CAG Criticizes Kerala Forest Department for Inaction on License Fee Review for Land Leased to Tamil Nadu in Parambikulam-Aliyar Project

According to a recent report from the Comptroller and Auditor General (CAG), the non-implementation of revised licensing fees in Tamil Nadu has resulted in a significant revenue shortfall of ₹1.14 crore for the time period spanning from 2012-13 to 2023-24. This shortfall has been assessed for a land extent of 2,455.23 hectares. Additionally, the report indicates that there is an interest liability of ₹56 lakh, which has been calculated at an annual interest rate of 12%.

The CAG report highlights the importance of timely adjustments to licensing fees to reflect changes in economic conditions and land use. It underscores the financial implications of such delays, not only in terms of immediate revenue losses but also in accruing interest liabilities over the years.

The state government may need to review its licensing protocols to prevent similar future shortfalls and ensure that revenue collections align with current market conditions. This situation prompts discussions regarding fiscal accountability and the management of state assets, which are crucial given the ongoing economic challenges faced by various sectors in Tamil Nadu.