CAG pulls up TANGEDCO for ‘extra expenditure’

When SHEP’s 35 MW unit II tripped due to rotor earth fault on January 12, 2013, the Corporation issued a letter of approval (LOA) to a private contractor on May 14, 2013, to rectify it at an estimated Rs 3031 lakh. But the latter instead of completing the work in 60 days as mandated, concluded the work and re-energised the project after 173 days on November 30, 2013.

Though the June – December period is the peak irrigation period for the project, 10, 438 million cubic feet of water was let out during the fault period without generating power leading to a loss in generation of 80.04 million units, according to the report. 

The CAG audit discovered that though TANGEDCO issued the tender notice within seven days, it took seven months to finalise the single offer without any valid reason. Though the LOA was issued on May 2013, the corporation delayed handing over the site by a month and when the work was being executed, it took another 37 days to approve the additional costs. While the corporation blamed the contractor for an unwarranted delay of three months, it failed to explain why it allowed a time extension of 144 days after the work was completed in November that year.

The Corporation further purchased power from private parties at Rs 5.80 per unit whereas SHEP’s power production cost was pegged at 21 paise per unit leading to an avoidable extra expenditure of Rs 44.74 crore for the corporation, the audit report said.