CAG raps power distribution firms for increased loss

Hindustan Times
Chandigarh, February 24, 2012

The Comptroller and Auditor General of India (CAG) has pulled up the two state power distribution companies Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) for increased losses and operational inefficiency. In a report tabled in the Haryana Assembly here today for the year 2010-11, the auditor found that the financial health of both these power utilities were in a mess with accumulated losses R6,127 crore, up from R1,774 crore, due to heavy interest on loans, aggregate technical and commercial losses and increase in employee cost.

With regard to the central scheme — Rajiv Gandhi Grameen Vidyutikaran Yojna —the report highlighted that UHBVN incurred expenditure in excess of funds received, while DHBVN could not fully utilize the funds.

Moreover, there were inordinate delays in completion of projects under this scheme which envisages providing power connection to BPL households in rural areas.

The two companies also faced wrath of CAG for the huge increase in revenue gap from R403 crore in 2006-07 to R1,663 crore in 2009-10.

The bill collections efficiency of UHBVN and DHBVN also came under fire, with CAG finding outstanding dues from customers rising considerably.

The amount recoverable from consumers in case of UHBVN increased from R1,482 crore to R2,377 crore and for DHBVN from R1,388 crore to R2,250 crore during 2006-07 till 2010-11, according to the report.