Sri Vijaya Puram, June 16: Member of Parliament Bishnu Pada Ray has sought immediate intervention from the Andaman and Nicobar Administration over the surrender of approximately Rs 127 crore in capital funds during the financial year 2025-26, describing the development as a matter of serious concern in view of the islands’ continuing infrastructure and public service requirements.
In a letter addressed to the Chief Secretary of the Andaman and Nicobar Administration on June 14, Ray called for a comprehensive review of the circumstances that led to the non-utilisation and subsequent surrender of funds sanctioned under the capital head. He also urged the administration to fix department-wise responsibility and identify officials accountable for delays in approvals, sanctions, procurement and project execution.
According to the letter, around Rs 127 crore out of the total capital budget estimate of Rs 555 crore sanctioned by the Ministry of Home Affairs for the Union Territory during FY 2025-26 remained unutilised and was eventually surrendered. The MP stated that the situation was particularly concerning as several sectors continue to face infrastructure deficits and service delivery challenges.
The communication cited figures obtained from the Finance Department, indicating that major portions of the surrendered amount came from key departments. The Andaman Public Works Department (APWD) accounted for the largest share at Rs 36.84 crore, followed by the Shipping Department with Rs 20 crore and the Health Department with Rs 19.43 crore. Other departments that reportedly surrendered significant funds included Disaster Management (Rs 12.81 crore), State Transport Services (Rs 9.11 crore), Electricity Department (Rs 7.21 crore) and the Education Department (Rs 4.59 crore).
Ray further highlighted that fund surrender has remained a recurring issue over the last five financial years. According to the data attached with the letter, approximately Rs 705 crore under Union Territory funds and Rs 203 crore under Centrally Sponsored Schemes were surrendered between 2021-22 and 2025-26, taking the cumulative surrendered amount to about Rs 908 crore.
The MP argued that such large-scale surrender of funds assumes greater significance when the islands continue to face pressing developmental needs. He pointed to deteriorating roads, pending bridges and drainage projects, shortages in healthcare infrastructure and medical equipment, power supply issues, deficiencies in educational facilities, public transport constraints and challenges in the shipping sector.
The letter also referred to allegations that delays in obtaining administrative approvals and expenditure sanctions had prevented timely utilisation of funds. In several cases, project files were reportedly held up for extended periods and subjected to repeated queries, leading to delays in implementation and eventual surrender of allocations at the end of the financial year.
Ray observed that regular review meetings are conducted under the chairmanship of the Chief Secretary with participation from senior administrative officials and heads of departments. Given the existence of such monitoring mechanisms, he questioned how substantial amounts of sanctioned funds could remain unutilised year after year.
Describing the surrender of Rs 127 crore as more than a routine administrative lapse, the MP said it represented a loss of development opportunities for the people of the islands. He stated that the issue reflected shortcomings in financial planning, project execution and administrative accountability.
Among the measures proposed, Ray has sought an immediate review of the matter, fixation of departmental responsibility, identification of officials responsible for delays, establishment of a stronger monitoring mechanism and the conduct of monthly fund utilisation reviews under the personal supervision of the Chief Secretary.
The letter has also been marked to the Prime Minister, the Union Home Minister and senior officers of the Andaman and Nicobar Administration for information and necessary action.
The issue is expected to draw attention to fund utilisation practices within the administration and may trigger a broader review of project implementation and expenditure management across departments in the Union Territory.
