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Rural electrification turns out to be ‘white elephant’
JK loses Rs 1.92 cr, Rs 4.67 cr not received
4/6/2021 11:26:00 PM
Peerzada Ummer

Early Times Report

Jammu, Apr 6: For the past seven years the Jammu and Kashmir State Power Development Corporation Limited (JKSPDC) has failed to execute work under Rajiv Gandhi Grameen Vidyutikaran Yojana as per the approved cost. This has led to financial loss of Rs 1.92 crore, besides, non-receipt of Rs 4.67 crore from the Rural Electrification Corporation since 2014-15.
According to the documents in possession of Early Times Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) was launched in April 2005 by the Government of India (GoI) through Rural Electrification Corporation (REC) to provide electricity connections free of cost to below poverty line households. The scheme was to be executed in seven districts: Anantnag, Baramulla, Doda, Poonch, Pulwama, Kupwara and Rajouri by the JKSPDC. The corporation after inviting tenders awarded contract in December 2009 in three districts to M/s Pir Panchal Construction Pvt. Ltd. Joint Venture. The work was required to be completed in 12 months from the date of issue of Letter of Intent. The works, as per the documents, were 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 this expenditure of Rs 164.71 crore, the JKSPDC had 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 RGGVY works in Doda district was closed in January 2015 after incurring an expenditure of Rs 55.25 crore by the JKSPDC. Records reveal further that the reasons for delay included, inter alia, delay in tendering process, Right of Way (RoW) issues, public hindrance during execution, inclement weather and snow prone or inaccessible areas etc. The JKSPDC had incurred an expenditure of Rs 164.71 crore against the amount of Rs 156.57 crore received from REC as indicated in the Table 7.4.2 above. The closure proposals in respect of RGGVY Projects of Rajouri and Poonch districts on which JKSPDC 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 Jammu and Kashmir Power Development Department (JKPDD), the JKSPDC had to bear financial loss of Rs 1.92 crore due to expenditure beyond the approved cost. 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 proposals of RGGVY works in Doda district was, however, not approved by REC despite a lapse of 64 months from the date of closing of work (January 2015) by the JKSPDC. Furthermore, the work in respect of Doda district was not completed due to non-availability of alternate land after land slide 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 JKSPDC 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 is recoverable from Jammu and Kashmir Power Development Department in respect of surplus inventory transferred.
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