GUWAHATI: The Comptroller and Auditor General (CAG) of India’s recent audit of Assam Electronics Development Corporation Limited (AMTRON) has uncovered glaring lapses in strategic planning, financial management, and project execution. The report paints a picture of a public sector enterprise struggling with ineffective policies, project delays, and financial missteps that have severely impacted its performance.
ALSO READ: Guwahati's Tech City Project Mired In Mismanagement: CAG Report Exposes Serious Lapses
Lack of Strategic Planning
The audit revealed that AMTRON has been operating without a concrete short-term or long-term strategic plan despite the evolving Information Technology (IT) landscape and the Assam government’s IT policies. The company failed to conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to expand its business operations effectively.
Additionally, AMTRON did not implement cost-reduction strategies or measures to prevent operational losses. This lack of planning has resulted in significant revenue loss, with the company failing to capitalize on business opportunities. A prime example of this was its failure to secure the renewal of its most profitable business—printing driving licenses and registration certificates—due to an uncompetitive bid.
Tech City Project: A Case Study in Poor Management
The audit found severe mismanagement in the ambitious Tech City project, which was initiated in 2018 with a projected cost of ₹607.21 crore. The project was intended to establish an IT park and an Electronic Manufacturing Cluster (EMC). However, AMTRON neither fixed a target date for completion nor arranged adequate funding.
Despite securing an initial loan of ₹100 crore from the Bank of Maharashtra, AMTRON failed to obtain the necessary state government guarantee. As a result, the bank withheld further loan disbursements, leading to cost overruns and an additional penalty of ₹2.81 crore due to non-compliance with loan conditions.
The audit further highlighted that the project’s EMC component, which was meant to generate revenue, remained incomplete even after more than five years. This resulted in a fund blockage of ₹175.57 crore without achieving its objective.
Financial Mismanagement and Liquidity Crisis
AMTRON’s financial health has been deteriorating due to improper fund utilization and excessive reliance on external borrowings. The company received ₹280.98 crore from the government for various projects but failed to manage cash flows effectively, leading to a situation where its own funds had to be used in advance.
The audit also raised concerns over the company's ability to service its ₹100 crore loan. With an annual interest burden of ₹8.25 crore, AMTRON generated only ₹1.46 crore to ₹2.10 crore in annual revenue surplus—far below what was required to meet its financial obligations.
Deficiencies in IT and E-Governance Projects
The CAG report found significant operational inefficiencies in key IT projects under AMTRON’s control. The State Data Centre (SDC), commissioned in 2021, was meant to centralize Assam’s government data. However, the audit found that nearly 79% of the server capacity remained unutilized. Moreover, government websites and applications continued to be hosted on private data centers, raising concerns over data security.
Similarly, the e-District project, which aimed to provide online citizen services, failed to meet its objectives due to mismanagement. The audit noted that 46.49% of the 48.67 lakh service requests were delayed due to AMTRON’s failure to implement automated escalation procedures.
Lack of Monitoring and Accountability
One of the most concerning aspects of the audit was AMTRON’s failure to maintain proper oversight and monitoring mechanisms. The report highlighted that:
• Internal audits were ineffective, with major operational activities being excluded from review.
• 80% of senior management positions remained vacant, leading to ineffective project oversight.
• Annual financial reports were delayed, with accounts pending certification from 2018 onwards.
The CAG audit underscores AMTRON’s severe lack of strategic vision and operational efficiency. Without immediate corrective measures, including financial restructuring, enhanced project monitoring, and competitive business strategies, AMTRON risks further decline. The findings serve as a wake-up call for the Assam government to intervene and revamp the organization before more taxpayer money is wasted on mismanaged projects.
