Inept planning, Haryana power utility incurs Rs 786 cr loss

Bhartesh Singh Thakur

Tribune News Service

Chandigarh, December 23

Uttar Haryana Bijli Vitran Nigam (UHBVN) has lost Rs 786.54 crore due to inefficiencies in the planning and execution of Mhara Gaon Jagmag Gaon (MGJG) scheme, reveals the Comptroller and Auditor General (CAG) in its report tabled in the Assembly.

• Mhara Gaon Jagmag Gaon scheme was launched in July 2015
• Aim was to cut T&D losses, increase billing and collection efficiency
• CAG says delay in awarding works and poor execution by UHBVN defeated the entire purpose
• The power utility lost potential revenue of Rs786.54 crore, it says

The MGJG, a flagship scheme of the Haryana Government, was launched in July 2015, to cut T&D losses on rural distribution supply feeders and increase billing and collection efficiency.

The power supply to villages was to be increased from 12 hours a day to 24 hours a day in a phased manner.

The CAG highlighted delayed decision in awarding works on turnkey basis, as the department could execute work in only 8.2 per cent feeders from 2015-16 to 2017-18.

After completing some part of the work, the UHBVN in 2017 realised that it was to use armoured cables as aerial bunched cables could be punctured to draw power illegally. So, the cables were changed over a large area.

The CAG said two contracts worth Rs 39.94 crore were awarded to Ishwar Singh & Associates Construction Pvt Ltd in violation of tender norms. Six of the eight contracts awarded to the firm were completed with delays ranging from six to 29 months. The UHBVN awarded five more contracts to five other contractors, who also caused delays. “Work on 295 feeders was pending till January 2021. The power utility thus lost the potential revenue of Rs 786.54 crore,” the CAG said.

The report said, “Even after completion of work on 349 feeders up to March 2019, the T&D losses remained more than 20% on 165 feeders during 2019-20. The scheme aim could not be fully achieved.”

Besides, the Haryana Power Purchase Centre incurred extra Rs 209.33 crore in purchasing costly power from private producers and preparing incorrect merit order which put extra burden on consumers.

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