CHENNAI: Implementation of the Centre's Ujwal Discom Assurance Yojana (UDAY) scheme in TANGEDCO between 2016-17 and 2019-20 has not helped the State power utility improve its finances or operational efficiency as its debt has gone up 52 per cent from Rs 81,312 crore in September 2015 to Rs 1.23 lakh crore on March 2020, shows the Comptroller and Auditor General Report tabled in the State Assembly on Tuesday.
Uday scheme envisaged reduction of gap between average cost of supply (ACS) and average revenue realised (ARR) to zero by 2018-19 and reduction in aggregate technical and commercial loss by 13.50 per cent by 2018-19. But the action plan submitted as part of the memorandum of understanding (MoU) did not have parameters to assess implementation of various targeted activities and fund required or source of funds to execute them.
The State was also mandated to take over 75 per cent of the debt (Rs 81,312 crore) of the discom by 2016-17. However, there was a shortfall in taking over debt worth Rs 30,502 crore resulting in interest burden of Rs 9,150.60 crore during 2017 to 2020.
The audit also noted that due to partial takeover of debt and failure to convert 25 per cent debt into bonds under Uday scheme, the discom continued to pay interest. "Tamil Nadu failed to convert TANGEDCO debt of Rs 7,605 crore into lower interest government-guaranteed bonds," the report said.
TANGEDCO paid Rs 503.03 crore as penal interest
TANGEDCO paid overdue and penal interest of Rs 503.03 crore to three financial institutions, though it was not obligated to pay such overdue interest as per the (MoU). Similarly, under the Uday scheme, the gap between ACS and ARR has to be brought to zero by 2018-19, but this was not adhered to and the discom reported a loss of Rs 12,623.41 crore that year.
The reasons include nonrevision of tariff to match the cost, short receipt of subsidy from the State, continued operation of thermal power stations with low Plant Load Factor (PLF), and purchase of power from costlier sources.
The report also faulted TANGEDCO for flouting Central Electricity Authority norms and reporting incorrect AT&C loss. It stated that TANGEDCO did not exclude the wheeling units as input energy as prescribed by Central Electricity Authority.