Complaints galore, govt orders thirdparty audit of PSPCL
Congress govt has decided to conduct audit of last five financial years after complaints of irregularities and mismanagement in power utility during SADBJP regime
The audit will highlight the areas of shortcomings, and also list where we can improve to provide better services to consumers with cost effective electricity.
A VENU PRASAD, principal secretary, power dept, Punjab
PATIALA: Aiming to rein in irregularities and mismanagement within the Punjab State Power Corporation Limited (PSPCL), the state government has ordered a third-party audit of the corporation for its operations in the past five financial years. The decision for the first-of-its-kind audit of any government department was taken in the first cabinet meeting of the Captain Am arin der Sing hled government on March 18.
Having an annual budget of over ₹20,000 crore, PSPCL’s spending of ₹1 lakh crore and all long-term power purchase agreements will be audited. Power theft in all prominent Akali leaders’ strongholds at above 40% against the state average of 15% and tube well connections released on the recommendation of Akali leaders will also be probed. The power body pays ₹2,700 crore annually as fixed charges to private thermal plants, eroding its financial health, besides making power costlier.
The government has even floated a tender to hire an auditor for performance review of PS PC L in the matters of power generation, procurement, power sale and surrender, coal linkage and coal procurement, capacity addition vis-a-visu ti lisa ti on, material procurement and utilisation, fund management, release of connections and review of power theft losses, including supply to agricultural sector.
The audit was one of the major poll promises of the Congress as party president SunilJakh ar had raised the matter before elections, accusing the Shiromani Akali Dal (SAD) government of causing heavy loss est oPS PC L to nurture the interests of private players, apart from using the body for political motives.
Power engineers had previously demanded the audit, alleging various irregularities committed by the management, especially after the arbitrary extension of KD Chaudhary, the then PS PC L chairman and managing director in February 2014, and other directors by the erstwhile government.
The PS EB Engineers Association had through written complaints alleged that disregarding the rules, PSPCL management had taken arbitrary actions to benefit some firms and people in quid pro quo arrangement.
Allegations included largescale irregularities committed by the PS PC L management, including loss of ₹500 cr or et oPS PC L due to abnormally high rates awarded to private companies under Part B of Restructured Accelerated Power Development and Reforms Programme (R-AP DR P) scheme worth ₹1,700 crore and loss of ₹1,231 crore to PSPCL on account of non-recovery of liquidated damages due to delay in commissioning of private thermal plants at Talwandi Sabo and Goindwal Sahib.
Then on-operation of aP SP CL coal mine, and purchasing coal from outside, will also be audited as there are allegations that nonoperation of the mine caused a loss of ₹400 crore in two years, which further compounded because of loss of ₹200 cr ore due to import of coal from M/s Adani.
In case of Talwandi Sabo thermal plant, use of unwashed coal led to loss of ₹500 crore to PSPCL on account of higher power purchase cost and undue financial benefit of ₹350 cr ore on account of saving of washing cost. The association had also alleged benefits amounting to several crores to M/sNuc on, a transformer manufacturing firm, and other firms.
“The audit will highlight the areas of shortcomings, and also list where we can improve to provide better services to consumers with cost-effective electricity,” said A Venu Prasad, principal secretary, power , Punjab.