Giving a pulse of the poor financial health of power distribution companies due to non-payment of bills for the energy consumed, the Comptroller and Auditor General (CAG) has stated that the government departments and local bodies within the operational limits of the Northern Power Distribution Company of Telangana Limited (TSNPDCL) owed dues of Rs.820.89 crore till March 31 last year.
In its performance audit report, the CAG hauled up the distribution company for having revenue arrears of Rs.1,232 till the end of last financial year, including Rs.249.03 crore from other live services. It has pointed out that the company had failed to adhere to agricultural sales volume approved by the State Electricity Regulator Commission (SERCS) and did not claim the cost from the government for the additional units supplied, resulting in loss of Rs.1,077.27 crore from 2011-12 to 2015-16.
On the distribution losses due to TSNPDCL's failure to implement remedial measures, the CAG report observed that the company had suffered a loss of Rs.194.27 crore due to it during 2011-16. Further, it had neither collected the subsidy of Rs.693.23 crore from the government for 2014-15 and 2015-16 nor implemented the full cost recovery tariff as it had received only Rs.5,238.98 crore for the two years against the claims of Rs.5,932.21 crore.
On the other hand, the CAG report rapped the distribution company for not ensuring supply for seven hours a day to all agricultre feeders though the subsidy was paid for seven hours supply. About Rs.1,176.8 crore was not spent on fulfilment of government objective of supplying seven-hour free power to agriculture consumers.
Undue benefit
Further, the auditing agency pointed out that Southern Power Distribution Company of Telangana Limited (TSSPDCL) had extended Rs.116.8 crore of undue benefit to commercial units located on the premises of IT infrastructure companies and IT/ITES firms, extension of power concession to non-IT/ITES companies and on other grounds.
The CAG report pointed out that the State Government/Industrial Infrastructure Corporation had suffered a total loss of Rs.313.29 crore in nine cases as its financial interests were not safeguarded. It included a loss of Rs.73.75 crore as the joint venture company K. Raheja IT Park had resorted to unauthorised sale of 12.15 acres of land to non-IT sister companies but did not transfer the due share of sale proceeds to partner – government/IIC.
