Pointing to holes in implementation of rural electrification programme, the Comptroller and Auditor General (CAG) has pointed out grave violation of rules in grant of contracts, delay in awarding of crucial projects, diversion of funds and undue favours to contractors in the execution of the prestigious Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) leading to cost variations of Rs. 2,262 crore.
Stating that Central Vigilance Commission (CVC) guidelines were not followed properly, the CAG, in its report tabled in Parliament, stated there were cases of undue favour and violation of rules advertisement procedures in award of contracts. “In the test checked cases, 29 projects amounting to Rs. 548.61 crore were awarded to ineligible contractors in two states. Further, undue benefit of Rs. 114.40 crore was extended to contractors on account of permitting higher rates, non-deduction of taxes etc which also resulted in avoidable increase of project costs by that amount,” the report states.
It said inadequacies in identification and estimation of un-electrified villages and BPL beneficiaries at the planning stage had the impact of variations in cost estimates to the extent of Rs. 2,262 crore. “In 425 out of 576 projects, the time taken to award the project was more than three months. The maximum delay was up to 46 months in two projects in West Bengal. The delay also led to cost escalation of projects. In test-checked cases in five states alone, the increase in cost amounted to Rs. 696 crore,” it adds.
There were also instances of diversion of funds to the tune of Rs. 157.78 crore for non-RGGVY purposes as RGGVY funds were mixed with general funds of the state power utilities. CAG also found that nearly Rs. 158 crore funds meant for RGGVY was diverted.
Despite delay by contractors in completion of projects in time, the report said that in 14 states liquidated damages amounting to Rs.166.40 crore were not levied. Expenditure of Rs. 41.42 crore was incurred for ineligible works, payments for works not done or assets not created and unfruitful expenditure on assets not put to use, it said. “The Power Ministry did not conduct feasibility study before launching the scheme, despite recommendations from the 14th Lok Sabha's Standing Committee on Energy that updated statistic should be obtained on rural electrification,” it added.
