Due to ‘inefficiencies’ of HVPNL, consumers were overburdened by Rs 168 crore: CAG

Bhartesh Singh Thakur
Tribune News Service
Chandigarh, March 6  

The Comptroller and Auditor General (CAG) learned that due to the “inefficiencies” of Haryana Vidyut Prasaran Nigam Limited (HVPNL), the consumers had to bear a burden of Rs 168.54 crore from 2014-19. 

The report was tabled before Haryana Assembly on Saturday.  

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

The CAG found out that due to the non-passing of benefits of Advance Against Depreciation (AAD) and interest waiver to the consumers, the burden was enhanced by Rs 72.64 crore.   

The profitability of HVPNL was adversely affected by Rs 70.08 crore during 2014-19 due to inefficiencies like non-achievement of Transmission System Availability (TSA), availing mid-term loan against government guarantee without carrying out cost-benefit analysis, delayed filing of Aggregate Revenue Requirement (ARR), and non-adherence to working capital norms.  

“The Company could not fully avail the World Bank loans available at cheaper rates, due to poor pace of project implementation, and resorted to costlier funding arrangement with Rural Electrification Corporation which cost the Company Rs 24.63 crore. Also, the Company had to bear Rs 31.32 lakh on account of front end fee on an un-availed portion of World Bank loan,” said the CAG.   

Thirty out of the 32 projects, commissioned by the Company during the years 2014-19, were delayed in completion ranging between three months to over 8 years.  

On Haryana Power Generation Corporation Limited, the CAG said that it paid Rs 27.29 crore as compensation for the 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 (UHBVN) had to bear reactive energy charges of Rs 59.83 crore due to the inadequacy of functional Automatic Power Factor Capacitors (APFCs), which is an electrical device for improving power factor by regulating current flow and voltage.