New Delhi (PTI): The implementation of a scheme beyond its specified period in Andaman and Nicobar islands has caused a loss of Rs 48.69 lakhs to the government exchequer, a CAG report has said.

Implementation of the 'Island Transport Subsidy Scheme' beyond its approved period of operation without permission from the Ministry of Commerce and Industry resulted in an unauthorised expenditure of Rs 48.69 lakhs, the Comptroller and Auditor General said.

The ministry had implemented the 'Island Transport Subsidy Scheme 1995' on a three-year basis from 2000-01 to 2002-03.

The Directorate of Industries, Andaman and Nicobar Administration, was implementing the scheme which envisaged reimbursement of freight charges as transport subsidy for transportation of finished goods from the location of the unit to the port at the mainland.

Even though the scheme expired in 2002-03, the Andaman and Nicobar Administration decided to continue it beyond the stipulated period.

The administration had sought approval of the ministry for the purpose. But the ministry never gave the approval. However, the administration continued to reimburse the freight charges to industrial units beyond 2002-03.

Payment amounting to Rs 48.69 lakhs was made to these units unauthorisedly till February 2005, the CAG report said.

In view of the audit observations raised during September 2005, reimbursement of further claims amounting to Rs 30.34 lakhs were kept in abeyance, the report said.