BENGALURU: The Comptroller and Auditor General of India (CAG), in its report for the period ending March 2023, has flagged undue benefits extended to network service providers, including the Electricity Supply Companies (ESCOMs), in the form of road-cutting charges amounting to Rs 7.32 crore.
The irregularities were noted in four Public Works Department (PWD) divisions, Davangere, Madikeri, Mysuru, and Shivamogga. Between June and August 2023, the audit reviewed road-cutting permissions granted in 22 cases covering a length of 153.73 km. The report observed that instead of quoting the fixed government rates prescribed in orders issued on June 8, 2020, for state highways and major district roads, the divisions applied their own rates. Consequently, only Rs 0.37 crore was collected as road-cutting charges, against the required Rs 7.69 crore.
The CAG noted that these cases were reported to the government in October 2023. A reply, received in December 2023, referred to the government orders issued in June 2020 and February 2021, and stated that the charges applied only to electric cables and gas pipelines. The government added that action was being taken to frame guidelines and rate charts for road-cutting and Right of Way usage by network service providers, which would be issued in due course.
However, the CAG termed the reply untenable, pointing out that on April 19, 2021, the government had already prescribed the applicable rates through its earlier orders of June 2020 and February 2021. The divisions were therefore required to collect charges in line with the April 19, 2021, directive.