Introduction
The Ministry of Electronics and Information Technology (MeitY) has surrendered 55% of its allocated ₹1,503.36 crore for semiconductor and display projects.
This marks a significant shortfall in utilizing funds for key initiatives. The surrender has sparked concerns about fund management and has prompted calls for better planning, monitoring, and realistic projections.
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Overview:
- MeitY surrendered 55% of ₹1,503.36 crore for semiconductor and display projects.
- Fund underutilization has been a consistent issue in the Digital India Programme.
- Funds are disbursed after claims are submitted, causing delays.
- The committee urges better planning, realistic projections, and improved monitoring.
- MeitY must streamline processes and adopt better fund management practices.
Background: Issues in Fund Utilization
The Indian government has been working to boost domestic semiconductor and display manufacturing. The goal is to reduce reliance on imports and strengthen India’s position globally. To support this, MeitY allocated ₹1,503.36 crore for semiconductor and display projects.
However, a large portion of these funds remains unutilized, raising questions about the effectiveness of planning and executing these projects.
The parliamentary committee observed a consistent trend of underutilization in several Digital India Program initiatives.
Despite the allocation of large sums, MeitY has frequently left funds unspent, delaying critical technological advancements.
Key Findings from the Parliamentary Panel
The parliamentary committee identified several issues in MeitY’s fund utilization.
1. Persistent Underutilization of Funds
The committee found that MeitY consistently underutilized funds over multiple years. This issue extends beyond semiconductor and display projects and affects other areas of the Digital India Programme as well. The repeated underutilization of funds requires immediate attention and corrective action.
2. Surrender of 55% of ₹1,503.36 Crore
MeitY surrendered more than half of the ₹1,503.36 crore allocated for semiconductor and display projects. This decision resulted in a significant loss of potential funds that could have supported the growth of India’s semiconductor industry. The surrender highlights inefficiencies in both project execution and fund monitoring.
3. Conditional Disbursement of Funds
MeitY clarified that it only releases funds for semiconductor and display projects after the implementers submit claims. This condition has slowed fund utilization. Delays in claims submission have caused further delays in releasing funds for project execution.
4. Need for Better Planning and Monitoring
The committee emphasized the need for better planning and monitoring of projects. MeitY must adopt more realistic projections to ensure funds are used effectively. The committee also pointed out that stronger oversight is crucial to prevent wastage.
5. Recommendations for Improved Fund Utilization
The committee urged MeitY to enhance its monitoring systems and improve planning processes. Better planning and more accurate projections would ensure funds are used efficiently. Additionally, MeitY should improve coordination with project implementers to accelerate fund disbursement and usage.
Importance of Semiconductor and Display Projects
Semiconductor and display manufacturing is crucial for India’s technological advancement. These sectors help reduce dependency on foreign imports and create job opportunities. The government’s push to develop these industries aims to make India more self-reliant in electronic components.
The global demand for semiconductors is rising, and India’s role in the supply chain is becoming more important. However, if funds continue to be underutilized, India’s goals in this sector will remain out of reach.
Reasons for Surrendered Funds
Several factors have contributed to the surrender of funds by MeitY. These include:
- Delays in Project Implementation: Many projects have faced delays, resulting in funds being surrendered.
- Inaccurate Projections: MeitY’s projections have often been unrealistic, leading to unspent funds.
- Ineffective Monitoring: Poor monitoring systems have hindered the efficient use of funds.
Steps to Improve Fund Utilization
To avoid further underutilization, MeitY must take action. Some suggestions include:
- Realistic Projections: MeitY should adjust its financial projections to be more accurate.
- Streamlined Claim Process: The process for submitting claims should be expedited to ensure faster fund disbursement.
- Improved Monitoring: A stronger monitoring system will help keep track of fund utilization and project progress.
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Conclusion: Need for Better Fund Management
The surrender of ₹1,503.36 crore by MeitY signals the need for better fund management.
To achieve its goals of boosting semiconductor and display manufacturing, MeitY must improve its planning and monitoring processes.
By adopting realistic projections, streamlining processes, and strengthening oversight, the Ministry can ensure better use of allocated funds in the future.
