CAG flags shortfall in power generation by 1,175 million units leading to loss of Rs 764 crore
The Comptroller and Auditor General (CAG) has flagged a shortfall in power generation by the Punjab State Power Corporation Limited to the extent of 1,175 million units during 2019-22 against the stipulated target, amounting to a loss of Rs 764 crore.
In addition, annual maintenance activities undertaken beyond the lean period resulted in generation loss of 384.42 million units, while delay in execution of various works resulted in avoidable generation loss of another 64.69 million units valuing Rs 42 crore.
“Loss of generation occurred due to inefficient operations of powerhouse, delay in execution of repair and maintenance work, forced shutdowns and carrying of annual repair and maintenance beyond the lean season,” CAG observed in its report tabled before the state legislature on September 4.
“The company had not evolved any mechanism of inventory management such as fixing of inventory level of various spares according to their rate of consumption and criticality, ensuring timely availability of adequate number of critical spare and vital components. There was shortage of technically qualified manpower in the powerhouse and no formal training programmes were arranged,” CAG observed.
CAG revealed that during 2019-20 to 2021-22, the shortfall in three hydro-power generating units was 1,175 million units on account of forced shutdown, delay in carrying out major repair and capital maintenance works, annual maintenance during peak period and less availability of water.
The state government had maintained that the targets could not be achieved as the same had been fixed by the Central Electricity Agency (CEA) on assumption basis and were not backed by scientific basis. This was not accepted by CAG as the CEA fixes targets after considering all standards and parameters.
CAG also pointed out that higher transmission losses were due to installation of single phase instead of three phase generator transformers and old generator transformers which have outlived their life, to which the state government responded that remedial measures were being undertaken.
During 2019-22, the total forced outages were 10,365 machine hours, the major reasons for which were breakdown of machine or equipment, failure of 132 KV transmission system and choking of inlet canal due to trash.
To bring down the forced outages, the company was required to improve its maintenance practices. CAG observed that at the Ranjit Sagar Dam, forced outages were being treated as planned outages and the works under forced outages were being carried out as planned works, which was not justified.