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No progress on reducing T&D loses: CAG
Poor planning, violation of guidelines renders APDRP expenditures waste
2/12/2007 10:22:34 PM


Jammu Feb 12
Poor planning and unfruitful expenditures of Rupees 312 crore spent during last three years have failed to bring about any improvement in existing 46 percent Transmission and Distribution losses in the state, are the observations of the CAG last years report about the implementation of ambitious Accelerated Power Development Reform Programme (APDRP).
The objective of APDRP was to reduce aggregate technical and commercial losses, bring about commercial viability in the power sector, reduce outages and increase consumer satisfaction.
Terming the expenditure made under the scheme as waste and ‘unfruitful’, the report says that as per the Memorandum of Understanding signed in April 2002 with the Government of India , the State Government has failed to bring down the transmission and distribution losses to 25 per cent from 46 per cent by December 2006 unsatisfactory implementation of the programme
The report further points out that due to slow and non-execution of works under some essential components, the department has failed to produce envisaged objectives as T &D losses remained static at around 46 per cent adding “while the outages far exceeded the fixed schedules, there were excessive system damages and arrears in revenue realization continue to swell.
Implementation of the programme also suffered due to irregular, unfruitful and excessive expenditures, blocking and diversion of funds, the report adds.
Showing various instances of waste full expenditures, the report says that purchase and installation of the AMR system without seeking prior approval from the Standing Advisory Committee for Radio Frequency Allocation (SACFA) for construction of towers and absence of dedicated telephone lines for the system rendered the expenditure of Rupees 1.07 crores unfruitful.
Interestingly, 847 Feeder meters purchased on exorbitant rates during National Conference Government are still idle due to non-procurement of required Current and Potential Transformers, rendering the expenditure of Rs 1.60 crore as useless.
Similarly, owing to failure to take timely action for procurement of adequate number of meters, the objective of proper energy accounting was not achieved as against the target of metering 9,87,873 consumer installations, only. 64,255 meters (7 per cent) had been installed till March 2006.
Pointing out poor accounting the report said that while separate accounts were required to be maintained by the utilities responsible for implementation of the programme the test check of 10 Utility Divisions revealed that no separate cash books and stock accounts in respect of the programme funds were maintained. In the absence of these accounts the transactions accounted for could not be vouchsafed, the report adds.

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