Revenue loss of Rs 2,040 cr in Tamil Nadu due to backing down of wind power, says CAG

Accuses government for allowing undue benefit of Rs 22 crore to RIL

The Comptroller and Auditor General of India (CAG) has said power generators in Tamil Nadu lost Rs 2,040 crore of revenue owing to lack of evacuation infrastructure for wind power. The finding is part of the auditor's latest report highlighting several shortcomings in the renewable energy sector including an alleged undue benefit of Rs 22 crore to Reliance Industries allowed by the government in the form of solar power incentives.

According to the CAG, the break in provision of incentives to wind power developers by the government in 2012 and 2014 adversely affected capacity addition and shortfall in evacuation infrastructure was impacting wind generation. "In Tamil Nadu, the quantum of wind power backed down was 6,018 million units (MUs) during 2007-2014, resulting in a loss of revenue to the extent of Rs 2,040 crore," the report says.

While solar photo-voltaic (PV) project developers availing themselves of Generation Based Incentive (GBI) are not eligible to avail Accelerated Depreciation (AD) benefit under the Income Tax Act, Indian Renewable Energy Development Agency (IREDA) released GBI claims of Rs 22.49 crore for RIL. "This resulted in both GBI and AD being claimed by RIL in the period August 2010 to December 2012," the auditor said in its report tabled in Parliament today. An email sent to the RIL seeking comments on the allegation remained unanswered.

The report covers audit findings for the five year period ended March 2014 and talks about severe shortfall in achieving targets of Renewable Purchase Obligation (RPOs) and capacity addition. It points out India managed to achieve only 4.2 and 4.5 per cent mix of green energy in its total energy supply in 2012-13 and 2013-14 respectively against the national target of eight and nine per cent for the two years. Jammu & Kashmir and Himachal Pradesh had not set up any grid-connected solar projects even as they had potential of 1,11,000 Megawatt and 33,840 Mw, it says.

The auditor also pointed out issues with the government's remote village electrification programme and cases of irregularities in distribution and purchase of solar devices. The CAG report also highlighted several anomalies in the implementation of Prime Minister's Special Package for Arunachal Pradesh including non-completion of hydel projects due to non-availability of funds.