Millennium Post

CAG had daunting time evaluating discom data

Sources said the documents have over 25 points, which were agreed to by CAG in terms of audit reference. The challenges were to audit “whether the capital expenditure was incurred in a transparent and competitive manner and all financial norms were followed before making such expenditures under capital projects executed by DISCOMs or not”. In the consumer billing section, the entire audit trail from consumer meter to bill and to cash received to bank account, in which it was deposited, were evaluated with much difficulty due to the non-availability of “missing figures” and some documents.

The other major challenges were whether there was any case of revenue receipts not being taken on the books and <g data-gr-id="29">siphoned-off</g> to other accounts and whether the accounts submitted to IT department and the Delhi Electricity Regulatory Commission (DERC) are consistent.

It was <g data-gr-id="40">learnt</g> that the CAG while going through the documents found some discrepancies in “losses”, which were projected by the <g data-gr-id="37">discoms</g> and files based on IT returns. Earlier, before the audit, three private power distribution companies – BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and North Delhi Power Limited (NDPL) – had projected an accumulated loss of Rs 20,000 crore, also called regulatory assets, between 2002 and 2013-14.

With the claim made by <g data-gr-id="32">discoms</g>, CAG while going through “accumulated loss” has raised questions on whether the figure projected in DERC statutory advice is justified or it is arbitrary.

On January 9, 2014, the audit was started and in a less than one-and-a-half year, the report is almost ready to be placed before the government.

Delhi CM Arvind Kejriwal has claimed that the audit will expose financial irregularities of the private companies and promised to make a case for <g data-gr-id="34">reduction</g> in power rates. Later, the Supreme Court ruled that the CAG has the right to audit <g data-gr-id="31">discoms</g>, which was widely praised by the leaders of Aam Aadmi Party (AAP) leaders.
Sujit Nath

Sujit Nath

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