CAG finds irregularities of Rs 41 Cr in APDCL

Comptroller and Auditor General of India has found various irregularities in Assam Power Distribution Company Ltd (APDCL), resulting in revenue loss of over Rs 41 crore during 2013-14.
In its latest report on Public Sector Undertakings for the year ended March 31, 2014, the CAG said it observed "loss of revenue of Rs 41.26 crore in six instances owning to non- compliance of rules, directives, procedures and terms and conditions of supply of electricity".
CAG pointed out that there were irregularities in the management of distribution franchisee agreement of APDCL.
"As per analysis carried out by Audit, an average BST (Bulk Supply Tariff) rate of Rs 3.35 per unit was arrived at against the average BST rate of Rs 2.98 per unit adopted by the company under IBDF (Input Based Distribution Franchisee System).

"The total loss sustained by the company during August 2011 to June 2014 on account of adoption of lower BST rates worked out to Rs 24.57 crore," the report said.
The CAG also found that the company paid Rs 11.59 crore extra to its franchisee because of higher consideration of return at 15 per cent instead of stipulated 10 per cent.
There have been cases of accumulation of dues against the terminated franchisee agreements and it stood at Rs 2.04 crore as of March 2014.
In addition to this, there is a non-realisation of the company's old receivables of Rs 81.50 lakh due to failure of APDCL to insist upon the franchisees for recovery of previous revenue arrears from consumers along with their current dues.