Srinagar: The J&K Government-owned Power Development Corporation has been found to be bleeding losses as a result of failure of completion of several projects in Jammu and Kashmir.
According to the Comptroller and Auditor General of India (CAG), the J&K State Power Development Corporation (J&KSPDC) has suffered a loss of Rs 1.92 crore as a result of failure to execute work under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). The Corporation also failed to get Rs 4.67 crore from the Rural Electrification Corporation (REC) since 2014-15 because of lack of execution of work.
Launched in April 2005, RGGVY was aimed to provide electricity connections free of cost to below-poverty line households. The scheme, as per the CAG, was to be executed in Anantnag, Baramulla, Rajouri, Poonch, Doda, Pulwama and Kupwara, in December 2009 through a contractor with the condition that it would be completed in 12 months from the date of issue of Letter of Intent. The government released Rs 150 crore instantly. But there were delays of between 38 and 49 months. An expenditure of Rs 164.71 crore against the amount of Rs 156.57 crore received was incurred by the REC.
The CAG said that an audit scrutiny in May 2017 revealed that the delay was caused by delay in tendering process, Right of Way (RoW) issues of public hindrances during execution, inclement weather and snow-prone or inaccessible areas. An instance in this case was that of Doda where a lapse of 64 months was found from the date of closing of work (January 2015) by the company. It also said that the work in Doda district was not completed due to unavailability of alternate land.
As if the said reasons were not enough, the CAG stated another reason – that the construction of five receiving stations (33/11KV) was not handed over to the utilities concerned. It was also stated that the surplus material handed over to PDD had not been approved by REC but was procured by the company out of its own resources, the expenses for which are to be recovered from the PDD.
The CAG has reported that the corporation also incurred excess expenditure in Rajouri and Poonch projects beyond approved financial cost accorded by the REC, which has led to financial loss of Rs 1.92 crore. It also said that the company had not completed the works of Doda project and could not receive the amount of Rs 4.67 crore (Rajouri: Rs 0.58 crore, Doda: Rs 4.09 crore) from REC since 2014-2015.
Worse, the company has not answered the queries of the CAG for four months, it added.