Performance Audit on Working of The Canteen Stores Department
Key Recommendations:
1. Since CSD is holding an inventory of 5548 items, which includes 3035 items introduced in last six years, there is an urgent need for a comprehensive policy for introduction of new items, factoring in the consumer requirement and the popularity of the product.
2. Utility of having a centralized Base Depot needs to be reviewed due to its uneconomical functioning and in the light of advancements in logistics as well as in communication and information technology.
3. Ministry may put in place an effective mechanism to ensure effective implementation of the quality control measures at all levels of supply chain in CSD and Unit Run Canteens (URCs) so as to meet its commitment to the Food Safety and StandardsAuthority of India (FSSAI) and ultimately to the Consumers.
4. CSD being a commercial organization should adopt a set of accounting policies with disclosure requirements akin to those adopted by Organizations having commercial operations. Ministry should consider Audit Certificate issued by Statutory Auditor on Annual Accounts of CSD before sanctioning distribution of Canteen Trade Surplus (CTS).
5. Instead of sharing the profit as Quantitative Discount (QD), Ministry may direct the CSD (Head Office) to reduce its profit margin so that the ultimate consumer is benefited.
6. The sanctioning of regular and ad-hoc Grants-in-Aid should be transparent and on the basis of detailed proposals as envisaged in General Financial Rules. These grants should be utilized only for the welfare of the beneficiaries and any deviation or misuse of these grants should make the recipient ineligible for further grants from Ministry.
7. Controller of Defence Accounts (CDA), CSD should ensure that the Pension contribution, General Provident Fund (GPF) subscription and Central Government Employees Group Insurance Scheme (CGEGIS) should be deposited with the Government. Pension and other retirement benefits should be disbursed through the Treasuries/ Defence Pension Disbursing Officers (DPDOs) or the Banks as per the approved accounting procedure only.
8. CSD being a Pan India organization running on commercial principles, Ministry should expeditiously create a robust vigilance wing in CSD (Head Office) with a dedicated Vigilance Officer keeping in view the guidelines of Central Vigilance Commission.
9. The issue/cancellation of smart cards needs to be centrally monitored by CSD Directorate so as to avoid possible misuse of the facility. The case of misuse of cards may be finalised urgently so as to set an example for others. Further, CSD may institute a mechanism to communicate the beneficiary about their transaction through smart card so as to mitigate the risks of fraudulent purchases.
10. As financial assistance in the form of Quantitative Discount (QD), support from the Defence Services by deployment of Service personnel and accommodation at nominal rent/rent free is provided to URCs, the recommendation in the last Performance Audit to bring the URCs under the accountability regime of
Parliament is restated.
11. Ministry/CSD should strengthen mechanism to ensure that liquor against authorized
strength only is sold to the URCs to prevent its leakage into the civil market and the demand should match the limit permitted by the Excise department. In addition, liquor license may be taken on the basis of actual posting and not on the sanctioned strength.
Source: cag.gov.in
Contact Details and Office addresses of all CSD Depots in India
List of CSD Depots in Mumbai Region: (3)
| CSD Head Office |
| CSD Mumbai Region Office address and contact details – Sewri, Mumbai |
| CSD Mumbai Region Office address and contact details – Mazgaon, Mumbai |
| CSD Head Office of RM(Central) |