Mismanagement coupled with lackadaisical approach of Power Development Corporation (PDC) has caused revenue losses and fiscal liabilities to Jammu and Kashmir's star public sector undertaking (PSU), Comptroller and Auditor General of India says.
As per CAG report, failure of the authorities to fix the power generation and distribution system in the state is costing state exchequer heavily.
"Delay in completion of renovation (projects), modernisation and updating of the system has resulted in loss of generation of 33.85 MUs valuing Rs 6.77 crore annually in BHEP-I. Delay in undertaking repairs and maintenance of Hydro Electric Projects led to loss of generation to the extent of 7,91,630 hours resulting in low power generation," says the report.
"There was delay in receipt of plan funds and power dues of Rs 2808.8 crore were pending from the state government resulting in dependence on loans from financial institutions and extra interest burden of Rs 58.24 crore," it adds.
Statutory liabilities on account of water usage charges and labourcess accumulated to Rs 1,573.19 crore, the CAG report says.
The management of the company is vested with the Board of Directors with the chairman as its head. The day to day operations are carried out by the managing director assisted by executive director (Civil), executive director (Electrical), director finance, senior general manager (Law), company secretary and administrative officer.
However, the company as per the report has not made any long term plan for implementation of power projects in the state.
The report states that failure of the company to provide requisite information to the JKSERC led to non-inclusion of income tax of Rs 96.96 crore in tariff fixation. "Due to non-achievement of design energy, the company was not able to recover expenditure of Rs 275.85 crore through tariff."
PDC is a state government owned company with main objective to plan, execute, operate and maintain all generating stations under state sector.
However, the company failed to achieve status of mega power project in respect of BHEP-II due to which benefit of Rs 105.80 crore could not be availed.
The company had not achieved design energy, except in BHEP-I, leading to loss of generation of 2520 MUs during 2011-2016, it reads.
There was low Plant Load Factor ranging between 22 percent and 29 percent, low Plant Availability Factor between 64.34 percent and 76.66 percent and excess forced outages over Central Electricity Authority.