CAG slams DTL for failure to recover dues from BSES

The Comptroller and Auditor General today slammed Delhi Government-run power company DTL for extending "undue benefit" to private power distribution company BSES and not recovering dues worth Rs 754 crore from it.
The Delhi Transco Ltd maintains major transmission network in the city and power distribution companies have to pay the government entity fee for using its network.
"An amount of Rs 754.83 crore was pending for recovery from them as on 15 December 2012," said the CAG in its report which was tabled in the Delhi Assembly today.
The national auditor said as per the provisions of Bulk Power Transmission Agreement (BPTA), DTL has the option of discontinuing or deregulating transmission of power to the discoms but the government owned entity did not take any such action.

"Thus, DTL failed to safeguard its financial interest by not following the provisions of the agreement signed with discoms, thereby extending undue benefits to private companies," the CAG said.
The CAG said the DTL could not expand its network satisfactorily and even cost of projects went up due to delays. "The DTL could not complete its projects as per the original schedule and time frame. There was cost overrun of Rs. 109.04 crore due to substantial time gap in conceiving and implementation of projects of transmission lines and sub stations," it said.
"Not taking up interconnected projects/activities simultaneously and delayed execution of projects resulted in blockade of funds of Rs. 287.09 crore. There was further loss/avoidable/extra expenditure of Rs. 64.42 crore due to various deficiencies observed in execution of projects.

"In addition to this, delay in decision making, wrong decision and improper contracting led to extra/avoidable expenditure of Rs 5.35 crore besides affecting the operation and maintenance of sub stations and lines," it added.