GUWAHATI: A recent audit report by the Comptroller and Auditor General (CAG) has exposed glaring inefficiencies and financial mismanagement in the Tech City project undertaken by the Assam Electronics Development Corporation Limited (AMTRON). The findings reveal poor planning, financial mismanagement, and an overall failure to meet project objectives, resulting in significant losses and delays.
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The Tech City project, initiated in 2017-18 with an estimated cost of ₹607.21 crore, was envisioned as a major IT and electronics hub. However, as per the CAG report, which audited the period from 2017-18 to 2022-23, despite over five years of implementation, the project remains incomplete, with only ₹175.57 crore utilised so far. The failure to tie up funding sources and the absence of a concrete completion timeline have severely hampered progress.
One of the most alarming revelations in the report is the financial burden placed on AMTRON due to poor project execution. The company obtained a ₹100 crore loan from the Bank of Maharashtra but failed to secure the necessary government guarantees. This resulted in the imposition of ₹2.81 crore in penal interest, further exacerbating financial woes. Despite this, the project remains stalled with no clear roadmap for completion.
The audit also highlights the company’s poor strategic planning, citing its decision to expand the project scope without ensuring sufficient funds. A revised project plan, which included the development of an IT park and an Electronic Manufacturing Cluster (EMC), significantly increased financial requirements. However, due to the inability to meet project conditions, the Government of India withheld ₹25 crore in funding, further stalling progress.
Beyond financial mismanagement, the report points to severe inefficiencies in project execution. Infrastructure remains incomplete, with key facilities like Common Facility Centre buildings and IT park structures lying unfinished. The failure to attract electronics and IT companies to the project has rendered the investment largely unproductive, blocking funds amounting to ₹175.57 crore.
In response to the report, AMTRON attributed the delays to insufficient budgetary support from the government, stringent banking norms, and external disruptions such as the COVID-19 pandemic. However, the CAG dismissed these justifications, emphasising that the company lacked a strategic plan and a concrete approach to completing the project in a timely manner.
Experts and industry observers have expressed concerns over the ramifications of this mismanagement. The Tech City project was envisioned as a critical step in boosting Assam’s IT and electronics industry, yet its failure raises questions about government oversight and accountability in handling large-scale infrastructure projects.
With mounting financial losses and no clear resolution in sight, stakeholders are now calling for urgent government intervention. The CAG has recommended a reassessment of the project, better financial planning, and stringent monitoring mechanisms to prevent further deterioration.
As the state grapples with the fallout of this audit, the Tech City project remains a stark example of how poor planning and financial mismanagement can derail ambitious developmental initiatives. The ball is now in the government’s court to take corrective action before the project becomes a complete loss. Though the audit was till 2022-23, it can be hoped that the situation is improved now.
