The Friday ruling of Delhi High Court in which it took a serious note of the observations made by the Comptroller and Auditor General’s report on power privatisation process here could force the government to answer some serious questions.
The CAG in its report for 2002-03 had indicated that the state has suffered a loss of over Rs 6,000 crore due to decisions take during the unbundling of the Delhi Vidyut Board (DVB).
The report had pointed that there was a significant dilution of the transmission and distribution (T&D) loss targets.
This alone, according to the CAG, had caused a loss of Rs 3,928.70 crore. The report also questioned the process of choosing consultant to map the privatisation process in Delhi and pointed that the details of asset valuation were not made available to the auditors themselves.
According to the report, the government received bids from Hyderabad’s Administrative Staff College of India (ASCI), SBI Caps and ICICI for consultancy work but SBI Caps was appointed without an attempt to assess and define the scope of work.
‘‘Transco raised a bill of Rs 77.47 crore for stores transferred to discoms but could not realise any amount so far.
Further, Rs 2.06 crore worth of scrap/dead items recoverable from discoms were not taken into account,’’ said the report. The report has also raised objections over the selection of consultants and amount recovered from private companies by Transco for stores and material.
The CAG report had reviewed the process of unbundling DVB, the modalities of transfer of assets, reduction of technical and distribution losses, the rationality of incentives provided and the impact of various assumptions on tariff. Delhi government had privatised the distribution of power in 2002 .
The CAG in its report for 2002-03 had indicated that the state has suffered a loss of over Rs 6,000 crore due to decisions take during the unbundling of the Delhi Vidyut Board (DVB).
The report had pointed that there was a significant dilution of the transmission and distribution (T&D) loss targets.
This alone, according to the CAG, had caused a loss of Rs 3,928.70 crore. The report also questioned the process of choosing consultant to map the privatisation process in Delhi and pointed that the details of asset valuation were not made available to the auditors themselves.
According to the report, the government received bids from Hyderabad’s Administrative Staff College of India (ASCI), SBI Caps and ICICI for consultancy work but SBI Caps was appointed without an attempt to assess and define the scope of work.
‘‘Transco raised a bill of Rs 77.47 crore for stores transferred to discoms but could not realise any amount so far.
Further, Rs 2.06 crore worth of scrap/dead items recoverable from discoms were not taken into account,’’ said the report. The report has also raised objections over the selection of consultants and amount recovered from private companies by Transco for stores and material.
The CAG report had reviewed the process of unbundling DVB, the modalities of transfer of assets, reduction of technical and distribution losses, the rationality of incentives provided and the impact of various assumptions on tariff. Delhi government had privatised the distribution of power in 2002 .
Via: India Economic Times
