Mail News Service
Imphal, July 10 : To ensure access to electricity by all, the Power Department is required to prepare long term/ annual plan for creation of infrastructural facilities for efficient distribution of electricity so as to cover maximum population in the State. Besides the Department is required to upkeep the existing network and expand the distribution network keeping in view new connections and growth in demand.
However CAG observed that the Department did not prepare long term plan and fix any target for additions of substations, high tension lines, low tension lines and transformers; and therefore performance of the department with reference to the targets cannot be assessed in audit. Nevertheless the Department recorded some achievements during the performance audit period.
The Department added 1,013 substations, 895.57 CKM of high tension lines, 973.83 CKM of low tension lines and 83.64 MVA of transformers.
Out of Rs 40.09 crore released by the Government of India during 2006-07, an amount of Rs 15.39 crore (38 per cent) could not be utilized. Further, out of Rs 27.00 crore released under Special Plan Assistance (SPA) during 2010-11, Rs 6.34 crore (23 per cent)
could not be utilized. The Department could not state the reasons for non-utilisation of funds made available to them.
The Ministry of Power sanctioned (October 2004) Rs 133.83 crore for implementation of four APDRP schemes in Manipur and released Rs 40.09 crore till March 2007. It started tendering process in April 2007 after 29 months of the sanction and awarded the works in July 2008 after 14 months of the tender.
The Ministry of Power asked (March 2008) the State Government to expedite the ongoing works for completion by March 2009 and to short close the schemes, the completion of which was not expected within March 2009. Therefore, the works of Rs 49.17 crore in respect of these districts were closed while that of Greater Imphal was continued with the available state plan funds and special plan assistance. Thus, due to delay in tendering and award of works the APDRP scheme of the three districts had to be abandoned.
The Department awarded (July 2008) two contracts to M/S Indo Power Project Ltd., Kolkata on turnkey basis at Rs 104.86 crore for supply of equipment and materials and Rs 16.88 crore for erection with the stipulation to complete the works within nine and 18 months respectively for improvement of Power Distribution system of Greater Imphal (Phase-I) under APDRP under the scheme.
On the recommendations of the Tender Committee, the contractor was paid interest free mobilization advance of Rs 20.76 crore for the supply component. The agreement of the work provided that if the supplies were not be completed within the stipulated period, interest on the amount of outstanding advance would be recoverable at 12 per cent per annum from the date of payment of the advance.Though the supplies were to be completed by March 2009 but it was not completed as of March 2010. An interest Rs 1.22 crore worked out on mobilization advance, was resulting in an undue financial benefit to the contractor .
Records of one division revealed that payment of taxes shall be made to the contractor on the production of original documents of payment of taxes to the Department.
CAG observed that excise duty and central sales tax had been paid as per supply order without production of original documents. As a result, the Department had paid excise duty and central sales tax of Rs 751.68 lakh to the contractor without following the laid down procedure.
The Department purchased 731 Trivector meters (2003) and 730 kiosks (2007) costing respectively Rs 2.72 crore and Rs 1.35 crore. Of these 156 meters and 156 kiosks had been installed as of March 2011 leaving unutilized 575 meters and 574 kiosks valued at Rs 3.20 crore. The excessive purchase without ascertaining immediate requirements had resulted in blockage of funds for years together.
Read more / Original news source: http://manipur-mail.com/contractors-favoured-by-power-department-cag/
