As per the Comptroller and Auditor General of India, the Karnataka textile policy 2013-18 failed to achieve its intended investment and job generation targets. The policy could not achieve the Rs 10,000-crore investment target and 5 lakh employment generation targets envisaged in it and fell short of its target by 63 per cent and 76 per cent, respectively. Additionally, the imparting of skill development training to unemployed youth was reduced from 2.96 lakh to 1.09 lakh. The CAG conducted a performance audit on the Karnataka Textile Policy 2013-18 to assess the outcomes of the initiatives and factors responsible for under performance.
The government which had planned six textile parks in the state with integrated facilities with private sector participation had not fructified. Though an amount of Rs 6.35 crore was irregularly released to an SPV in Kalaburgi, it did not fulfill the prescribed conditions.
Additionally, there was an inordinate delay in release of incentives and subsidy amount to beneficiary units, which affected their cash flow. Incentives/subsidies to one super-mega project were sanctioned by exceeding the admissible limit under the textile policy on extraneous grounds caused extra financial implications of Rs 315 crore. Rs 84.53 crore released for the implementation of various schemes was retained in the bank for period ranging from two to five years without utilisation.
