Owing to numerous complaints of irregularities in disbursing Rs 555 crore to the industries in hilly and remote areas, the government has sought a Comptroller and Auditor General (CAG) audit into the transport subsidy scheme introduced in 1971 to promote industrial investment in the hilly, remote and inaccessible areas.

The CAG audit has been sought by the Department of Industrial Policy and Promotion (DIPP) on the suggestion of the Planning Commission.

The transport subsidy scheme which has disbursed Rs 1,652 crore till November 30, was introduced in ares such as Arunanchal Pradesh, Manipur, Mehgalaya, Mizoram, Nagaland, Sikkim, Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Darjeeling (West Bengal), besides Union Territories of Andaman and Nicobar Islands and Lakshadweep.