Special Correspondent

SPDCL rapped for losing Rs. 359.72 crores

HYDERABAD: The Comptroller and Auditor General (CAG) of India has rapped Singareni Collieries Company Limited (SCCL) for excess expenditure of over Rs. 120 crores on operations during 2005-06.

In its 2005-06 report tabled in the Assembly on Friday, the CAG faulted Singareni for not having a clear-cut, stated policy in outsourcing of removal of overburden in open cast mines that accounted for 23-25 per cent of its total expenditure. Over 70 per cent of removal work was outsourced in five to 11 mines during the five years preceding 2006. In spite of it, there was a backlog of overburden removal in six open cast mines resulting in an additional expenditure of Rs. 48.93 crores on its removal later. Besides, delays and fixation of rates resulted in avoidable expenditure of another Rs. 28.02 crores. After imposing service tax, SCCL accepted the diesel rates component quoted by contractors without verification resulting in an extra commitment of Rs. 43.13 crores.

Power sector

The Southern Power Distribution Company of AP Limited (SPDCL) also came in for adverse notice as it had lost Rs. 359.72 crores in 2001-02 to 2005-06 due to sale of power in excess of quota fixed by APERC for subsidised categories of consumers. It also failed to levy bulk supply tariff for rural power supply firms , leading to short billing of revenue to the tune of Rs. 14.83 crores. Further, wrong categorisation of services and non-adherence of tariff conditions led to Rs. 27 crores. Also, concessional tariff to ineligible consumers without ensuring criteria fulfilment had led to a loss of Rs. 5.67 crores.

Though the State had received Rs. 265.10 crore as incentive for reducing losses, the same was not released to distribution companies, in contravention of conditions stipulated in a MoU.Other observations included Rs. 7.80 crores investment made by Hyderabad Information Technology Venture Enterprises made without following guidelines, resulting in investment not yielding without returns. AP Beverages Corporation had sold liquor at old prices losing Rs. 32.78 crores and Transco gave undue benefits of Rs. 8.28 crores to an independent power producer as reimbursement of insurance charges not covered by PPA. By failing to collect electricity duty on power supplied to ferro alloy units, the Central and Eastern discoms lost Rs. 13.55 crores.