No speedy action in Puducherry to implement Energy Conservation Act: CAG

The Comptroller and Auditor General (CAG) on Thursday criticised Renewable Energy Agency Puducherry (REAP) for not taking speedy action to implement Energy Conservation Act in the Union Territory to achieve energy conservation and efficiency as envisaged.

CAG report relating to government for the year ended March 31, 2015, tabled in the Assembly by Chief Minister V Narayanasamy said "recommendations of energy audits and annual energy saving plans were not implemented and anticipated energy saving did not accrue".

It said shortfalls and delays were noticed in implementation of energy conservation and efficiency schemes and REAP did not conduct necessary awareness programmes to educate the public about the importance of renewable energy.

It said application of incorrect rate of tax in respect of inter-State sale not covered by declaration form resulted in short levy of tax of Rs 20.69 lakh.

On implementation of environmental laws, it said a performance audit on it showed no comprehensive programme for prevention, control or abatement of pollution. There were delays in issue of consent renewal order for industries and 80 per cent shortfall was noticed in inspection of industries.

Sewage generated was discharged directly into irrigation canals contaminating water bodies and ground water. Continuous ambient air quality monitoring station for monitoring all the prescribed parameters was not installed, it stated.

Labs here and in Karaikal did not have facilities to do microbiological and toxicity tests for analysis and characterisation of hazardous waste and soil, sludge, sediments and solid waste analysis as prescribed by Central Pollution Control Board.

CAG said that as of March 31, 2015, the government invested Rs 998.93 crore in its companies and cooperative institutions. Though the average rate of interest on government's borrowings was 7.9 per cent, the average rate of return on investments was around 0.4 per cent in 2010-15.

Outstanding fiscal liabilities increased from Rs 4,588 crore in 2010-2011 to Rs 7,030 crore in 2014-15. The fiscal liabilities constituted about 27 per cent of the Gross State Domestic Product in 2014-2015.

Revenue expenditure of Rs 4,800 crore in 2014-15 was 88.64 per cent of total expenditure. Committed expenditure like salaries, pension and interest payments was around 51 per cent of revenue receipts and revenue expenditure.

Development expenditure increased by Rs 344 crore from Rs 3,558 crore in 2013-14 to Rs 3,902 crore in 2014-15. Development expenditure as a percentage of aggregate expenditure marginally declined from 73 in 2013-14 to 72 in 2014-2015.