Bhubaneswar: The Odisha State Government has initiated a detailed probe into the LAccMI (Location Accessible Multi-modal Initiative) bus scheme and the Ama Bus Stand project after the Accountant General raised multiple serious objections regarding large-scale unutilized funds, delayed Utilization Certificates, and irregularities in consultant appointments.
The Commerce and Transport Department has been asked for clarifications and replies following a series of audit objection letters. The audit has particularly highlighted massive unspent grants under the LAccMI scheme despite huge allocations.
A total grant of Rs 2,806 crore was provided for the LAccMI scheme between 2023-24 and 2025-26. However, a significant portion remained unutilized with Rs 153.56 crore unspent in 2023-24, Rs 369.18 crore in 2024-25, and Rs 478.36 crore in 2025-26.
The Accountant General has sought explanations on why additional funds were released even when previous allocations were not fully utilized. Strong objections have also been raised over the Odisha State Road Transport Corporation’s failure to submit timely expenditure reports and Utilization Certificates, particularly from the third quarter of 2024-25 onwards.
A major concern is the appointment of Delhi Integrated Multimodal Transit System (DIMTS) as consultant for the LAccMI scheme in 2023 at a monthly fee of Rs 2.14 crore.
The contract was initially for six months and later extended by another six months. The audit has questioned whether any Expression of Interest or market survey was conducted before selecting the firm and has directed the department to submit the company’s performance review report along with the qualification details of the appointed consultants.
The free bus travel facility for students is also under scrutiny. Students were first given a 50% discount which was made completely free from December 2025. The department has been asked to submit monthly and quarterly reports on the student identification system, funds sanctioned, revenue loss due to the concession, and data showing whether the scheme has actually helped in reducing student dropout rates.
The probe also covers the Ama Bus Stand scheme and water transport initiatives. The Accountant General has demanded complete details of funds sanctioned for construction, operation and maintenance of Ama Bus Stands, expenditure incurred, balance funds remaining, and whether any scheme money was diverted for other works.
This audit-driven probe is expected to bring greater accountability to the state’s flagship transport projects aimed at improving last-mile connectivity and affordable travel. Further updates are awaited as the department submits its detailed response to the Accountant General.
