HP govt gave benefit of Rs 209.28 crore to Jaypee Power: CAG

The Jaypee Power Company which executed the 1000 MW Karchham-Wangtoo hydropower project in Kinnaur district has come under scanner of CAG which has pulled up the Himachal government for allegedly giving benefit of Rs 209.28 crore to the company.
The CAG in its reportfor year ending March 2015 also pointed out that the company concealed facts about actual capacity of the project which was increased to 1200 MW, 200 MW above the capacity of 1000 MW approved by the Central Electricity Authority (CEA).
Ram Mohan Johri, Principal Accountant General (Audit) Himachal Pradesh said that "Failure of the Energy department to detect capacity addition of hydropower project in time and non-levy of Rs 209.28 crore on account of capacity addition charges, additional free power royalty and local area development fund led to extension of undue favour to the power developer."

The CAG report revealed thatthe Karcham-Wangtoo hydel project was allotted to Jaiprakash Industries Limited with installed capacity of 900 MW through MOU route in August 1993 and the CEA while according techno-economic clearance to the project in March 2003, enhanced capacity of 1000 MW.
The estimated cost of the project, slated to Commissioned in 2011 was Rs 6903 crore.
However, the CEA detected in 2011 that the turbine of each generating unit procured by the promoter were designed for 300 MW, implying that the actual capacity was increased to 1200 MW which was 20 per cent more.

The state government constituted a Technical Committee (TC) to investigate the specific deviations in the project which confirmed in June 2013.

But even after detection by the CEA and confirmation of grave deviations, the company got approval for the same from the state government in 2015 while the department did not levy any charges for capacity addition charges, additional free power royalty for the period of 2011-15.
Further against Rs 103 crore under Local Area Development Fund, the government realised only Rs 32.00 crore.
"When the questions posed to concerned government authorities, they admitted that the company had no Techno-economic clearance for 1200 MW and also there was failure to levy dues to the tune of Rs 209.28 crore," Johri said.