- News Updates
- PSU Watch
- Defence News
- Policy Watch
- हिन्दी न्यूज़
- Jobs Watch
- States News
- Event News
New Delhi: From delays in awarding projects and early payments to contractors to submission of unapproved detailed project reports (DPRs), the Comptroller and Auditor General of India (CAG) has found major gaps in the implementation of the government’s flagship power sector schemes — SAUBHAGYA and DDUGJY — and has pulled up the implementing agency REC Limited.
The findings are part of the Performance Audit of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), which was presented in Parliament on Thursday, the CAG said in a statement issued to the media.
Launched in 2014, DDUGJY aimed to increase hours of power supply to non-agricultural consumers and ensure assured supply to agricultural consumers, strengthen rural distribution networks, and complete ongoing rural electrification works under the erstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).
The CAG found that “there was delay in award of work in 494 projects (81.65 per cent) out of 605 projects in 24 States and two UTs.” It also flagged delays in conducting village inspections, non-identification of model quality villages, and deficiencies in compliance with Quality Assurance Mechanism Guidelines.
The State Level Standing Committee (SLSC), responsible for recommending DPRs for approval and monitoring progress and quality, failed in several instances, with DPRs being submitted to REC without SLSC recommendations. The audit further noted that DPRs were not based on detailed field surveys and were found to have under or over-estimation of quantities related to village and household electrification, feeder separation and system strengthening.
On the financial front, the CAG observed that REC released grants of Rs 541.56 crore to six out of 27 states and three UTs as first instalments between 13 and 360 days prior to execution of tripartite or bipartite agreements and appointment of project management agencies.
Additionally, early payments of Rs 1,603.81 crore were made to six states without ensuring timely infusion of the state governments’ contribution into the projects.
The SAUBHAGYA scheme was launched in October 2017 to provide last-mile connectivity and electricity connections to all un-electrified households, with an estimated target of 300 lakh households.
The SAUBHAGYA dashboard claimed 100 percent achievement of the electrification target upon electrifying 262.84 lakh households by March 2019. However, the audit found that only 151.60 lakh households were electrified under SAUBHAGYA out of the claimed total.
All 25 participating states declared 100 percent household electrification between November 2018 and March 2019. However, audit analysis showed that the estimated number of households for electrification displayed on the dashboard was reduced from 300 lakh in the scheme guidelines to 248.48 lakh, enabling the declaration of 100 percent achievement by March 2019.
Seven states reported 19.10 lakh un-electrified households as of March 31, 2019, leading the CAG to state that it “could not ascertain genuineness of electrification of households.”
The audit also found that discoms submitted DPRs without conducting field surveys, with all 36 participating discoms across 24 states submitting DPRs with delays ranging from 71 to 418 days, delaying review and sanction by the monitoring committee.
In two states, 16,728 households were released connections under both DDUGJY and SAUBHAGYA, resulting in duplicate claims for the same work. Despite receiving grants under DDUGJY, discoms also claimed Rs 7.53 crore from REC under SAUBHAGYA, leading to double payment.
Instances of undue benefits to contractors, including payments without ensuring completion of work and double payments, amounting to Rs 2.24 crore were also identified.
On SAUBHAGYA’s financial management, the CAG noted that REC raised Rs 500 crore in March 2020 through extra-budgetary borrowing, of which only Rs 95.65 crore was spent up to March 2021, leaving Rs 404.35 crore unutilised. The borrowing was raised even though Rs 352.32 crore was already lying with REC.
According to the audit, this inadequate assessment of fund requirements resulted in an avoidable interest burden of Rs 15.97 crore on the Ministry of Power.
The CAG also flagged that, against a reimbursement limit of project management agency (PMA) charges of 0.5 percent of project cost under similar schemes, the monitoring committee allowed reimbursements of 5.43 percent in Uttar Pradesh, 1.70 percent in Rajasthan, and 1.76 percent in Assam, without any detailed analysis.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)
