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State Blames Central PSUs for Delay in Rural Power Projects

Holding the Central executing agencies responsible for delay in completion of rural electrification projects under Rajiv Gandhi Grameen Vidyutkaran Yojana (RGGVY), the State Government on Wednesday said the conditions attached to release of financial assistance for 12th plan projects are not acceptable.

Published: 31st July 2014 09:00 AM  |   Last Updated: 31st July 2014 09:00 AM   |  A+A-

BHUBANESWAR: Holding the Central executing agencies responsible for delay in completion of rural electrification projects under Rajiv Gandhi Grameen Vidyutkaran Yojana (RGGVY), the State Government on Wednesday said the conditions attached to release of financial assistance for 12th plan projects are not acceptable.

As the Central PSUs are directly under the control of Government of India, completion of 10th and 11th plan projects under the scheme largely depend on their performance, the State Government said.

“Linking of release of funds against 12th plan projects to the closure of 10th and 11th plan projects seems to be unjustified which may not be accepted,” said Principal Energy Secretary P K Jena in response to the recent letter from the Ministry of Power. Taking exception to conditions imposed by the Ministry, Jena said the Central PSUs executing the infrastructure projects are not improving their performance despite regular reviews.

NTPC Electric Supply Company Limited (NESCL), National Hydro Power Corporation (NHPC) and Power Grid Corporation of India Limited (PGCIL) are the three Central PSUs executing the rural electrification works in the State since 2007.

In a recent communication, Union Joint Secretary in Ministry of Power B N Sharma had warned the Government that funds against 12th plan projects will be released after submission of closure reports of the last two plan projects. The Ministry has asked the State to complete balance works of the last two plan projects by September.

Setting August 15 and September 30 as deadlines for award of contract of 12th plan projects, Sharma said the Ministry will be constrained to cancel the projects if the Government failed to meet the deadlines.

Instead of asking the State Government, the Ministry should direct the implementing agencies to complete the works by the stipulated time, Jena said.

On delay in furnishing closure reports, Jena said of the four projects sanctioned during 10th plan, three have been completed. While the project closure report of Nayagarh district has been accepted by Rural Electrification Corporation (REC), the funding agency NHPC is yet to submit closure reports of Gajapati and Ganjam districts. Besides, the closure report of Angul is under scrutiny of the State Government.

Stating that NHPC is not inclined to complete the balance works of Phailin affected Ganjam district, Jena sought the intervention of the Power Ministry.

Unfair Deal

As the Central PSUs are directly under the control of Government of India, completion of 10th and 11th plan projects under the scheme largely depend on their performance

Central PSUs executing the infrastructure projects are not improving their performance despite regular reviews

NTPC Electric Supply Company Limited, National Hydro Power Corporation and Power Grid Corporation of India Limited are executing the rural electrification works in the State



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