PSPCL suffers Rs 1.4 crore loss for late recovery of dues from Mansa plant
Amount adjusted in monthly bill 23 days after SC vacated stay order, causing losses. The loss has been calculated in terms of interest PSPCL would have earned had it deposited the money in bank from the day the Supreme Court vacated stay on the recovery of amount.punjab Updated: Jun 12, 2017 12:21 IST
The Power State Power Corporation Limited (PSPCL) has suffered a loss of Rs 1.42 crore for delayed recovery of Rs 202 crore from Mansa-based Talwandi Sabo Power Limited (TSPL), a state government audit report has found.
The loss has been calculated in terms of interest PSPCL would have earned had it deposited the money in bank from the day the Supreme Court vacated stay on the recovery of amount.
TSPL, which sells electricity to PSPCL, owed the money as part of an agreement according to which it was exempted from paying excise and custom duty. The amount was adjusted in another monthly bill 23 days later.
The 1,980 megawatt (MW) private thermal plant had entered an agreement with PSPCL as it was granted the mega power status in August 2010. Since it was exempted from paying custom and excise duty to the tune of Rs 1,000 crore, it was to pass on part of benefits to PSPCL.
As per the formula, PSPCL is entitled to recover the benefit amount from the monthly bills of electricity it buys from TSPL. The two had signed a power purchase agreement in September 2008.
In April 2015, TSPL moved the Supreme Court which granted a stay on the recovery of amount. The SC vacated the stay on February 6 this year.
PSPCL officials were informed of this through email the same day informing them that they can recover the dues. The email was forwarded by the office concerned to the chief engineer (PPR) within minutes, with a noting to take necessary action.
But instead of taking action on it, some PSPCL officials in a hurried manner released the payment the same day for electricity purchased from TSPL.
ALSO SUFFERED Rs 60 LAKH LOSS
The report has also highlighted how PSPCL suffered a loss of Rs 60 lakh for not making timely recovery of a penalty of Rs 3.59 crore due in August 2015 on account of wrong declaration of power capacity by TSPL. It was after an HT report in March that this amount was recovered next month.
The resident audit officer has taken note of it “as a serious irregularity”.
The two are also in arbitration over the recovery of penalty for delayed operation of TSPL. It was set to commence in 2013, but got fully operational in 2015 only.