Hyderabad: An incentive scheme called `Target-2000' which was launched in May 1996 with the aim of promoting development of industries by extending handsome incentives to promoters was widely misused, according to investigations by the Vigilance and Enforcement Department.

Vigilance officials, who dug out files relating to these incentives, have reported to the Government that they had come across startling evidence of corruption in the `Target-2000' Incentive Scheme. Among other things, the scheme proposed 20 per cent investment subsidy, holiday on sales tax and 25 per cent rebate in power bills.

Congress demands probe

The Congress Legislature Party (CLP) had recently alleged that huge sums of money were pocketed in the name of `Target-2000'. It demanded an enquiry into the malpractices as also into the reports that files relating to the corruption were suppressed by the then TDP Government.

Vigilance reports based on investigations conducted during 2000-04 show that the V & E Department unearthed large-scale malpractices that led to siphoning away of hundreds of crores of rupees. It conducted a sample verification of just 10 per cent of the 3,068 units in 23 districts which were said to have availed of whopping concessions and subsidies.

Misuse of funds to the tune of Rs. 247.68 crore were found in Visakhapatnam district alone. A random verification of 68 units in Rangareddy district revealed misappropriation of Rs.39.18 crore. The department reported a series of irregularities like disbursement of subsidies to sick, closed and sold units against the rules.

In Medak, Nalgonda and Khammam districts too, it was found out that several benami units were offered crores of rupees as subsidies and incentives, including sales tax waiver. Many of the companies used the provisions to seek exemptions from paying power bills as Rs.50 lakh exemption was offered to each of the units covered under Target-2000 scheme. Some companies changed their nameplates to avail of the benefits.

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