PGCIL failed to maintain details of Rs 906 cr utilisation: CAG

Power Grid Corp failed to maintain project-wise details of transmission schemes where short-term open access charges worth Rs 906 crore were utilised during the period between 2004-05 and 2012-13, CAG said in a report today.
The finding is part of Comptroller and Auditor General's (CAG's) report on 'Planning and implementation of transmission projects by Power Grid Corporation of India Ltd and Grid management by Power System Operation Corporation Ltd'.
"Between 2004-05 and 2012-13, PGCIL received Rs 906.49 crore as part of STOA charges that were required to be used for building new transmission systems as per regulations and orders of CERC (Central Electricity Regulatory Commission).

"However, PGCIL did not maintain project-wise details of transmission schemes where these STOA charges were utilised with the result that new transmission systems/schemes were deprived of reduction of capital cost," the CAG report tabled in Parliament said.
Also, CAG noted that monitoring mechanism for implementation of transmission projects needed further strengthening as the project review meetings were not held as per the prescribed frequency of once in two months.
"Against 30 meetings required to be held during 2007-12, meetings ranging between three and 12 were held in various regions.

"Minutes of the pre-award meetings as well as follow up action on the decisions taken in the previous meetings were not recorded," the report said.

With regard to Power System Operation Corporation Ltd (POSOCO), the auditor said it may also consider taking up with CERC an appropriate warning system that specifies responsibility centres that would be tasked with informing constituents about state of emergency of the system.
POSOCO is the apex body for ensuring integrated operation of the power system including despatch of electricity through the grids.
To expedite execution, Power Grid may initiate advance action to conduct detailed survey of forest stretches and submit forest clearance proposals before investment approval of the project, the report noted.
Besides, the auditor has also suggested that Power Ministry "evolve norms for assessing efficiency of transmission network and loss reduction in accordance with the tariff policy".

Besides CAG said that "ill-timed shut down" of a transmission line was the proximate cause for the severe grid disturbances witnessed in July 2012.