CAG indicts MPSEB for T and D loss

Bhopal, Mar 30 (UNI) The Comptroller and Auditor General (CAG) of India has indicted the Madhya Pradesh State Electricity Board (MPSEB) for transmission and distribution loss far exceeding the acceptable level.

''Transmission and distribution loss of the Board ranged between 45.57 and 42.62 per cent during five years ended March, 2005 as against the acceptable level of 15.5 per cent, resulting in loss of potential revenue to the tune of Rs 9,397.47 crore,'' said the CAG Report (Commercial) for the year ending March 31, 2006 presented in the Assembly.

The MPSEB had no uniform policy of checking consumers' service connections and the checking percentage varied between 4.06 and 46.95 in different regions, the report said.

Out of the total demand of Rs 390.12 crore on account of value of theft of power detected, Rs 93.82 crore -- representing 24.05 per cent -- were pending realisation, it added.

During five years ending March, 2005, as against 10,413 cases of theft of Board property -- involving Rs 25.15 crore -- the MPSEB filed first information reports in respect of 4,328 cases only representing 41.56 per cent of the total theft cases, the report pointed out, adding that the Board could recover stolen property worth Rs 8.63 lakh only, representing 0.34 per cent of the total value of theft.

Regarding procurement of material and implementation of transmission and distribution schemes under an Asian Development Bank-funded project, the CAG report said, ''Improper planning in procurement of conductors resulted in excess procurement of material and locking up of funds amounting to Rs 3.91 crore for two years and consequential loss of interest of Rs 82.11 lakh.'' The MPSEB granted extension of delivery periods to defaulting suppliers without imposing liquidated damages valuing Rs 93 lakh.

Due to delay in commissioning of various lines and substations, the Board could not derive the envisaged benefits in reduction of sub-transmission losses.

Advance procurement of transmission and sub-transmission material worth Rs 67.45 crore and distribution material worth Rs 27.22 crore resulted in blockage of funds totalling Rs 94.67 crore, the CAG pointed out.

The MPSEB had to incur extra expenditure of Rs 2.81 crore due to placement of orders for identical items at different rates under different packages of the same tender.

The CAG also pointed out that non-commissioning of a fire protection system and consequent blockage of Rs 3.36 crore resulted in loss of interest of Rs 1.28 crore, while failure to scrutinise freight bills and delay in raising refund claims resulted in excess expenditure of Rs 2.86 crore on transportation charges.

Non-adherence to the tariff order resulted in under-billing of electricity charges and consequent revenue loss of Rs 1.10 crore.

Non-invoking of the 'risk and cost purchase' clause and acceptance of improper security deposit resulted in extra expenditure of Rs 70.06 lakh and non-recovery of dues of Rs 38.67 lakh, the report added.

UNI