Given 4,700-MW target, DVC added only 500 MW in 11th Plan: CAG

Set with a target of 4,700-MW capacity addition during 2007-12 Five-Year Plan, Damodar Valley Corporation (DVC) managed to add only 500 MW during the period, a CAG report said today.
"... The Corporation could add only 500 MW i.E. 11 per cent of the target of 4,700 MW (own projects) with a shortfall of 4,200 MW," said Comptroller and Auditor General of India report on capacity addition in power generation during 2007-12 by DVC which was tabled in the Parliament.
The report further said that the PSU planned to add power generation capacity of 6,250 MW during XI Plan period (4,700 MW by the Corporation alone and 1,550 MW through Joint venture).

As on 31 March 2014, it had a total power generation capacity of 5,857.2 MW -- thermal 5,710 MW and hydel 147.2 MW, it said.
It further said that with regard to Mejia thermal power station unit 5 and 6, Detailed Project Report(DPR) was prepared without adequate investigation and deficiencies were noticed after finalisation of orders which resulted in delay.
"... And in Chandrapura Thermal Power Station(CTPS) Unit 7 & 8, the execution work initially suffered for 26 months due to delay in handing over the land to the contractor, non-availability of storage space for shipment of materials at site, local law and order problems, abnormal rise in price of steel and cement etc," it said.

"Execution of main plant package was delayed due to non-availability of clear work fronts, coal linkage, water and delay in completion of coal handling plant and the DPR for MTPS 7 & 8 did not adequately address the adequacy of capacity of existing ash ponds to hold the entire ash in case of low level of utilisation of dry fly ash," it added.

Due to delay in development of the captive coal blocks, DVC lost the opportunity to use cheaper coal. Moreover, it had to bear additional cost as Performance Incentive (PI) towards procurement of coal over and above the annual contracted quantity (ACQ), it said.

There were deficiencies in various stages of contract management and the objective of efficient and timely execution of the contracts remained unfulfilled, it said.
"As per the manual of the Corporation, a contract should be awarded within 161 days from the date of invitation of tender. Out of 13 contracts, seven contracts were finalised with delays ranging from 12 to 117 days. Further, in respect of four contracts the delays were more than 100 days," it said.
The main reasons for delay were extension of bid submission dates and discrepancies in scope of work detected during finalisation of price bids, it added.