Funds released by the Centre not utilised properly: CAG The Comptroller and Auditor General (CAG) of India has picked holes in the implementation of the Centrally-assisted solar photovoltaic project in the State during 2005-07. The project launched by the Ministry of New and Renewable Energy in January 2006 encouraged the use of solar lighting systems in rural areas to bring down the consumption of kerosene. Karnataka Renewable Energy Development Ltd. (KREDL), the implementing agency, provided the central assistance as subsidy to the suppliers of the SPV systems. In its latest report submitted to the State government, the CAG said that during 2005-07, Prolight systems, Krishi Technologies Pvt Ltd., Deepa Solar Lighting System, Hamshire Electronics and Energy Systems, Akshaya Solar Solutions Ltd, C3 Business Associates and Shell Solar supplied the SPV systems to the KREDL. However, the work orders issued to Hamshire Electronics and Energy Systems, Akshaya Solar Solutions Ltd., C3 Business Associates and Shell Solar were not available. The CAG said the suppliers had claimed that 19,066 SPV systems were installed during 2005-07 against 11,760 SPVs sanctioned by the Ministry. However, an inspection in September 2010 revealed that only 4,089 SPVs had been installed. The allowable subsidy was only Rs. 1.99 crore, but the company released Rs. 2.91 crore to suppliers. The CAG said that Rs. 3.46 crore sanctioned by the Union government for 2005-06 and 2006-07 was not utilised by the State government owing to poor implementation of the project. The Union government in April 2011 had observed that the project was not implemented properly in Karnataka and the situation did not inspire much confidence in the capacity of the REDL to implement the solar off-grid projects. Later, the Ministry asked the State government to return the funds. The CAG said that the objectives of the SPV project were defeated owing to its poor implementation. An external agency assigned by the KREDL to investigate into the lapses in its implementation found several irregularities. A sub-committee appointed by the KREDL to study the report held the then Managing Director and Assistant General Manager responsible for the negligence and dereliction of duties. Though the findings of the-sub committee were placed thrice before the board of directors of the KREDL, it was deferred till August 2011. It was launched by the Ministry of New and Renewable Energy in January 2006 ‘The implementing agency released excess funds as subsidy to suppliers'