Shimla: The losses of Himachal Pradesh State Electricity Board Limited (HPSEB) are much more than what board has been showing, for the Comptroller and Auditor General (CAG) after auditing the accounts for 2011-12 have put the losses at Rs 676 Crore, which is more than double of what is shown in the books.
Addressing reporters Principal Accountant General (AG) Satish Loomba said the HPSEB had not only purchased power from outside the state at exorbitant rates but also committed irregularities in payment of revised wages and other benefits to its employees under the Sixth Pay Commission norms.
“The HPSEBL showed a loss of Rs 315 crore during 2011-12 but when CAG auditors scrutinized the losses, these were found to be more than double of what the HPSEB had declared. We have told the HPSEB that its accounts are not a true reflection of its financial position and so we have awarded it a negative grade,” said Loomba.
A 20 year performance audit of the hydropower sector in the private sector showed that of the 559 projects allotted since 1991 that had a generation potential of 10,131 MW, only 55 projects (10 percent) of them had been commissioned by 2012.
However, CAG was unable to calculate the revenue losses the state incurred because of delays and enhancing of project capacities because of faulty project investigation reports.
“Though we believe that the government is on a learning curve as far as power projects implementation is concerned but it is required to fine tune agreements with companies and ensure that core areas of projects are not out sourced to consultants who have no accountability,” Loomba added.
The CAG report has also drew attention to the lack of proper environmental protection measures during execution of these projects, besides the inability of the government to invoke the mandatory clause of 70 per cent jobs to Himachali’s in hydropower projects.
Commenting on state public enterprises, CAG observed that the fiscal situation of all 19 PSUs in the state was not good and of total declared losses of Rs 1360 crore, Rs 224 crore was reported in 2011-12.