Luxury Retreats, Lean Returns: CAG Audit Raises Questions Over Previous Odisha Govt’s Eco Retreat Model

Bhubaneswar, Sep 30: Marketed as one of Odisha's flagship tourism initiatives, the Eco Retreat project was designed to showcase the state's beaches, culture and natural landscapes through luxury tented accommodations and curated tourist experiences. However, a recent audit by the Comptroller and Auditor General (CAG) has cast a shadow over the programme, raising questions about its financial sustainability and the manner in which public funds were utilised during the previous BJD government's tenure, official sources said on Wednesday.

The audit findings indicate a significant gap between expenditure and revenue, fuelling fresh political debate over whether the ambitious tourism model delivered value for money.

High spending, low returns

According to the CAG report, the then BJD government spent Rs234 crore on Eco Retreat operations between 2019 and 2024, while earning only Rs26 crore in revenue. The audit estimated a cumulative loss of Rs207.68 crore to the State exchequer during the period.

The report further noted that the average additional expenditure per retreat rose from Rs4.57 crore in 2020 to Rs10.85 crore in 2024, even as financial returns failed to keep pace.

Audit points to operational gaps

The CAG attributed the losses to a combination of factors, including inadequate publicity, lower tourist footfall and shortcomings in service delivery. Despite substantial spending on temporary tourism infrastructure and luxury accommodations, the project struggled to generate expected visitor numbers and revenue.

The findings have sparked criticism from opponents of the previous BJD government, who argue that the project prioritised optics over financial prudence and long-term planning.

Broader concerns in tourism spending

The audit also found that Rs103.35 crore of the Rs2,278 crore allocated for tourism development between 2019-20 and 2023-24 remained unspent.

Additionally, government-run facilities such as Panthanivas, Yatri Nivas and Aranya Nivas were reportedly awaiting Rs10.72 crore in dues, while another Rs72 lakh remained recoverable from private entities.

The report also cited the Konark Beach Café project, which reportedly underperformed due to inadequate road connectivity and insufficient parking infrastructure.
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Expansion amid mounting losses

The Eco Retreat initiative expanded from a single location in 2019-20 to seven destinations by 2023-24. Yet, according to the audit, the expansion did not translate into proportional revenue generation.

With the findings now in the public domain, the Eco Retreat project has become a focal point in the larger debate over accountability, efficiency and the effectiveness of public spending on tourism infrastructure in Odisha.