BENGALURU: The Karnataka Power Transmission Corporation Ltd (KPTCL) had indulged in financial bungling running into crores of rupees, the burden of which was passed on to consumers. The Comptroller and Auditor General of India (CAG), Karnataka, in its report on Public Sector Undertakings for the year ended March 2019, tabled before the State Legislature on Wednesday, has found that KPTCL created excess transmission capacity of Rs 3,870 crore, way beyond the norms in the Manual on Transmission Planning Criteria.
This comes close on the heels of a major tariff hike. “...there was an excess transmission capacity of 5,230 MVA involving capital cost of Rs 3,870 crore, which was an avoidable burden placed on consumers as the cost incurred on creation of such excess capacity was factored into transmission tariff recoverable from the distribution licences,” the report stated.
The report also noted that KPTCL, being well aware of the earlier cases of problems with right of way, involved in a total expenditure of Rs 800.19 crore, spanning six zones. This not only led to work delays but also the envisaged energy savings were lost. Due to delays in completion of 50 test-checked projects, KPTCL lost energy savings of 1,656 MU, valued at Rs 556.42 crore through an expenditure of Rs 1,559.27 crore.
It also noted that KPTCL failed to comply with its own circulars and guidelines prescribed for repair of failed power transformers. It stated that 55 transformers, valued at Rs 41.55 crore, have not been repaired for a period of one month to seven and half years, beyond the stipulated period of 360 days allowed for repair, leading to additional expenditure of Rs 75.90 crore.
In case of Karnataka Road Development Corporation Limited (KRDCL), Accountant General, Karnataka (Audit-II) Anup Francis Dungdung said that many PSUs continued to make the same mistakes they had been making in the previous years.
The report noted that KRDCL had taken approvals for taking up five of the six projects through World Bank Co-Financing under PPP, which were in deviation from the decision taken in respect of KSHIP projects. The deviation led to additional outflow of annuity of Rs 80.16 crore in two projects. The report also pointed to anomalies in the Ballari City-Andhra Pradesh border road project from 2010 to 2024, which resulted in the company incurring additional expenditure of Rs 29.53 crore.
The report said 18 PSUs were required to spend Rs 84.27 crore towards CSR activities from 2014 to 2018, but spent only Rs 65.93 crore. Out of the amount spent, Rs 14.28 crore was spent on ineligible activities and Rs 14.63 crore without recommendations from the CSR committee.