Patiala The Comptroller and Auditor (CAG) report on public sector undertakings has flagged off a a loss of ₹529 crore to the Punjab State Power Corporation Limited (PSPCL). The report documents poor implementation of schemes as the key reason for what it says was ‘avoidable loss’ for 2019-20.
Even as the major focus of the report on poor implementation of the Re-structured Accelerated Power Development and Reforms Programme (R-APDRP), a Centre-funded programme, it does record that low billing and collection efficiency in 21 and 19 towns respectively, resulted in revenue loss of ₹206 crore to the company.
The CAG says that undue waiver of interest and allowance of rebate to arc furnace industrial consumers, in violation of the Supply Code and Electricity Supply Instruction Manual 2018, resulted in undue financial burden of ₹12.8 crore.
Interestingly, even the media had reported chinks in the way the government was implementing the R-APDRP, which was launched in September 2008. The scheme envisaged reduction in Aggregate Technical and Commercial (AT&C1 ) losses, establishing reliable and automated systems for collection of base line data, adoption of Information Technology (IT) in the areas of energy accounting and customer care and strengthening of power distribution network in urban areas with population of more than 30,000. It was implemented in 47 towns of the state.
Initially, 100% of project cost was taken as loan from the Power Finance Corporation (PFC). The loan, along with interest, was to be converted into grant after the establishment of IT systems and verification by an independent agency that the PFC appointed.
{{/usCountry}}Initially, 100% of project cost was taken as loan from the Power Finance Corporation (PFC). The loan, along with interest, was to be converted into grant after the establishment of IT systems and verification by an independent agency that the PFC appointed.
{{/usCountry}}CAG found, however, that the PSPCL could not implement the R-APDRP scheme within the timelines that the Centre had stipulated. The conversion of loan into grant remained pending, leading to the company being deprived of conversion of interest of ₹179 crore into grant and tranche of grant of ₹116 crore. Against the target of reducing the AT&C losses to 15%, the AT&C losses of 22 towns were higher, which would result in non-conversion of loan of ₹7.7 crore into grant.
The report also pointed out that the lack of co-ordination between operational wings of the company, during the construction of Stage-II of Mukerian Hydel Project, resulted in avoidable loss of generation of power, valued at ₹15.2 crore.