The policy of the Government is to provide holistic health care by bringing Indian Systems of Medicine (ISM) into the mainstream. Government seeks to achieve its objectives by expanding the existing network of ISM institutions, improving the quality of medical education, etc. The present Performance Audit revealed near absence of a system for management of project funds provided by the Central and the State Governments, chronic shortage of physical and human infrastructure in medical institutions and lack of efforts to further research and development in ISM. Main audit findings are summarised below:

1. Delays in procurement of equipment resulted in huge sums lying in the bank accounts of Tamil Nadu Medicinal Plant Farms and Herbal Medicine Corporation Ltd., (TAMPCOL) and State AYUSH Society. The Department parked unutilised funds with TAMPCOL.
2. The shortage of manpower across various posts ranged from 10 to 38 per cent in regular ISM wings, 48 per cent in ISM wings created under National Rural Health Mission and up to 100 per cent in ISM wings created under AYUSH.
3. Out of 297 ISM wings in the sampled districts, 31 stopped functioning and 25 functioned for four days or less per week due to shortage of medical personnel.
4. TAMPCOL, the PSU which manufactures and supplies medicines to ISM wings supplied only 47 and 50 per cent of the total quantity of medicines indented by the hospitals/wings during 2016-17 and 2017-18 respectively due to inadequate provision of funds and short production. No medicines were supplied to Unani wings during 2016-17.
5. During 2013-18, 82 drugs found to be ‘Not of Standard Quality’ could not be frozen or recalled immediately from distribution due to delay in drug testing on account of shortage of staff in drug testing laboratory.
6. Ayurveda, Unani and Homoeopathy colleges of the Government did not offer Post Graduate courses, hampering expansion of the reach of ISM.
7. The Research and Development wing sanctioned by the Government in 2013 at a cost of Rs 12 crore did not start functioning even as of August 2018 and the assets created were lying idle due to lack of coordinated action in procuring equipment and recruiting staff.