TN power sector companies incurred Rs 13,000 Cr loss: CAG
Chennai: Increased power purchase, coal handling, financing and employee costs has resulted in the five Tamil Nadu state power sector companies incurring a loss of about Rs 13,176 crore, said the Comptroller and Auditor General (CAG) in its report for 2018-19.
According to the report tabled in the Assembly the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) last fiscal suffered an increased loss of Rs 4,862 crore mainly due to higher costs.
The CAG report has put the erstwhile ruling party AIADMK on the mat.
The CAG report said the power utility incurred an additional cost of Rs 7,396 crore in higher power purchase and generation costs.
The CAG also came down on TANGEDCO’s coal management which resulted in a wasteful expenditure of over Rs 4,000 crore during 2014-19.
According to the report, excess coal to the value of about Rs 2,317 crore was consumed in the thermal power stations owing to increased Station Heat Rate (SHR) between 2014-19 than what was stipulated by the Tamil Nadu Electricity Regulatory Commission (TNERC).
The CAG also faulted TANGEDCO for not checking out the reason for drop in the calorific value of coal which resulted in a wasteful expenditure of about Rs 2,012 crore.
The poor quality of coal has resulted in generation loss of about Rs 171 crore between 2014-19.
On the power costs, the CAG report states that TANGEDCO failed to increase the generation from its own plants and bought power from private companies at higher prices.
While the power utility did not claim liquidated damages from two power suppliers for not delivering on time, it bought power at a higher price.
The CAG also indicted Tamil Nadu Arasu Cable TV Corporation Ltd for favouring private players in procurement of set-top boxes and non-imposition of penalty for delayed deliveries.
As regards the free distribution of fans, mixies scheme, the CAG said the state incurred a loss of about Rs 124 crore in excess procurement of the consumer durables.
