SRINAGAR: Two road projects taken up under NABARD’s Rural Infrastructure Development Fund in Jammu and Kashmir were abandoned after an expenditure of Rs 1.66 crore, leaving the spending partially unproductive, according to the Composite Audit Report.
The two projects, out of 309 NABARD-funded projects test-checked by audit, had a combined sanctioned cost of Rs 5 crore. The audit observed that the abandonment meant the intended road connectivity could not be fully provided to the rural population.
The projects were sanctioned under different RIDF tranches. The Main Road Choolan to Daragutliyan to Bosian Phase-I project in Uri, Baramulla, was sanctioned under RIDF-XXV, while the Construction/Upgradation of Hanga Dilmarg Road in Handwara, Kupwara, was sanctioned under RIDF-XXII.
Uri project abandoned after contractor stopped work
The Main Road Choolan to Daragutliyan to Bosian Phase-I project in Uri was sanctioned at Rs 2.49 crore, against which Rs 98 lakh had been spent.
The contractor abandoned the work in March 2022. The R&B Division, Uri had issued notices directing the contractor to resume the work, but the audit noted that the division had not recorded the reasons for the abandonment.
In its response in December 2025, the department stated that repeated notices failed to secure resumption of the work. The contract was subsequently foreclosed and the remaining work was re-tendered at the contractor’s risk and cost for Rs 61.82 lakh.
The balance work was eventually allotted for Rs 49.46 lakh and executed on priority. The department further stated that Rs 25.75 lakh was released during 2025-26 and the amount was fully utilised.
Hanga Dilmarg road abandoned after repeated damage
The Construction/Upgradation of Hanga Dilmarg Road in Handwara was sanctioned at Rs 2.51 crore, with Rs 68 lakh spent before the project was abandoned.
The contractor discontinued the work in March 2018 after the upgraded road surface was repeatedly damaged by the movement of heavily loaded trucks and tippers involved in the extraction and transportation of construction material from nearby areas.
The audit pointed out that the issue had not been anticipated at the Detailed Project Report stage, indicating deficiencies in project planning.
The department, in its December 2025 response, stated that the road had suffered irreparable damage and the project was abandoned to prevent further deterioration.
Audit flags partially unproductive expenditure
The audit concluded that the expenditure incurred on the two abandoned projects had become partially unproductive because the intended road connectivity could not be provided to the rural population.
The findings highlight shortcomings at different stages of project implementation, including contractor performance and planning at the Detailed Project Report stage.
Across the 309 NABARD projects test-checked, the audit identified four abandoned road projects with a combined sanctioned cost of Rs 11.07 crore and expenditure of Rs 4.27 crore. The two projects detailed in the available table accounted for Rs 5 crore of sanctioned cost and Rs 1.66 crore in expenditure.
