CAG Audit of National Dairy Plan & NDDB

Union Minister for Fisheries, Animal Husbandry & Dairying, Shri Parshottam Rupala has informed that The CAG team has communicated a draft Para on wasteful expenditure of Rs.2.74 Crore in Pilot Doorstep Artificial Insemination Delivery Services (PAIDS) sub project of Shreeja Mahila Milk Producer Company and requested point-wise clarification.

In cognizance to reply of NDDB, this Department vide letter dated 25 November 2021 has sent point-wise clarification to the Indian Audit & Accounts Department. A brief account of the point-wise reply sent is given below:

1. On CAGs point on sanctioning of project without clearly defining the area of operation between Shreeja MMPC and Andhra Pradesh Livestock Development Agency (APLDA) leading to duplication of activities, it was replied that under NDP only a pilot doorstep Artificial insemination (AI) programme was taken up in Chittor district by Shreeja Milk producer Company (SMPC). As per scientific norms, on an average2-3 times AI is required per breedable bovine for one conception; accordingly, the actual coverage by APLDA was estimated at 45% only instead of 90% claimed. The SMPC was to cover additional 24% of breedable population only on scientific basis to ensure greater conception rate and reduce dependence on Government subsidy. The pilot model which was proposed to be set up by SMPC was aimed at recovering the full charge of the AI delivery service by the end of 6 years unlike other AI Sponsored Programmes under various Government schemes and hence it did not overlap with schemes that offer subsidised AI delivery services requiring grant on a continuing basis.

2. On continuation of project implementation activities by SMPC till March 2017 despite recommendation of Regional Review (RR) meeting held in July 2016 raised by CAG, it was replied that Central Government did not request NDDB to close the project implementation. However, till the RR meeting held, out of total sanctioned amount of Rs 8.07 Cr to be utilized during 2015-16 & 2016-17, only Rs 2.74 Cr was utilised to complete the already ongoing activities in consideration of the decision made by the RR.

3.  In case of CAG comments that achievement with regard to conception rate was neither holistic nor representative as other parameters like total AI done, coverage of villages and MAIT deployed did not achieve the targeted performance; it was replied that the World Bank in its evaluation report had acknowledged that a higher conception rate was achieved. The report confirms that the quality of AI can be significantly improved and is testimony to holistic and representative conception rate.

4. CAG commented that the audit comments is not on the project as a whole and is on sub-project and World Bank report does not justify improper planning and execution of an individual project. In this regard, it was replied that for success of project, it is important to achieve Project Development Objectives (PDOs) and under NDP all the PDO level indicators were achieved.