Name nodal officers to aid in audit, discoms told

The issue of CAG audit of Delhi discoms would be heard by the Delhi High Court on January 22

The Comptroller and Auditor General of India (CAG) has asked the three private power distribution companies (discoms) in Delhi - BSES Yamuna Power, BSES Rajdhani Power and Tata Power Delhi Distribution - to appoint a nodal officer to aid the process of audit of their accounts, which is likely to start soon.

"The CAG has written to the discoms today (Tuesday) asking for appointment of a nodal officer for each of the three companies who will coordinate with the government's nodal officer," said an official close to the development. From the Delhi government side, Ankur Garg, additional secretary in the power department, has been appointed as the nodal officer.

Earlier this week, the national auditor had asked the state government for all available financial records of the firms. According to Delhi Chief Minister Arvind Kejriwal, the audit would expose financial irregularities creating the case for a tariff reduction.

The high court had on Monday allowed the CAG to audit five major private telecom companies. The decision was seen by legal experts as bolstering Kejriwal's demand for an audit of private discoms. However, unlike the Delhi discoms, the telcos have a revenue-sharing arrangement with the government.

Also, in its order on audit of telecom companies' financials, the court had stuck to only receipts (or revenue earned) of the companies, and not the expenses, as the government's income from telecom operators is linked to telcos' revenues. The issue of CAG audit of Delhi discoms is under the consideration of the Delhi High Court, which will hear the case on January 22.