CAG begins performance audit of fuel linkages for IPPs

The office of the Comptroller & Auditor General of India (CAG) has initiated the process of performance audit on ‘Fuel Linkages to Independent Power producers (IPPs)’.

The performance audit will cover a period of five years from 2009-10 to 2013-14. The audit work is being taken up by H R Biswal, senior audit officer at the office of the Accountant General, Bhubaneswar. The scope, coverage, audit objectives, criteria and tentative time schedule will be discussed in an entry conference with the state officials scheduled on September 27.

“Necessary instructions may be issued to the concerned officers of your department and PSUs like Gridco and Odisha Power Transmission Corporation Ltd (OPTCL) to provide records such as registers, files and annual reports as and when requisitioned and to extend full cooperation to the audit team for smooth conduct of the performance audit. I would also request you to furnish replies to all the preliminary observations issued during the audit at the earliest so that the department's views on the points raised can be considered while finalising the report”, Sunil S Dadhe, principal accountant general (economic & revenue sector audit) wrote to Suresh C Mohapatra, principal secretary (energy), Odisha.

The state government has signed memorandum of understanding (MoU) with 28 IPPs, envisaging a total generation capacity of 37,510 Mw with the state share being 5,887 Mw.

Till date, three IPPs have commissioned thermal power capacity of 4,050 Mw, the state being entitled to a share of 947 Mw power from these commissioned units. The proponents to have put their units on stream include Vedanta Group firm Sesa Sterlite (2,400 Mw) at Bhurkamunda nea Jharsuguda, GMR Kamalanga (1,050 Mw) at Kamalanga near Dhenkanal and Jindal India Thermal Power Ltd (600 Mw) at Dernag near Angul. JITPL is likely to commission another 600 Mw unit by the end of 2015. By that period, three more IPPs are expected to commission their projects- Ind Barath Energy (Utkal) Ltd (700 Mw), Monnet Power (1,050 Mw) and Maa Durga (60 Mw).

Coal blocks have been allocated to 10 IPPs while 10 others have obtained coal linkages. But none of the coal blocks allocated to the power producers has been able to commence mining due to delay in obtaining the necessary clearances.