BHOPAL, July 25: In violation of the Central Government guidelines, the Madhya Pradesh Government has allowed setting up of industries at Purena in Panna district, according to the Comptroller and Auditor General of India (CAG) report for the year ended March 31, 1996, tabled in the State Assembly on Tuesday.

The Government of India had identified in February 1987 certain districts which were considered as ``totally protected'' and also prepared a list of industries which could be set up in such districts. The idea was to ensure that ecologically fragile regions in the country were protected from adverse effects of industries which emit harmful effluents. The protected districts thus identified included Panna (except the middle region).

The CAG report says that a number of industries, other than those permitted in the protected districts, were allowed to be established in Purena. Moreover, subsidy amounting to Rs 58.27 lakh was also paid to these industries between September 1987 and January 1996. ``As the establishment of the industries was not permissible, the payment of subsidy was irregular.'' The report also points out the Government's failure to recover investment subsidy from defaulting industrial units. Rules for capital investment subsidy stipulate that the subsidy availed by an industrial unit shall be recoverable as arrears revenue if the industrial unit goes out of production within five years from commencement.

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