'PSPCL draws excess coal due to poor linkage materialisation'

Punjab State Power Corporation Ltd (PSPCL) had to draw "excess" coal supplies over and above the annual contracted quantity from other sources due to "poor linkage" materialisation by one source, says a report by government auditor CAG.
The Comptroller and Auditor General of India (CAG) report, tabled in the state Assembly here today, noted that the fuel cost of the PSPCL varied from 75 to 85 per cent of total generation cost in different plants during 2008-13.
PSPCL operates three coal-based thermal power stations Guru Gobind Singh Super Thermal Plant at Rupnagar (1,260 MW capacity), Guru Hargobind Thermal Plant at Lehra Mohabbat (920 MW capacity) and Guru Nanak Dev Thermal Plant at Bathinda (450 MW capacity).

"Against linkage of 679.61 lakh tonnes, the PSPCL could secure receipt of 609.34 tonnes of coal during 2008-13," the CAG found while auditing performance of fuel management at power generating stations of PSPCL.
"Due to poor linkage materlialisation by one source, the PSPCL had to draw "excess" coal supplies over and above the annual contracted quantity from other sources and had to pay (August 2010) performance audit incentive of Rs 9.14 crore on account thereof and failed to recover compensation of Rs 115.44 crore for short delivery of coal," says the report.
Inadequacy of unloading infrastructure at the three thermal power stations resulted in avoidable payment of demurrage charges of Rs 56.75 crore during 2008-13, it said.

"No effective action was taken to recover underloading and overloading charges of Rs 68.98 crore," it added.

The CAG points out that the actual consumption of coal was higher than the norms prescribed by Punjab State Electricity Regulatory Commission. "The excess consumption was valued at Rs 426.60 crore," says the report.
The CAG noticed that the internal control system was found deficient - imbalances in materialisation of coal linkages and non recovery of compensation claims.
PSPCL failed to enforce its divisional authorities to check excessive energy posses in respect of independent feeders resulted in revenue loss of Rs 6.18 crore, the report added.