Variation in the gross calorific value of invoiced coal and that received led to an excess coal consumption valued at Rs. 2,082.44 crore by the Telangana State Power Generation Corporation Ltd, according to the Comptroller and Auditor General of India.
Excess consumption
“Abnormal difference in the GCV as per the invoiced coal and the bunkered coal resulted in excess consumption of coal of 76.02 lakh tonnes, valued at Rs. 2,082.44 crore,” said CAG’s performance audit of fuel management by the Corporation.
As per the CAG report (2014-15) on public sector undertakings, of which the performance audit was a component, the Telangana State Power Generation Corporation Ltd also incurred an avoidable additional expenditure of Rs. 170.56 crore on coal procurement.
Audit findings
The Corporation did not approach the Centre to bridge the gap between the normative requirement and linkage already obtained despite the New Coal Distribution Policy of the government providing for 100 per cent supply as per norms.
“Due to this, the company had to procure coal at higher price over and above the linkage quantity and thus incurred an additional expenditure of Rs. 170.56 crore which was avoidable,” said the report tabled in the Telangana Assembly on Wednesday.
Other main audit findings included higher demurrages TSGENCO had to pay due to lack of unloading facilities after the Railways introduced a new type of wagon; and a high quantum of unburnt coal in fly ash and bottom ash translating into a wastage of 3.53 lakh tonnes of coal valued at Rs. 66.73 crore.
No review on coal supplies
“Internal control system was found deficient as there was no proper mechanism to review the coal supplies and their utilisation according to the requirement; no mechanism to review the inventory levels of coal; and transit loss/demurrage charges were not monitored,” the CAG report said.
Capacity
The TSGENCO commenced operations from June 2, 2014 and has a capacity of 2,282.5 MW at three thermal plants.
Abnormal difference in GCV led to excess coal consumption valued over Rs. 2,000 crore
