Lambasting the Indian Renewable Energy Development Agency (IREDA) for failing to maintain its lead position as the leading financial institution in the sector, the national auditor in its recent report has questioned the agency’s One-Time-Settlement Policy (OTS).
From 2008-09 to 2012-13, 29 cases were settled in which the amount due for recovery was about Rs 447 crore but of which only about Rs 209 crore was recovered through OTS, resulting in a loss of about Rs 238 crore to the state exchequer, the Comptroller and Auditor General (CAG) said in its report tabled in Parliament on Thursday.
Moreover, as on March 2013, 67 projects in respect of 59 borrowers, involving about Rs 255 crore were categorized as non-performing assets.
IREDA’s share in total commissioned capacity of renewable energy sources slid from 53% in 2002 to 8% in 2012.
Set up in 1987, IREDA is mandated to extend term loans to renewable energy and energy efficient projects.
The CAG also called into question IREDA’s adherence to the Fair Practices Code.
“In an analysis of 211 projects that were sanctioned from 2008-09 to 2012-13, 10 projects including two projects of the Tata Power Company Limited and the Maharashtra State Power Generation Company were sanctioned on the same day on which the applications was registered,” the report said.
“IREDA violated its guidelines in some cases by sanctioning loans for the projects even before registration, whereas, it sanctioned loans for some projects in a very short time period”, the CAG report said.
The national auditor also attacked IREDA for sanctioning loans beyond the prescribed limit.
CAG had undertaken a performance audit of IREDA because of renewable energy sources assuming increasing significance with growing concern for India’s energy security.