Sanjeev K Sharma
JAMMU, Apr 3 : The Comptroller and Auditor General of India (CAG) has claimed failure of J&K State Power Development Corporation (J&KSPDC) Limited to execute work under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) as per the approved cost which led the Corporation to financial loss of Rs 1.92 crore. Not only this, J&KSPDC even failed to get Rs. 4.67 crore from Rural Electrification Corporation (REC) since 2014-15.
RGGVY was launched in April 2005 by the Government of India through REC to provide electricity connections free of cost to below poverty line households.
The CAG in its annual report tabled on March 24, 2021 in Parliament stated that the scheme (RGGVY) was to be executed in seven districts-Anantnag, Baramulla, Rajouri, Poonch, Doda, Pulwama and Kupwara of J&K by J&KSPDC (Company) which after inviting tenders awarded contract in December 2009 in three of these districts to M/s Pir Panchal Construction Pvt Ltd Joint Venture (contractor) and the work was required to be completed in 12 months from the date of issue of Letter of Intent.
The company received Rs 156.57 crore from REC for the project.
The work was completed with delays ranging between 38 and 49 months from the scheduled date of completion, incurring a total expenditure of Rs. 164.71 crore out of which the company incurred an expenditure of Rs. 109.46 crore in respect of RGGVY projects of Rajouri and Poonch districts.
“The closure proposals of projects of Rajouri and Poonch districts were approved by REC for Rs. 105.99 crore,” the CAG reported in its annual document adding that the RGGVY works in Doda district was closed in January 2015 after incurring an expenditure of Rs. 55.25 crore by the Company and the closure proposal was yet to be approved by REC (as on July 2020).
Audit scrutiny of the records in May 2017 revealed that the reasons for delay as recorded in the reply of the company included, inter alia, delay in tendering process, Right of Way (RoW) issues, public hindrances during execution, inclement weather and snow prone or inaccessible areas etc.
The report further mentioned that the company had incurred an expenditure of Rs. 164.71 crore against the amount of Rs. 156.57 crore received from REC.
“The closure proposal in respect of RGGVY projects of Rajouri and Poonch districts on which company had incurred the expenditure of Rs. 109.46 crore were approved by REC for Rs. 105.99 crore. After taking into account the value of surplus inventory of Rs. 1.55 crore transferred or recoverable from JKPDD the company had to bear financial loss of Rs. 1.92 crore due to expenditure beyond the approved cost,” the CAG report maintained.
In addition to this, in the closure proposal of Rajouri only Rs 79.76 crore had been received from REC so far against the approved amount of Rs. 80.34 crore thereby resulting in non-receipt of Rs. 0.58 crore.
The closure proposal of RGGVY work in Doda district was not approved by REC despite a lapse of 64 months from the date of closing of work (January 2015) by the company.
The report also stated that on May 2017, audit noticed that the work in respect of Doda district was not completed due to non availability of alternate land after landslide at the earmarked site and for want of forest clearance. Final expenditure of Rs 55.25 crore in Doda district had been booked by the Company against which REC released funds amounting to Rs. 51.16 crore, resulting in non-receipt of Rs. 4.09 crore. Further, an amount of Rs. 1.18 crore remained recoverable from JKPDD in respect of surplus inventory transferred.
The Chief Engineer, Generation Wing Jammu in his reply on July 2020 stated that the closure proposal of Doda project is pending as the five receiving stations (33/11KV) constructed by the contractor have not been handed over to the concerned utilities so far. It was also stated that the surplus material handed over to PDD had not been approved by REC but was procured by the company out of its own resources to be recovered from PDD.
The CAG claimed that the reply is not tenable as the company had incurred excess expenditure in Rajouri and Poonch projects beyond approved financial cost accorded by the REC, which has led to financial loss of Rs. 1.92 crore. Besides, the company had not completed the works of Doda project and could not receive the amount of Rs. 4.67 crore (Rajouri: Rs 0.58 crore, Doda: Rs 4.09 crore) from REC since 2014-2015.
The matter was referred to the company in May 2020 and the replies were awaited as on September 2020.
The CAG recommended that the company/Government should ensure timely execution of work within the approved cost.
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