CAG condemns public sector hydropower companies for delay in projects
The Comptroller & Auditor General of India (CAG) has condemned four central public sector undertakings (PSUs), including NHPC Limited, for the inordinate delay in planning and execution of hydropower projects that cost the taxpayers more than fourteen thousand crore.
The national auditor noted in his report that NHPC Ltd, SJVN Ltd, THDC India Ltd and NEEPC Ltd in delayed planning and execution of 16 hydropower projects, which led to cost overruns 53per cent to 148 per cent to Rs 14,707 crore.
The report, which was tabled in Parliament on Friday, stated, “Delay in execution of 16 projects by the four public sector enterprises resulted in revision of their initial approved cost of Rs 30,005 crore to Rs 44,712 crore.”
The report also said that the delays in the execution of the projects had its toll on the power generation target set by the government for the eleventh Five Year plan. The four public sector hydropower companies were required to add 11,813 MW of hydropower by March 2012, but they added only 1,550 MW by that time.
NHPC also welcomed the national auditor’s fury for its act of extending “undue favour” to Maytas Infra Ltd’s M/S HJV in awarding of contract and its execution. Maytas’ bid was originally set aside sue to their poor performance in Parbati-II project.
The report also said that the PSUs should have conducted adequate surveys to mitigate risks involved in their projects.
Power Minister Veerappa Moily said he would have to read the report thoroughly before commenting on the findings.