Hydro power projects default on capacity utilisation, recovering dues: CAG

The cumulative outstanding dues of Rs 4,112 cr remained unrecovered from five beneficiaries by CPSEs as of 31 March, 2015

The Comptroller and Auditor General of India (CAG)'s performance audit of government-owned hydro power companies has revealed deficiencies in capacity utilisation as well as recovering dues.

According to the audit, the share of installed capacity and generation of hydro projects compared to the total installed capacity and generation was only 15.19 percent and 12.38%, respectively, as on March 31, 2015. The ideal energy mix required for optimal utilisation of installed capacity is 60% thermal and 40% hydro.

"The average capacity utilisation factor (CUF) of Bairasiul, Teesta-V, Chamera-III, and Chutak power stations of NHPC during the period covered by the performance audit were below their respective design CUFs," the report noted.

The major beneficiaries of these hydro power plants are the power distribution companies in Delhi - Tata Power Delhi Distribution Limited, BSES Yamuna Power Limited, and BSES Rajdhani Power Limited - and the power discoms in Uttar Pradesh.

The cumulative dues of ~4,112.49 crore of central public sector enterprises (CPSEs) remained unrecovered from five beneficiaries as on March 31, 2015. The CAG report said CPSEs should boost their efforts to recover dues from habitual defaulters.

According to the report, owing to inadequate flushing and non-maintenance of prescribed reservoir levels, gross and live reservoir capacities of three NHPC power stations came down during the five years ended March 31, 2014.

The CAG audit also noticed that a large number of instruments installed at dams and other structures to monitor their health were not in working condition. "The disaster management plans of all power stations selected for the performance audit except Indira Sagar power station of NHDC were not in accordance with CWC (Central Water Commission) guidelines," the report noted.

The report also urged the Union power ministry that under the national electricity policy, the ministry might coordinate with the regulator to ensure the desired action for increased monitoring and compliance with regulations.