Power reforms scheme running slow: CAG

Power ministry had budgeted Rs 12,415.04 crore during 2008-09 to 2014-15 for R–APDRP scheme which was only 43.68 percent of the envisaged amount

GN Bureau | December 22, 2016


#CAG   #power   #power generation  



The CAG has found shortcomings in the Restructured Accelerated Power Development and Reforms Programme (R-APDRP), which was to focus on reduction of losses, establishment of reliable and automated system for collection of accurate base line data and the adoption of Information Technology.

“The gross budgetary support of Rs 28,424 crore was envisaged for the scheme in the XI and XII plan periods (2008–17). Against this, ministry of Power had actually budgeted Rs 12,415.04 crore during 2008-09 to 2014-15 which was only 43.68 percent of the envisaged amount.

“R–APDRP scheme has been subsumed in Integrated Power Development Scheme since December 2014 and no separate budget for R–APDRP has been allocated after 2014–15. The actual releases during 2008–15 on R–APDRP scheme were only Rs 8,175.45 crore implying slow pace of scheme implementation,” said a CAG report.

The report said that counterpart funding was not tied up by many state utilities implementing the scheme within the prescribed period. Audit noticed that Power Finance Corporation did not maintain records of counterpart funding raised by the utilities from financial institutions. Also, instances of diversion of R-APDRP funds and overlapping of schemes were noticed in some states.

R-APDRP was launched in December 2008 as a continuation of the Accelerated Power Development and Reforms Programme (APDRP) in the XI Plan period. The programme envisaged sustainable reduction of Aggregate Technical and Commercial (AT&C) losses, establishment of reliable and automated system for collection of accurate base line data and the adoption of Information Technology in the area of energy accounting as necessary preconditions for sanctioning distribution strengthening projects.

The scheme also aimed to map all power distribution assets, index and meter all consumers to ensure that electricity supplied can be traced to the ultimate consumer thereby resulting in better billing efficiency.

Regarding programme implementation, CAG noticed that there were delays ranging up to 13 months in finalization of preparatory activities for implementation of the programme.

“Detailed Project Reports were not prepared in line with the Model Detailed Project Report, resulting in inclusion of inadmissible items of work and exclusion of required items of work in the scope of the project. Assumptions made during project formulation were not independently verified during appraisal. Instances of revision in cost of the projects without approval of the Steering Committee were noticed. In some cases, the Detailed Project Reports were appraised and approved by the Steering Committee without recommendation of State Distribution Reforms Committees in contravention of the prescribed procedure.”

It added that additional expenditure due to re-tendering and award of works to contractors at different rates for similar items of work being executed in a state were observed.

“Deficiencies in quality controls like procurement of material in deviation of specifications, failure of the items/systems leading to delay in completion of the projects and not obtaining suitable guarantees were noticed.  The efforts made to impart training to the staff of the utilities were inadequate and the purpose of training of staff was not achieved.”

Read the complete report here

Comments

 

Other News

Urban Blind Spot: Animals, governance, and the cost of ignoring coexistence

India’s cities are expanding at an unprecedented pace, absorbing people, infrastructure, and economic activity at scale. What urban governance frameworks have been slower to absorb is a reality already playing out on the ground: animals are an inseparable part of urban life. From community dogs and p

How India uses AI in the field of culture and languages

* India is institutionalising AI for culture and languages through national platforms such as BHASHINI, Anuvadini, Gyan Bharatam and Adi Vaani etc. * AI is being used to make cultural and knowledge assets usable by digitisation of manuscripts, translation of academic content, and in

India improves position on Network Readiness Index

India has improved its position by four slots and is now placed at 45th rank in the Network Readiness Index 2025 (NRI 2025) report prepared by Portulans Institute, Washington DC.   The report, released on February 4, maps the network-based readiness landscape of 127 economies based on th

Framework for India-US Interim Agreement announced

India and the United States on Saturday announced they had agreed on an interim framework for an interim trade agreement, indicating a broad roadmap of the opening of the markets and reduction in trade tariffs on both sides. In a message on X, prime minister Narendra Modi said, “Great

India’s quiet rise as the world’s `Third Pole`

A silent re-calibration is going on in the international system, which is becoming more polarized, volatile, and entered of spheres of influence. The world does not evolve in the new era of bipolar competition of the United States and China, nor does it evolve on the setback of Russia in the role of a spoi

‘Tariff king’ to trade partner: Why Trump’s sudden U-turn surprises India

On February 2 at around 10 PM, Sergio Gor, who had become US ambassador to India just three weeks ago, posted a cryptic message on his official handle on X, stating, “President Trump just spoke with Prime Minister Modi. STAY TUNED….” This created a buzz across media in India as the two l


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter