Annual loss of discoms mounts to over Rs 60k crore in UP: CAG
The accumulated loss suffered by power distribution companies in Uttar Pradesh increased to Rs 60,101.98 crore in 2013-14 from Rs 33,600 crore in 2011-12, the CAG said in its latest audit report.
Slamming the Uttar Pradesh Power Corporation Limited, the Comptroller and Auditor General of India in its report on public sector undertakings said the UPPCL failed to improve the financial health of these discoms because of incorrect ascertainment of the eligible short term liabilities. This led to drawing of larger amount of short term loans of Rs 9,182.46 crore by UPPCL from banks and financial institutions which overburdened the discoms to the extent of Rs 4,591.23 crore with liability of interest of Rs 843.64 crore payable thereon during the 2013-14 and 2014-15, the CAG report for the year ended March 31, 2015 said.
The report, tabled in the UP Assembly, said that in violation of mandatory conditions of the scheme, the state government did not release the arrears of the subsidy of Rs 10,445.29 crore and electricity dues of Rs 1,131.26 crore as on March 31, 2012 to the discoms.
It also said that non-compliance of mandatory conditions by the UP government, UPPCL and discoms led to ineligibility of the state government for capital reimbursement support of Rs 3,952.59 crore from the Centre.
Besides, non-reduction in the gap between average cost of supply and average revenue realised during 2012-13 and 2013-14 by the discoms deprived them of incentive for liquidity support of Rs 1,377.76 crore from the Centre. In its performance audit on construction of bridges by Uttar Pradesh State Bridge Corporation Limited, the CAG report said out of 740 bridges, the company completed 509 bridges during 2009-10 to 2014-15 and 231 bridges were under construction at the end of March 2015.
Out of 88 test checked bridges in eight zones, there was cost overrun of Rs 438.09 crore in 53 bridges, it said.
Besides, funds of Rs 360 crore to Rs 688 crore remained idle during 2009-10 to 2014-15 and 43 to 64 per cent of total number of units of the company were not financially viable due to inadequate turnover, it said.