CAG pulls up TANGEDCO for short realisation of revenue

: The Comptroller and Auditor General has rapped the state government for billing four defence production units in the state under the domestic loads category, saying it has resulted in short realisation of revenue to the extent of over Rs 21 crore.
CAG said Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has billed these four units availing High Tension service connections under domestic load category instead of industrial power consumption category.
Due to this billing procedure, there was a short realisation of revenue of Rs 21.26 crore for nine years between March 2003 and April 2012, it said.
The four defence units mentioned in the report are Heavy Vehicles Factory (HVF), Ordnance Factory (OF), Heavy Alloy Penetrator Project (HAPP) and Cordite Factory (CF).

The CAG report on PSUs for the year ended March 2012 also said the short realisation was still continuing as on September
2012.
"The government replied (in August 2012) that Tamil Nadu Electricity Regulatory Commission has classified the Ministry of Defence Establishments under HT Tariff II A in its tariff order of March 2003," it said, adding that this reply was "not acceptable," as HT Tariff II A was meant for consumers availing HT supply for predominantly domestic loads.
"As defence production units draw power mainly for industrial purpose and distribute a part of the same to their residential colonies, their industrial consumption should be billed under HT Tariff I A (industrial power consumption) and the residential consumption under LT Tariff-1C," CAG said.