Odisha Government Reviews LAccMI Bus and Ama Bus Stand Schemes Following Audit Observations
Bhubaneswar, May 31: The Odisha government has launched a detailed review of two of its major public transport initiatives—the LAccMI Bus Scheme and the Ama Bus Stand Scheme—after the Accountant General (AG) raised several questions regarding fund utilization, project execution, and administrative procedures. The move is aimed at ensuring greater transparency and accountability in the implementation of these flagship transport projects.
The LAccMI (Location Accessible Multi-modal Initiative) Bus Scheme, which has now been restructured as the Chief Minister Bus Service (CMBS), was introduced to improve transportation facilities in rural and remote areas of the state. Similarly, the Ama Bus Stand Scheme was launched to modernize bus terminals and provide better amenities for passengers across Odisha.
According to audit findings, the government released nearly ₹2,806 crore for the bus service project between the financial years 2023-24 and 2025-26. However, the audit pointed out that a substantial portion of the allocated funds remained unspent during this period. Reports indicate that more than ₹153 crore remained unused in 2023-24, while unspent balances increased to over ₹369 crore in 2024-25 and approximately ₹478 crore in 2025-26.
The Accountant General has sought clarification from the Commerce and Transport Department regarding the reasons behind fresh fund allocations despite the presence of significant unutilized balances. The audit authority has also questioned delays in the submission of expenditure statements and utilization certificates by the Odisha State Road Transport Corporation (OSRTC), which is responsible for implementing the scheme.
Another important aspect of the review relates to the appointment of consultants for the project. The audit has asked the government to explain the process through which consultancy services were awarded and whether proper procedures, including competitive selection methods, were followed. Questions have also been raised regarding the performance evaluation of consultants and the justification for extending consultancy contracts.
The government’s student-friendly free travel initiative under the Chief Minister Bus Service has also come under scrutiny. The audit team has requested details regarding the identification of eligible beneficiaries, the compensation model adopted for transport operators, and the overall financial impact of the scheme. Authorities have additionally been asked to assess whether the initiative has contributed to improving school attendance and reducing dropout rates among students in rural areas.
Meanwhile, the Ama Bus Stand Scheme, which is being integrated into the newly proposed Atal Bus Stand initiative, is also being examined. The audit seeks detailed information on expenditure patterns, project implementation status, and the utilization of resources allocated for the development and modernization of bus terminals. The state government aims to upgrade hundreds of bus stands with improved infrastructure, passenger facilities, and modern management systems.
Responding to the audit observations, Odisha Transport Minister Bibhuti Bhusan Jena stated that the government would carefully examine all concerns raised in the report. He assured that appropriate measures would be taken wherever necessary to improve efficiency and accountability. The minister also highlighted that the government remains committed to strengthening public transport services and ensuring that public funds are utilized effectively.
The ongoing review is expected to help identify gaps in project execution, improve financial discipline, and strengthen governance mechanisms. Officials believe the exercise will ultimately contribute to creating a more efficient, transparent, and citizen-centric public transportation network across Odisha.
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