Patna, July 22: Bihar State Electricity Board (BSEB) has come under sharp criticism from Comptroller and Auditor General (CAG) that keeps tab on the finances of Union and state governments, for incurring losses that run into crores because of its inefficiency and mismanagement.
“Heavy capital expenditure coupled with interest commitment on loans without adequate returns because of delay in commercial operation of the plants caused significant increase in cost of operations. The top management did not take corrective measures to ensure adherence to norms/targets in respect of input efficiency parameters,” CAG in its report, which was tabled in the just concluded monsoon session of Assembly, said.
On the one hand, the board may be crying for financial assistance from the government and its agencies to carry out its activities in a better manner, on the other, CAG has pointed out that it has been losing revenue because of non-adherence to rules as prescribed by the commission.
The board has been imposing fuel surcharge on a monthly basis to cough up more revenue instead of putting its house in order.
The board suffered a loss of Rs 52 lakh due to incorrect categorisation of the consumers as per the tariff provisions, the report said while explaining that rural consumers getting electricity from urban feeders were wrongly categorised.
Unnecessary purchase of underground cable by the board resulted in blocking of fund of Rs 3.35 crore and consequential loss of interest of Rs 1.41 crore, the report said, adding that this indicated that the materials were purchased without requirement and purpose.
Another Rs 5.21 crore was a revenue loss because of non-adherence to the tariff provisions. “We observed that (during August 2009 to January 2010) three hight-tension (industrial) consumers in three circles Gaya, Ara and Motihari were found to be using transformers of higher than capacity approved by the board,” the report said.
The board should strengthen its internal control mechanism to avoid such loss in near future, the report said, adding that the matter was reported to the board and government but their replies are still awaited.
In absence of any agreement with coal companies, BSEB paid Rs 6.29 crore for procurement of 0.43 lakh metric tonne of inferior coal, which was a loss to the board. Similarly, on account of excess consumption of coal during 2005-10, BSEB incurred an excess expenditure of Rs 48.71 crore.
Delay in finalisation of tender by the Bihar State Hydroelectric Power Corporation Ltd (company) in three projects reviewed in audit led to increase in project cost by Rs 7.06 crore. The auditor said there was no addition in thermal capacity between 2005-10 whereas hydroelectric corporation added 8.7MW during the same period.
BSEB’s transmission and distribution loss for 2007-08 was 39.06 per cent, which has reduced to 37.98 per cent in the following fiscal.
Energy audit could not be implemented till September 2010, as metering of all electricity connections has not been completed.
Against the cent per cent metering of 11 KV feeders and consumers, the board could achieve just 71.22 per cent in 11 KV distribution feeders and 62.45 per cent of consumers in all 16 circles, the CAG report said.
