The Comptroller and Auditor General (CAG) of India has pulled up four central public sector enterprises for delaying the execution of 16 hydropower projects, which led to cost overruns of Rs 14,707 crore. In seven projects that were executed, cost overruns stood at 53-148 per cent.
A CAG report stated while “geological surprises” were the main reason for the delay, factors that could be controlled, such as delay in handing over access roads to contractors and wrong assessment of land requirements, also delayed projects. The four companies audited by CAG were NHPC, Satluj Jal Vidyut Nigam, North Eastern Electric Power Corporation and Tehri Hydro Power Complex.
The report said, the four PSU’s plans for 11,813-Mw capacity addition during the 11th Plan period were prepared without “due diligence”.
Though the target was later scaled down to 6,794 Mw, CAG stated these companies could achieve capacity addition of only 1,550 Mw. “Besides, these CPSEs (central public sector enterprises) are likely to add only 3,774-Mw capacity in 12 projects in the 12th five-year Plan, against 14,535 Mw in 33 projects envisaged in the Hydro Power Policy 2008,” it added.
The report recommended the power ministry coordinate with the state government authorities concerned to monitor the progress of projects and ensure their timely completion. “Desirability of a high-powered committee chaired by secretary (power), with members from other nodal ministries or state governments, as a single-window mechanism to monitor and expedite the process of necessary clearances should be explored,” it stated.
The auditor stated NHPC, SJVNL and THDC could complete pre-investment approval activities within 30 months, as stipulated by the power ministry, in only two of the 14 projects. “While there was a marginal delay of up to six months in completing these activities in five projects, delays ranged up to 50 months in the remaining seven projects,” the report read.
CAG stated companies should ensure adequate survey and investigation before preparing detailed project reports and prepare their long-term plans in line with the government’s hydro policy.