5.419 MT of ropes, but the
Stores Division, APWD made full payment to the Maharashtra Government without any
reconciliation. Thus, there was excess payment of RS 4.88 lakh towards cost of 5.419 MT of
ropes. These ropes were to be utilised for construction of Intermediate Shelters by APWD.
The APWD, however declined to make any use of them for construction of Intermediate
Shelters. As a result, the plastic ropes remained in the Godown. In May 2005, The Chief
Secretary proposed to provide one bundle of rope to farmers including those who were
engaged in animal husbandry, which was approved by the Honble LG with the suggestion
that the ropes may be provided to the fishermen also. The ultimate distribution of ropes
either by the Administration or by APWD could not be verified from records. Since the
purpose for which the ropes were obtained i.e., for construction of intermediate shelters for
the Tsunami affected people have not been fulfilled, the entire expenditure of Rs 159.72 lakh
proved to be unfruitful.

xi.

Due to acceptance of abnormally high rate varying from 14.6 per cent to 45 per cent,
beyond the maximum permissible limit of 10 per cent above the market rate in respect of

procurement and supply items, the Construction Division at Car Nicobar incurred an
avoidable extra expenditure of Rs. 3.42 lakh in the case of construction of a Tsunami
Memorial at Car Nicobar. APWD stated, in February 2006, that due to remoteness of the
locality and the work being urgent the extra burden had to be accepted. The contention,
however, is not tenable, as the requisite Tsunami materials could have been procured from
Port Blair, as the work was sanctioned in October 2005 and was to be completed only on 26 th
December 2005, the materials could have been transported in time through the Directorate of
Shipping Services.
xii.

Scrutiny of records of the Stores Division at Port Blair revealed that 800 MT of
CGI sheets, among other materials, were despatched in April 2005 to Kamorta for utilisation
in the works through the vessel MV Nancowry. The Executive Engineer, Kamorta informed
in June 2005 that due to tilting of the water barge berthed along the vessel MV Nancowry,
94.32 MT of CGI sheets fell into the sea. Whether the materials were loaded beyond the
capacity of the water barge was, however, not on record. This has resulted in a loss of Rs.
39.37 lakh towards cost of the sheets and its transport.

xiii.

For internal electrical works of intermediate shelters, Executive Engineer, Stores

Division despatched 70,450 metres of cables to Campbell Bay on 13 th April 2005 by the
vessel MV Nicobar. An official from APWD was placed on temporary duty to unload the
material at Campbell Bay and report back after complete delivery. The Executive Engineer,
Campbell Bay, however, reported that only 15240 metres were unloaded at Campbell Bay.
Thereafter on enquiry by the Stores Division, it was revealed that the balance quantity of
55210 metres of cables were not unloaded and returned to Port Blair by the same ship. The
balance quantity was again despatched to Campbell Bay by another vessel. Thus, due to
negligence in unloading the full quantity at Campbell Bay, the construction work was not
only delayed but also resulted in double transportation cost between Port Blair and Campbell
Bay.

(B) ALHW
i

The expenditure made by the ALHW against the deposits made as of December 2005 is as
under:Fund provided
by

Amount
deposited
(Rs. in lakh)

Expenditure
incurred upto
December 2005
(Rs. in lakh)

Percentage of
expenditure
incurred

Port
Management
Board
Director of
Shipping
Services
Total

4500.69

623.80

13.86

1510.302

38.34

2.54

6010.992

662.22

11.02

It would be seen that the progress was only 11.02 per cent in nine months. Slow
progress in execution of the works was mainly due to delay in finalisation of the tendering
formalities, preparation of the detailed project report, sub-soil investigation and taking up
of turnkey project with other attendant works. Although the poor performance had been
viewed seriously by the Chief Secretary in August 2005 itself, but there was no
improvement till December 2005.
ii

Test check of records revealed that the estimate for construction of a temporary jetty and
removal of debris from the channel of Kapanga in Katchal island amounting to Rs. 38.22
lakh was submitted by ALHW in March 2005 for which the administrative approval and
expenditure sanction was accorded by the Port Management Board in April 2005. The work
was executed immediately at a cost of Rs. 38.22 lakh.
It is seen from the minutes of the co-ordination meeting held in the chamber of the
Chief Secretary in August 2005 that the Katchal jetty could not be utilised as the scientific
data was not properly taken into account in the planning of the temporary jetty at Katchal.
This resulted in an injudicious expenditure of Rs. 38.22 lakh on construction of the jetty.

Audit, therefore, recommends the following:a) The physical and financial progress of the repair, restoration and reconstruction activities may be
paced up. Proper monitoring mechanism with internal control may be setup to ensure completion
of all the civil works as well as to avoid losses/ unnecessary expenditure/ injudicious expenditure
due to negligence.
b) All the civil works which were either completed or taken up without obtaining sanction of the
competent authority may be regularised by obtaining ex-post facto approvals.
c) The issue of construction of Permanent Shelters may be finalised early in consultation with the
Ministry of Urban Development and the work of Permanent Shelters taken up an early date so as
to shift the affected population presently housed in the Intermediate shelters.

d) Effective action may be taken for installation of the desalination plants, bailey bridges & prefabricated structures and for gainful utilization of the bulldozers, tractors, trailers etc. so as to
fulfill the purposes for which the above materials were procured/ hired.
e) Physical verification of all the materials procured for rehabilitation and reconstruction may be
conducted so as to reconcile the discrepancies in the various store records.
f)

The entire quantity of plastic ropes procured may be fruitfully utilised at the earliest and in future
assessment of requirement may be made on realistic basis to avoid unfruitful/ wasteful
expenditure and/ or procurement in excess of actual requirement.

g) Procurement of materials may be made as per the prescribed procedures and in all cases care
may be taken to ensure that materials are not procured at rates higher than the maximum
permissible limit.
3.5 Identification and Release of Assistance to the Beneficiaries
3.5.1

Guidelines for payment of ex-gratia to the next of kin of the deceased were issued by the MHA in
February 2005, on the basis of which the next of kin was defined as a blood relation who is a
legal heir. This was, however, extended to include grandparents, parents-in-law, legally adopted
children, sons-in-law and daughters-in-law with the approval of the Honble Lieutenant Governor
in June 2005. Ex-gratia / Assistance/ Compensation payments made in Andaman District and
Nicobar District were checked and the audit findings are given below:Andaman District
The ex-gratia payments in respect of Andaman District commenced only from March
2005 onwards and the position of payments in respect of Andaman District as on 31.10.2005 is
given in Annexure-V.
Scrutiny of the relevant records revealed the following:a. Out of total 64005sanctioned cases, 21548 cases for Rs 6.29 crore remained undisbursed
as on 31.10.2005. Of these, cheques issued in 502 cases amounting to Rs 54.47 lakh, as
per Annexure-VI, had become time-barred but the same are yet to be re-issued.
b. MHA approved an additional amount of Rs 70.28 crore as enhanced compensation to
farmers in September 2005 and the Administration directed all Deputy Commissioners
and Assistant Commissioners in September2005 to complete such payment by 15 th
October 2005. However, no payments of enhanced compensation have been made till

date although 2535 cases for Rs 4.24 crore, as per Annexure-VII, were sanctioned in
November 2005.
c. 17295 cases relating to ex-gratia and housing compensation for Rs 4.46 crore were
sanctioned in August 2005,as per Annexure-VIII, but the cheques were yet to be issued.
d. As per Deputy Commissioner, Andamans order no. 113 dated 28.02.2005, Committees
were constituted for disbursement of relief/ ex-gratia amounts to the affected families.
These committees were required to disburse the amounts in the presence of Panchayati
Raj Institution (PRI) members and to obtain the signatures of the beneficiary/ person
concerned. Further, the Pradhan/ PRI members present during the payments were
required to put their signature on the Acquittance Rolls alongwith the Tehsildar and
Agriculture officer concerned. Test-check of the Acquittance Rolls and Revenue
Inspectors Reports revealed the following irregularities/ shortcomings: i.

In all cases, the thumb impressions of the payees were not attested/ identified
by any authorised officer.

ii.

In a number of cases, the cheques were received and acquittances signed by

persons other than the beneficiary/ person to whom the relief was sanctioned.

iii.

In a number of cases, persons originally identified as beneficiaries for land loss

compensation were not paid the cheques citing encroachment as the reason.

e. It was found that sanctions in respect of ex-gratia payments had been made/ sanctioned
on the basis of Tehsildar/ Agriculture Departments reports, which were subsequently
found to be incorrect. Three such cases are cited below: -

i.

Cheque no. G-11672 dated 07.03.2005 for Rs 13,000/- had been issued in favour of
Shopping Complex, Calicut towards temporary relief and compensation for loss of
household articles although the shop was being used by Panchayat for keeping its
stores.

ii.

The Tehsildar, Port Blair recommended sanction of compensation in respect of 36

washed away houses and the same was sanctioned @ Rs 2,000/- each although
there were no such category in the norms for payment of compensation.

iii.

An amount of Rs. 67,38,195/- was sanctioned as compensation to 66 small and

marginal farmers of Little Andaman on the basis of the names forwarded by the
Tehsildar, Little Andaman. But, subsequently the Tehsildar himself pointed out that
15 out of the 66 recommended cases were not eligible for such compensation.

f.

Based on the reports of the Tehsildars, an amount of Rs. 3,75,020/- was sanctioned as
compensation for 37.89 hectares of land lost due to submergence by 318 families in
Rangat, Mayabunder and Diglipur. However, a report received from Director of
Agriculture, showed that there was no submergence of land in these areas.

g. On the basis of Agricultural Departments report, an amount of Rs 7.69 lakh was paid as
compensation for plantation loss to Andaman Plantation and Development Corporation
Ltd. which was a public limited company. The Implementation Cell of Administration
requested the Relief Commissioner, to take necessary action to recover the amount in
September 2005 as the compensation was meant for small and marginal farmers and not
for corporations. However, the amount is yet to be recovered.
h. In terms of Administrations Order No. 772 dated 01.03.2005, ex-gratia relief for fully
damaged houses was to be paid only if no temporary shelter was being constructed.
However, the Tehsildars reports recommending the sanction of ex-gratia for fully
damaged houses did not take into account whether temporary shelters had been given to
the proposed beneficiaries.
i.

An amount of Rs 6,00,000/- was sent in January 2005 to Hut Bay for payment in cash of
ex-gratia in the form of immediate relief @ Rs 2,000/- from the LGs Relief Fund though
such payments were required to be made by cheques.

Thus, the following conclusions may be arrived from the facts mentioned above:(i)

The pace of payment of ex-gratia etc. is very slow resulting in a substantial number
of beneficiaries being deprived of their legitimate compensation despite a lapse of
one year. This was also pointed out by the Chief Secretary vide his note dated
22.11.2005 with the direction to complete the entire ex-gratia payment by
05.12.2005. However, it is seen that the same has not materialised.

(ii)

As the system prescribed under the existing Financial Rules for payment through
Acquittance Rolls had not been followed coupled with the fact that the payments
made to illiterates on the basis of thumb impressions were not attested/ authenticated
and in some cases the acquittance was signed by persons other than the beneficiary, it
could not be vouchsafed that the actual beneficiaries had received the amounts due to
them.

(iii)

The system of identification of beneficiaries was not foolproof as even encroachers

were sanctioned compensation for land loss on the basis of reports submitted by the

Tehsildars/ Agricultural officers etc., as a result of which payments were made to

ineligible persons and in one case to a corporation.
(iv)

Specified norms were not being taken into account while recommending/ sanctioning
of ex-gratia payment in the cases of damages to houses.

(v)

Ex-gratia payments were paid to the beneficiaries in cash though the same were
required to be paid by cheques.

Nicobar District
The ex-gratia/ compensation/ assistance payments in respect of Nicobar District commenced
in January 2005 and the position of payments in respect of Nicobar District as on 31.12.2005 is given
in the Annexure-IX.
Scrutiny of the relevant records revealed the following:a. The tribal community of Nicobarese follows a system of extended joint family called
as Tuhet where all the members are not blood relations. As a result, in some cases
the next of kin of identified dead/ missing persons were not as per the definition of
next of kin mentioned above. As a result in some cases, ex-gratia payments were
made to nephews, cousin brothers, mothers brother, fathers sister, husbands brother
etc. The identification of beneficiaries/ next of kin on the basis of Tuhet system
was neither in conformity with the guidelines issued in this regard nor sent for
approval of the Government of India
b. Out of total 34924 sanctioned cases, as per Annexure-IX, 985 cases for Rs 1.03 crore
remained undisbursed as on 31.12.2005 (excluding compensation for agricultural
losses). Of these, cheques issued in 252 cases amounting to Rs 32.58 lakh, had
become time-barred but the same are yet to be re-issued.
c. The compensation for agricultural losses was initially paid as per the CRF/NCCF
norms for payment of land/ crop loss. In September 2005, MHA approved an
additional amount of Rs 70.28 crore as enhanced compensation to farmers and the
Administration directed all Deputy Commissioners and Assistant Commissioners to
complete such payment by 15th October 2005. However, the initial assessment of the
damaged area was found to be incorrect and a complete re-assessment/ re-survey was
demanded by the Tribal Council. Accordingly, the Administration constituted 17
teams in November 2005 for complete re-survey and re-assessment of the damage to

plantation crops in the Nicobar District, which was to be completed within ten days.
It was observed that:i.

The re-survey and re-assessment was completed only on 28.12.2005 but no

payments have been made till date.

ii.

In Car Nicobar alone, though the number of beneficiaries has increased from
2334 to 2378 but the assessed damaged area decreased from 2589.109
hectares to 969.35 hectares on reassessment. The wide variation between the
initial assessment and the fresh assessment shows that the initial assessment
was purely on ad- hoc basis which is also evident from the facts stated
below:In eleven villages of Nicobar District, all the affected farmers
were paid the same amounts as compensation towards land loss, crop
loss, and reclamation ex-gratia.
During the initial assessment, the compensation for crop loss was
calculated assuming 175 coconut trees constitute one hectare without
actual survey and the payments were made accordingly.

d. Test-check of the Acquittance Rolls of ex-gratia/ compensation payments made in by

the O/o the Deputy Commissioner, Nicobar District revealed the following
irregularities/ shortcomings:i.

The acquittance rolls were not certified after disbursement.

ii.

The thumb impressions of the payees were not attested/ identified by any
authorised officer.

iii.

Neither the initials of the payees were dated nor the date of payment of the
cheques indicated in the acquittance rolls.

iv.

Some of the cheques are shown as sent to Port Blair as the legal heir had
been evacuated/ migrated to Port Blair. However, confirmation in respect
of disbursements of these cheques was not available in the records.

e.

Ex-gratia payments were found to have been sanctioned/ paid to

persons other than the legal heir. A few such cases are given below as illustrative
examples:
i.

It was seen from Special Relief Officer, Katchals letter dated 05.05.2005
that in eight cases the legal heir had not been correctly identified.

ii.

Assistant Commissioner, Great Nicobars Letter dated 11.03.2005 revealed

that payments for Rs. 1,71,86,000/- released towards gratuitous relief to 1332

beneficiaries was withheld due to objections from general public and the
correct beneficiaries had to be identified afresh.
g. As evident from Newspaper Reports and postings on the BBCs Website, some
beneficiaries were paid paltry sums as ex-gratia. Two examples are given below:i. Charity Champion of Nicobar was paid Rs. 2/- by cheque.
ii. Daniel Yunus of Malacca, Car Nicobar received ex-gratia for Rs. 41/-.
h. It was seen from Assistant Commissioner, Kamortas fax message dated 20.03.2005
that disbursal of ex-gratia payments in the Nancowry group of islands were delayed
due to non-posting of a Pay and Accounts Officer.
Thus, the following conclusions may be arrived from the facts mentioned above:a) Assessment of damage and identification of beneficiaries was not done in a
proper manner resulting in incorrect assessment of losses suffered and
incorrect identification of beneficiaries.
b) Compensation paid for agricultural losses was mainly on ad-hoc basis and
not on actual survey/assessment. The initial assessment of land/ crop loss
was incorrect resulting in re-survey/ re-assessment, which could be
completed only on 28.12.2005. As a result, enhanced agricultural loss
compensation has not been paid to any beneficiary till date.
c)

Procedure for assessment of crop/ land loss in Tribal areas in absence of

Revenue records and identification of next of kin on the Tuhet system
basis does not have approval of the Government of India.

d)

Cheques for paltry sums were issued to some beneficiaries.

e)

Payment of ex-gratia was delayed due to non-posting of PAO to sign the

cheques.

f)

The ex-gratia payments have not been made to all the beneficiaries despite
a lapse of one year since the Tsunami.

g)

As the payments made to illiterates on the basis of thumb impressions were

not attested/ authenticated and the acquittances were not certified by any
authority, it could not be vouchsafed that the actual beneficiaries had
received the amounts due to them.

h) Ex-gratia payment was paid to the beneficiaries in cash though the same
was required to be paid to the beneficiaries by cheques.

3.5.2

The Andaman and Nicobar Land Regulation Act specifies that all land vests in Government and
purchasers of land are termed as licencees/tenants. Further, in Nicobar District, except for
Campbell Bay, there are no revenue records and the area is tribal land where under the tribal
customs lands are the property of Tuhets (extended joint families in Nicobar) and not of
individuals. Thus, loss of land in Tsunami disaster was technically the loss of the UT Government
in areas where revenue records are available and of Tuhets in tribal areas. But, as per the
formulated norms, loss of land in Tsunami disaster was compensated to individuals both in
Andaman and Nicobar districts. The norms, however, compensated for only the loss of
agricultural land but no norms were formulated for compensation of loss of non-agricultural land.

3.5.3

With a view to provide employment to a dependent family member of the employees of the A&N
Administration who had either died or were missing in the Tsunami disaster, the Administration
took up the matter with the Ministry of Home Affairs (MHA) in April 2005 stating that the
existing prescribed ceiling of 5 per cent for compassionate appointment was not adequate to
provide employment to the dependent family members of 233 employees who had either died or
were missing. It was therefore proposed by the Administration to consider relaxation of the limit
of 5 per cent. In reply, the MHA stated in June 2005 that the proposal to relax the ceiling of 5 per
cent had been taken up with the Department of Personnel & Training (DoPT) who did not accept
the recommendation. In order to take up the matter again with DoPT, the MHA called for certain
information from the Administration and subsequently in December 2005, directed the
Administration to frame a draft scheme and send the same for approval of the MHA. Accordingly,
a draft scheme for compassionate appointment to dependents of government servants who had
lost their lives/ gone missing in Tsunami in A&N Islands on 26.12.2004 was furnished by the
Administration to the MHA on 27.12.2005; approval to which is still awaited. However, in the
meantime the Administration had already started providing compassionate appointment with the
approval of the Honble Lieutenant Governor to the dependents of Tsunami victims based on the
proposed draft scheme. In one such case, compassionate appointment was given in October 2005
to a dependent of a Government servant who had gone missing in the Tsunami although Para 11
of the existing scheme for compassionate appointment prescribes a lapse of at least two years
from the date on which the government servant had been missing before considering a request to
grant the benefit of compassionate appointment to his dependent.
Compassionate appointments under the proposed scheme should be stopped till approval
of the Government of India to the scheme is accorded. The matter may also be taken up with the
Government of India for expediting its approval. Any compassionate appointments already made

under the proposed scheme should also be regularised with the approval of the Government of
India.
In view of the above, audit recommends that:a) The approval of the Government of India for identification of tribal beneficiaries on the basis
of Tuhet system may be obtained to regularise the payments made in deviation of the
approved guidelines. In other cases, the system of identification of beneficiaries should be
made foolproof after taking into account all the prescribed/ specified norms in order to
ensure that the genuine beneficiaries are not left out and irregular payments made to the
ineligible persons may be recovered.
b) Approval of the Government of India should be obtained for the methodology adopted for
assessment of crop/land loss in tribal areas.
c) Ex-gratia payment/compensation is made by cheques only to ensure transparency in
distribution of gratuitous relief amounts
d) All payments made through Acquittance Rolls including payments made on the basis of
thumb impressions should be certified by an authorised officer so as to authenticate such
payments
e) Action may be taken to re-issue all the time-barred cheques and to issue the undisbursed
cheques to the concerned persons and to ensure that all eligible beneficiaries are paid exgratia/ compensation/ enhanced agricultural compensation without any further delay .
f)

Payment of compensation for land loss to individuals in ANI should be regularised, if

necessary, either by suitably amending the Andaman and Nicobar Islands Land Regulation
Act and/ or the relevant sanction orders. Norms may also be formulated for compensation of
loss of non-agricultural land.

g) Compassionate appointments under the proposed scheme should be stopped till approval of
the Government of India to the scheme is accorded. The matter may also be taken up with the
Government of India for expediting its approval. Any compassionate appointments already
made under the proposed scheme should also be regularised with the approval of the
Government of India.
3.6 Lessons learnt and experience gained from earlier disasters.
The A&N Administration (Administration) received instructions/ guidelines from the National
Disaster Management Division, Ministry of Home Affairs as well as other states which were affected by
natural calamities regarding the experience gained in disaster management. These inputs were

incorporated by the Administration in the Disaster Management Plan (DMP) while formulating policies
on disaster management, but the DMP is yet to be approved by the Government of India.
Audit, therefore, recommends that action may be taken for the finalisation of DMP at an
early date.
3.7 Monitoring of Relief, Rehabilitation and Reconstruction Activities
3.7.1

The MHA and MOF had circulated a proforma to all the States and UTs in March 2003 to furnish
the expenditure details on a quarterly basis and an Annual Report on natural calamities. In
addition to the above, daily and weekly reports were being sent to the MHA on the relief and
rehabilitation activities in the post Tsunami period. In July 2005, the MHA directed the
Administration to discontinue the daily reports but to keep sending the weekly reports. However,
it is seen that none of the above-mentioned reports i.e., weekly, quarterly or annual reports are
being prepared or sent to the MHA after July 2005.

3.7.2

Relief and Rehabilitation measures were initially monitored under the guidance of IRC through
Control Rooms setup in the offices of the Deputy Commissioners of both the Districts. However,
no Monitoring Cell has been constituted to monitor the ongoing relief, rehabilitation and
reconstruction activities.

Audit therefore recommends the following:i.

All the prescribed periodical returns to the MHA and Government of India may be
sent timely.

ii.

An effective Monitoring mechanism may be instituted to assess the physical and

financial progress of the implementation of the various activities and to coordinate
between the various implementing agencies in order to increase the efficacy of the
relief, rehabilitation and reconstruction measures.

3.8 Acknowledgement
Audit would like to place on record its appreciation to the full co-operation extended to them by
the officers and staff of all the departments of the Andaman and Nicobar Administration during the
course of the Performance Audit Review on Tsunami Relief, Rehabilitation and Reconstruction,

particularly the Secretary (Finance) & Relief Commissioner and the Deputy Secretary (Relief and
Rehabilitation) who interacted with audit as Nodal Officer and Link Officer respectively.

Annexure-I
Details of Funds allotted, utilised and surrendered by various departments of Andaman
and Nicobar Administration during the year 2005-06
(Rs in Lakh)
Sl No

Name of the Department

Amount
Allotted in BE
1
2
3
4
5
6
7
8
9

10
11
12
13
14
15
16
17
18
19
20
21
22

Electricity Department
Civil Supplies
Port Management Board
Directorate
of
Rural
Development &LSG
Directorate of Shipping
Services
Inspector General of Police
Andaman Public Works
Department
Fisheries Department
Directorate
of
Social
Welfare
Directorate of Transport
Assistant
Secretary
(Personnel), Port Blair
Directorate of Industries,
Port Blair
District Administration*
Directorate of Education
Directorate
of
Health
Services
Forest Department
Directorate of AH&VS
Directorate of Agriculture
Directorate
of
Tribal
Welfare
Municipal Council
Information, Publicity &
Tourism, Port Blair
MHA**
TOTAL

4201.00
1500.00
3000.00
1225.00

2005-06
Percentage
of
expenditure
to allotment
414.74
9.87
335.47
22.36
2714.72
90.49
1000.00
81.63

Expenditure
(upto
31.10.2005)

Amount
surrendered/proposed
to be surrendered

3375.00

219.75

6.51

475.00

600.00
13676.00

57.92
6391.76

9.65
46.74

1935.00
450.00

171.56
0.00

8.87
0.00

700.00
140.00

17.08
56.14

2.44
40.10

230.00

0.00

0.00

210.00(P)*
10528.00(NP)
472.00
750.00

57.22(P)*
2076.17(NP)
4.98
361.86

27.25*
19.72
1.06
48.25

372.00
2393.00
9586.00
200.00

37.76
3.13
70.86
0.00

10.15
0.13
0.74
0.00

231.00
1393.00
4500.00

700.00
450.00

0.00
0.00

0.00
0.00

140.00

955.00
210.00(P)
57438.00(NP)

955.00
57.22(P)
14888.90(NP)

27.25(P)
25.92(NP)

665.00

100.00

7504.00

* denotes the figures pertaining to DC (Andaman), DC (Nicobar) and expenditure booked by

PAO (Rangat) & PAO (Car Nicobar)
** Denotes amount transferred by Directorate of Accounts & Budget, Andaman and Nicobar
Islands to Ministry of Home Affairs for purchase of relief materials.

Annexure-II
Details of Departmental advances drawn by various departments of Andaman and
Nicobar Administration from Major Head 2245
Sl
No
1
2
3
4
5
6
7
8

9
10
11
12
13

Name of the Order/

Purpose of Advance
Department
Bill
No.
and Date
Year 2004-05
Deputy
Order no. Expenditure in connection
Commissioner
1064 dated with relief works
(Andaman)
28.12.2004
Deputy
Order no. Expenditure in connection
Commissioner
1161 dated with relief works at
(Andaman)
14.01.2005 Nancowry
Deputy
Order no. Expenditure in connection
Commissioner
05 dated with relief works
(Andaman)
20.01.2005
Deputy
Order no. Expenditure in connection
Commissioner
131 dated with relief works
(Andaman)
23.02.05
Directorate of Order no. Assistance to fishermen
Fisheries
1281 dated
29.03.2005
Directorate of Order no. Assistance to fishermen
Fisheries
1282 dated
29.03.2005
Assistant
Order no. Compensation for severely
Commissioner
219 dated and marginally damaged
(Settlement)
14.03.2005 houses
Deputy
Order no. Expenditure in connection
Commissioner
93 dated with airlifting of patient
(Nicobar)
15.02.05
and attendant by IAF
Courier
Deputy
Order no. Expenditure in connection
Commissioner
96 dated with relief works at
(Nicobar)
17.02.05
Campbell Bay
Deputy
Order no. Expenditure in connection
Commissioner
99 dated with relief works at
(Nicobar)
18.02.05
Katchal
Deputy
Order no. Expenditure in connection
Commissioner
100 dated with relief works at
(Nicobar)
18.02.05
Teressa
Deputy
Order no. Expenditure in connection
Commissioner
101 dated with relief works at
(Nicobar)
18.02.05
Nancowry
Directorate of Bill
no. Purchase of 2000 bicycles
Civil Supplies 1350 dated from M/s TI Cycles,
and Consumer 16.02.2005 Chennai
Affairs

Whether
Amount
of
Plan
or Advance (Rs)
Non Plan
Plan

15,00,000/-

Non-Plan

10,00,000/-

Non-Plan

15,00,000/-

Non-Plan

10,00,000/-

Non-Plan

76,40,000/-

Non-Plan

93,90,000/-

Non-Plan

92,40,000/-

Non-Plan

5,200/-

Non-Plan

10,00,000/-

Non-Plan

10,00,000/-

Non-Plan

10,00,000/-

Non-Plan

10,00,000/
-

Non-Plan

33,22,000/-

14

15

16

Directorate of
Civil Supplies
and Consumer
Affairs
Directorate of
Civil Supplies
and Consumer
Affairs
Directorate of
Civil Supplies
and Consumer
Affairs

Bill
no.
Bill
no.
1495 dated
18.03.2005
Bill
no.
1580 dated
31.03.2005

Purchase of vegetables Non-Plan

from ANIIDCO

50,00,000/-

Procurement of rice from Non-Plan

FCI

4,00,00,000/-

Bill
no. Purchase
of
LPG Non-Plan
1595 dated Cylinders from IOC
31.03.2005

58,29,200/-

Deputy
Commissioner
(Andaman)

Order no.
734 dated
22.07.2005

Deputy
Commissioner
(Andaman)
Directorate of
Fisheries

Order no.
3481 dated
09.08.2005
Order no.
2364 dated
06.06.2005
Order no.
2827 dated
01.07.2005
Order no.
2926 dated
06.07.2005
Order no.
4394 dated
21.10.2005
Order no.
605 dated
24.06.2005
Order no.
606 dated
24.06.2005
Bill
no.
261 dated
09.05.2005

3
4

Directorate
Fisheries

of

Directorate
Fisheries

of

Directorate
Fisheries

of

Assistant
Commissioner
(Settlement)
Assistant
Commissioner
(Settlement)
Directorate of
Civil Supplies
and Consumer
Affairs
Directorate of
Civil Supplies
and Consumer
Affairs
Directorate of
Civil Supplies
and Consumer
Affairs

8
9

10

11

TOTAL
Year 2005-06
Expenditure in connection Plan
with
Workshop
on
Earthquake
Risk
Management
Construction
of Plan
Emergency
Operation
Centre at Port Blair
Assistance to fishermen
Non-Plan

8,94,26,400/50,000/-

52,82,000/55,00,000/-

Assistance to fishermen

Non-Plan

2,34,000/-

Assistance to fishermen

Non-Plan

9,98,000/-

Assistance to fishermen

Non-Plan

1,00,00,000/-

Assistance for loss of

agricultural land

Non-Plan

21,99,911/-

Assistance for loss of

agricultural land

Non-Plan

62,64,233/-

Purchase
of
LPG Non-Plan
Cylinders from IOC

18,74,487/-

Bill
no. Payment of handling and Non-Plan
474 dated loading
charges
to
21.06.2005 Controller,
Andaman
Labour Force
Bill
no. LPG
Connections
to Non-Plan
723 dated Tsunami victims
29.07.2005

18,00,000/-

6,29,000/-

12
13

Directorate of Order no.

Social Welfare
43 dated
16.01.2006
Electricity
Order no.
Department
3545 dated
12.08.2005

14

Electricity
Department

15

Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board
Port
Management
Board

Order no.
3723 dated
29.08.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4027 dated
22.09.2005
Order no.
4343 dated
18.10.2005
Order no.
4343 dated
18.10.2005

Port
Management
Board
Port
Management
Board
Port
Management
Board

Order no.
4343 dated
18.10.2005
Order no.
4343 dated
18.10.2005
Order no.
4272 dated
11.10.2005

16
17
18
19
20
21
22
23

24
25
24

Payment to ANIIDCO for

construction of ICDS
Centres
Payment to ALHW for
special repairs to damaged
electricity
transmission
platform no. I and II
located near Viper Island
Procurement of 145 MT of
steel
material
from
ANIIDCO
Payment to ALHW for
special repairs to wharfs at
Hope Town
Payment to ALHW for
raising berthing jetty at
Panighat
Payment to ALHW for
raising RCC Jetty at
Mithakhari
Payment to ALHW for
raising of berthing jetty at
Hathi Tapu
Payment to ALHW for
raising of berthing jetty at
Viper Island
Payment to ALHW for
renovation work at Chain
Nallah
Payment to ALHW for
making
approach
to
berthing wharf at Hut Bay
Payment to ALHW for
construction of passenger
hall at Haddo wharf
Payment to ALHW for
special repairs to damaged
Container Stacking Yard at
Haddo
Payment to ALHW for
reconstruction of approach
jetty at Campbell Bay
Payment to ALHW for
construction
work
at
Dundas Point
Payment to ALHW for
raising jetty and approach
for
Champin
Jetty,
Nancowry

Non-Plan

95,00,000/-

Non-Plan

20,18,000/-

Non-Plan

47,26,130/-

Non-Plan

44,43,000/-

Non-Plan

86,18,000/-

Non-Plan

33,22,000/-

Non-Plan

56,65,000/-

Non-Plan

34,93,000/-

Non-Plan

11,79,000/-

Non-Plan

86,14,000/-

Non-Plan

8,28,28,000/-

Non-Plan

4,91,78,000/-

Non-Plan

3,89,69,000/-

Non-Plan

1,19,70,000/-

Non-Plan

1,13,66,000/-

25

Port
Management
Board

26

Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services
Directorate
Shipping
Services

27
28
29
30
31
32
33
34
35
36
37
38

of
of
of
of
of
of
of
of
of
of
of
of
of

Order no. Payment to ALHW

4350 dated rehabilitation
19.10.2005 construction
work
Kamorta
4438 dated Payment to ALHW
post Tsunami repair
26.10.2005
rehabilitation measure
4808 dated Payment to ALHW
post Tsunami repair
23.11.2005
rehabilitation measure
4838 dated Payment to ALHW
post Tsunami repair
28.11.2005
rehabilitation measure
4838 dated Payment to ALHW
28.11.2005 post Tsunami repair
rehabilitation measure
4838 dated Payment to ALHW
28.11.2005 post Tsunami repair
rehabilitation measure
4916 dated Payment to ALHW
post Tsunami repair
01.12.2005
rehabilitation measure
4914 dated Payment to ALHW
post Tsunami repair
01.12.2005
rehabilitation measure
15 dated Payment to ALHW
post Tsunami repair
02.01.2006
rehabilitation measure
3349 dated Payment to ALHW
post Tsunami repair
08.08.2005
rehabilitation measure
4439 dated Payment to ALHW
post Tsunami repair
26.10.2005
rehabilitation measure
4997 dated Payment to ALHW
post Tsunami repair
05.12.2005
rehabilitation measure
16 dated Payment to ALHW
post Tsunami repair
02.01.2006
rehabilitation measure
17 dated Payment to ALHW
post Tsunami repair
02.01.2006
rehabilitation measure

for Non-Plan
and
at

3,47,27,000/-

for Non-Plan
and

1,38,07,000/-

for Non-Plan
and

34,62,000/-

for Non-Plan
and

15,33,000/-

for Non-Plan
and

78,23,000/-

for Non-Plan
and

3,36,000/-

for Non-Plan
and

44,65,000/-

for Non-Plan
and

5,34,000/-

for Non-Plan
and

2,06,00,000/-

for Non-Plan
and

90,00,000/-

for Non-Plan
and

30,70,000/-

for Non-Plan
and

32,80,000/-

for Non-Plan
and

5,99,37,000/-

for Non-Plan
and

82,70,000/-

TOTAL
GRAND TOTAL

45,15,64,761/54,09,91,161/-

Annexure-III
Details of Bank accounts operated by various departments of Andaman and Nicobar
Administration for crediting relief funds
Sl. No.

1.

Name of the Department

Deputy

Commissioner,

Andaman

2.

3.

Directorate of Fisheries

Assistant

Commissioner

(Settlement)
4.

Assistant

Commissioner

(Settlement)
5.

Assistant

Commissioner

(Settlement)
6.

Assistant

Assistant

Source from

Amount

Account Number

which funds were

credited to the

State

Bank

of

India,

Commissioner

Commissioner

Nancowry

Aberdeen Bazar. Current

advance from MH-

Account

2245

No.

01090/050533
State Bank of India, Port

Departmental

Blair. Current

advance from MH-

Account

No. 01090/050533
Syndicate Bank,

Deputy

2245
Departmental
advance from MH-

99003070000038
Syndicate Bank,

2245
Departmental

Port

account (Rs)
40,00,000/-

3,37,62,000/-

92,40,000/-

84,64,144/-

Blair. Current account No.

advance from MH-

99003070000019
Syndicate Bank,

2245
LGs Relief Fund

45,80,000/-

Departmental

20,00,000/-

Port

99003070000019
State Bank of

India,

Nancowry. Savings Bank

advance from MH-

Account

2245

01190050097
State Bank of

No.
India,

LGs Relief Fund

52,00,000/-

01190050095
State Bank of India, Car

Departmental

50,00,000/-

Nicobar. Current Account

advance from MH-

No. 01000/050140

2245

State Cooperative Bank,

MH 2245

12,00,000/-

LGs Relief Fund

17,89,330/-

Nancowry. Savings Bank

Commissioner,

Car

Nicobar

9.

Port

Blair. Current account No.

Account
8.

taken
Departmental

Blair. Current account No.

Nancowry

7.

Name of the Bank and

Assistant

Commissioner,

Campbell Bay

No.

Campbell Bay. Savings

Bank Account No. SB

10.

Assistant
Campbell Bay

Commissioner,

5945
Syndicate

Bank,

Campbell Bay. Current

11.

Assistant

Commissioner,

Campbell Bay
12.

Assistant

Account No. CA - 358

Syndicate
Bank,

Commissioner,

Account No. CA - 28
State Bank of India,

MH-2245 and LGs

Mayabunder.

Relief Fund

Account
Tehsildar, Mayabunder

01000050148
State Bank of
Mayabunder.
Account

14.

15.

71,00,000/-

Campbell Bay. Current

Mayabunder

13.

MH-2245

Tehsildar, Rangat

Tehsildar, Diglipur

01000050149
State Bank of

Current

5,05,73,870/-

No.
India,
Current

MH-2245 and LGs

1,02,15,751/-

Relief Fund

No.
India,

MH-2245 and LGs

Rangat. Current Account

Relief Fund

No. 01000050181
State Bank of

MH-2245 and LGs

India,

Diglipur. Current Account

1,59,15,640/-

2,69,50,456/-

Relief Fund

No. 01000050122
Total

18,59,91,191

Annexure-IV
Details of Expenditure incurred by APWD under MH 2245 for the year 2005-06 (upto December 2005)
(Rs in thousand)
NAME OF
THE
DIVISION

SUB HEAD
02.102- Drinking
02.106- Repairs & 02.107- Repair &
02.108- Repair &
Temporary Shelter
Water Supply 01Restoration of
Restoration of
restoration of
80.800- Other
Natural Calamities
damages road and
damaged Govt.
damaged Govt.
Expenditure 0101.00.27- Minor
Bridges 01- Natural office building 01- Residential building Natural Calamities
Works
Calamities 01.00.27- Natural Calamities 01-Natural Calamities 01.00.27- Minor
Minor Works
01.00.27- Minor 01.00.2- Minor Works
Works
Works

Amount
of Fund
SE (Plg)
ISSD
SD
CD,D/PUR
CD-I.RGT
NACD
E&M/RGT
SE,PBCC
PBN
D
SAD
PBSD
WSD
PHE
D
SE, Nicobar
CD,CN
CD,CB
CD,Kamorta

TOTAL

Expendit Amount
ure
of Fund

Expendit Amount
ure
of Fund

Expen Amount of Expendi Amount Expendit Amount Expendi

diture Fund
ture
of Fund ure
of Fund ture

25700
182244

25371
111929

4500
8000
15000
5000
200

4399
2347
4556
1230
64

45000
12200
13000
7700

44447
13921
9497
5108

10000
13700
20000
5000

0
6426
1800
1604

60000
8600
12500
10000
200

0
400
797
181
0

5000

144

1600

620

13800

16072

20900

22926

10000

6300
963

18000
500

17273
0

14000
1500

11784
0

2700
60000

2269
62400

19311
101094
4036

7000
1000
4000

3669
0
5243

10000
5000
5000

9268
0
0

55000
20000
8700

54302
17901
7060

450
5000

0
2501

5000
2500
15000

5220
82
540

20000
105000
9000

02.101 Flood & Amount of Expenditure

Cyclones Etc 01Fund
Natural
Calamities
01.00.27- Minor
Works

7000

16000

2134

10000

1350

TOTAL

TOTAL

25700
301744
49500
60500
27700
400

25371
160775
23094
16650
8123
64

41300

39762

26000
34700
62450
5000

8434
31326
63363
2501

97000
1350
41700

91770
120427
16879

SE,CCI
CD-I, PB
CD-II
RCD
MID
HPD
CD-III
F.O To C.E

4000
5000

836
4619

174350

TOTAL

250000

26634

1000

96

6500

5564

20000
10000

30579
6326

40000

37994

300000

285760

2400

9622

14400

2735

30100

139900

64444

3000
700
10000
10000
236
764
172400

1951
0
262
2754
236
201
50760

14000
1000
60000
6156

9654
0
47975
6156

58100

493600

345017

4000

14000
5000

0
1696

18000

15349

74000

20529

16900
14700
49000
104400
6392
58764
262550

17233
9654
31677
66105
6392
53544
0

1287750

793144

Annexure V
Details of ex-gratia payments made in respect of Andaman District upto October 2005
Sl.

TYPE OF EX-GRATIA

No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Identified Dead
@ Rs 1,00,000/Missing persons
@ Rs 1,00,000/Serious Injury
@ Rs 5,000/Immediate Relief from LG
Relief Fund
@Rs 2,000/Loss of Household Articles
@ Rs 10,000/Temporary Relief
@ Rs 3,000/Relief to small business in
residential premises
Relief to small business in
non-residential premises
Agriculture/plantation crop
loss
Reclamation of land
Submerged Land
Orphans below 18 years
@ Rs 2,00,000/Widows
@ Rs 1,00,000/Unmarried girls above 18
years
@ Rs 1,00,000/Fully damaged
house
(Pucca) @ Rs 10,000/Fully damaged
house
(Katcha) @ Rs 6,000/Severely and marginally
damaged houses
TOTAL

Sanctioned
No.
Amount
41
41,00,000

Andaman District
Disbursed
No.
Amount
40
40,00,000

No.
1

Balance
Amount
1,00,000

14

14,00,000

12

12,00,000

2,00,000

21

1,05,000

16

80,000

25,000
6,000/-

9181

1,83,62,000

9178

1,83,56,000

3139

3,13,90,000

2620

2,62,00,000

519

51,90,000

3139

94,17,000

2620

78,60,000

519

15,57,000

718

85,76,006

628

48,05,906

90

37,70,100

1592

67,80,695

968

57,84,295

624

9,96,400

2415

31,94,433

2032

28,49,533

383

3,44,900

1638
1140
2

75,01,130
85,24,544
4,00,000

1501
234
2

66,12,715
20,55,726
4,00,000

137
906
0

8,88,415
64,68,818
0

18

18,00,000

16

16,00,000

2,00,000

2,00,000

2,00,000

697

69,70,000

12

1,20,000

685

68,50,000

419

25,14,000

178

10,68,000

241

14,46,000

39829

7,96,58,000

22398

4,47,96,000

17431

3,48,62,000

64,005

19,08,92,808

42,457

12,79,88,175

21,548

6,29,04,633

Annexure-VI
Details of Time- barred cheques
Sl. No.
1
2
3
4

Area to which the cheques relate

Relief Camps
Ferrargunj
Port Blair
Little Andaman
TOTAL

Number of cheques
33
77
55
337
502

Amount (in Rs)

4,29,000/2,51,163/3,50,901/44,16,000/54,47,064/-

Annexure -VII
Details of cases sanctioned for which cheques are yet to be issued relating to enhanced
compensation to farmers
Sl. No.

Sanction Order No. and date

No.
of
sanctioned

1
2
3
4
5
6
7

1203 dated 05.11.05

1201 dated 03.11.2005
1246 dated 18.11.2005
1275 dated 24.11.2005
1295 dated 29.11.2005
1274 dated 24.11.2005
125 dated 18.11.2005
TOTAL

912
66
117
233
164
410
633
2535

cases Total Amount for

which the cheques
have not been issued
64,78,179/67,38,195/34,82,897/7,32,663/5,93,240/53,40,039/1,90,36,800/4,24,02,013/-

Annexure -VIII
Details of cases sanctioned for which cheques are yet to be issued relating to Ex-gratia and Housing
Compensation
Sl.
No.

Sanction Order No. No. of cases Nature of claim

and date
sanctioned

1
2
3

842 dated 22.08.2005

841 dated 22.08.2005
869 dated 26.08.2005

48
10
2358

764 dated 03.08.2005

8991

763 dated 03.08.2005

5888

TOTAL

17,295

Ex-gratia
Ex-gratia
Housing
compensation
Housing
compensation
Housing
compensation

Total Amount for

which the cheque have
not been issued
6,24,000/1,30,000/1,35,04,000/1,81,54,000/1,21,72,000/4,45,84,000/-

Annexure IX
Details of ex-gratia payments made in respect of Nicobar District upto December 2005
Sl.
No.

1
2
3
4

5
6
7
8
9
10
11
12
13
14

TYPE
GRATIA

OF

EXSanctioned
No.
Amount

Nicobar District
Disbursed
No.
Amount

Identified Dead
376
3,76,00,000 371
3,71,00,000
@ Rs 1,00,000/Missing persons
2516 25,16,00,000 2489 24,89,00,000
@ Rs 1,00,000/Serious Injury
86
4,30,000
74
3,70,000
@ Rs 5,000/Immediate
Relief 8892
1,77,84,000 8749
1,74,98,000
from LG Relief
Fund
@Rs 2,000/Loss of Household 11099 11,09,90,000 10713 10,71,30,000
Articles
@ Rs 10,000/Temporary Relief
11099 3,32,97,000 10713 3,21,39,000
@ Rs 3,000/Relief to small 302
30,20,000 289
28,90,000
business
in
residential premises
Relief to small 211
21,10,000 208
20,80,000
business in nonresidential premises
Orphans below 18 142
2,84,00,000 136
2,72,00,000
years
@ Rs 2,00,000/Widows
168
1,68,00,000 164
1,64,00,000
@ Rs 1,00,000/Unmarried
girls
33
33,00,000
33
33,00,000
above 18 years
@ Rs 1,00,000/Fully
damaged
0
0
0
0
house (Pucca) @ Rs
10,000/Fully
damaged
0
0
0
0
house (Katcha) @
Rs 6,000/Severely
and
0
0
0
0
marginally damaged
houses
TOTAL
34924 50,53,31,000 33939 49,50,07,000

No.

Balance
Amount

5,00,000

27

27,00,000

12

60,000

143

2,86,000/-

386

38,60,000

386

11,58,000

13

1,30,000

30,000

12,00,000

4,00,000

985 1,03,24,000