The Comptroller and Auditor General of India (CAG) has rapped Delhi Transco Limited for extending undue benefits to private power distribution companies — BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL), resulting in non-recovery of long-pending dues of over Rs. 700 crore.
Delhi Transco manages and controls transmission of electricity and grid operations in the city and the discoms pay a monthly fee — known as ‘wheeling’ charge — for using their facilities.
The audit body said BRPL and BYPL were not regular in paying the wheeling charges from October 2010 onwards.“An amount of Rs. 754.83 crore was pending for recovery from them as on December 15, 2012,” states the CAG report for the year 2011-12 tabled in the Delhi Assembly on Tuesday.
According to the bulk power transmission agreement (BPTA) between Transco and the discoms, the former had the option of discontinuing or deregulating transmission of power to the distributing companies in case of default but it did not take any such action, the CAG said.
“Transco failed to safeguard its financial interest by not following the provisions of the agreement signed with discoms, thereby extending undue benefits to private companies,” states the report
It said Transco was asked to increase its capacity to 14,000 MVA by March 2012. Against this, the capacity achieved as on March 2012 was 13% less.
“The DTL could not complete its projects as per the original schedule and time frame. There was a cost overrun of Rs. 109.04 crore due to a substantial time gap in conceiving and implementing projects,” states the report.
In addition, delay in decision making, wrong decision and improper contracts led to extra or avoidable expenditure of Rs. 5.35 crore. The CAG pointed out extra expenditure of Rs. 24.86 crore on excess use of 129.10 km of HDPE pipes for laying transmission lines.