CAG: Power users overburdened by Rs 168 cr in 2014-19

Bhartesh Singh Thakur

Tribune News Service

Chandigarh, March 11

The Comptroller and Auditor General (CAG) has found that due to “inefficiencies” on the part of Haryana Vidyut Prasaran Nigam Limited (HVPNL), consumers had to bear a burden of Rs 168.54 crore between 2014 and 2019. The report was tabled during the ongoing Assembly session.

The HVPNL could not ensure synchronous completion of substations and associated transmission lines, which resulted in overburdening consumers by Rs 67.33 crore and due to delay in repair of transformers and under-utilisation of substations, a burden of Rs 6.71 crore had to be borne by people.

Profitability of the HVPNL was adversely affected by Rs 70.08 crore between 2014 and 2019 due to inefficiencies with regard to transmission cost, availing mid-term loan against government guarantee without carrying out cost-benefit analysis, delayed filing of aggregate revenue requirement and non-adherence to working capital norms.

The HVPNL did not fully avail World Bank loans available at low rates due to poor pace of project implementation and resorted to costlier funding arrangement with the Rural Electrification Corporation, which cost it Rs 24.63 crore. It had to bear costs of Rs 31.32 lakh on account of front-end fee on an unavailed portion of a World Bank loan.

Thirty of the 32 projects commissioned between 2014 and 2019 were delayed by between three months and over eight years.

On Haryana Power Generation Corporation Limited, the CAG said it paid Rs 27.29 crore as compensation for short lifting of coal during 2016-17 as it did not initiate timely action for reduction of annual contracted quantity of coal with Coal India Limited for its Panipat thermal power station.

The CAG also pointed out that Uttar Haryana Vitran Nigam had to bear charges of Rs 59.83 crore due to inadequacy of functional automatic power factor capacitors, meant for improvement by regulating current flow and voltage.