Bhubaneswar: The ability play in Odisha is in a piquant place. The query nagging each thoughts is what’s going to occur to the State if the lone bulk energy provide utility GRIDCO go bankrupt.
The actual fact of GRIDCO bleeding crimson and on the verge of chapter has popped out within the audit report of CAG that was tabled yesterday in Odisha Meeting.
HOW BANKRUPTCY SWORD HANGS OVER GRIDCO?
The online price of State Energy transmission PSU GRIDCO Restricted had absolutely eroded (Rs (-)3,853.75 crore). On the combination degree, it’s among the many 9 energy PSUs which have gathered losses to the tune of Rs 4,443.12 crore as towards the capital funding of Rs 4,048.67 crore as of 31 March 2019.
WHAT’S THE WORRY:
” A detrimental internet price signifies that your complete funding by the homeowners has been worn out by gathered losses and deferred income expenditure,” the CAG report rued.
“If your complete funding will get worn out by liabilities and losses then how can the facility transmission infra within the State document a revival. It will result in larger T & D (Transmission and Distribution), AT&C (combination technical and business) losses, which in flip will result in a rise in energy tariff yearly or again to the darkish ages,” opine specialists within the energy sector.
WHY MORE POWER TARIFF HIKE LOOMS LARGE?
The ability customers within the State have to fret so much if the revelations of the CAG report are any indication. Not solely GRIDCO, however the DISCOMs within the State are additionally in deep crimson. The CAG report finds that AT&C (combination technical and business) losses of DISCOMS within the State have risen to 74 per cent on 2018-19 from 50 per cent. The specialists are of the view that prime AT and C loss has been the primary contributing issue behind steep hikes in energy tariff.
THE BUCK STOPS WHERE?
If the CAG report is to be believed then the mess within the energy sector is the ‘undoing of the State Vitality Division. The ability-play of omissions and commissions have been behind the journey down within the efficiency of GRIDCO and DISCOMS.
Pattern the small print beneath.
- ODSSP (Odisha Distribution System Strengthening Venture) was conceived for implementation inside the timeline of 2018-19 in an effort to scale back AT&C loss and to extend the provision of high quality and dependable energy to the customers by up-gradation of distribution infrastructure.
- The undertaking didn’t yield the specified consequence and was affected by delays attributable to inadequacies in undertaking planning. Execution of the undertaking suffered attributable to delayed handing over of web sites and lack of coordination with the DISCOMs.
- In some cases, structural deficiencies like set up of upper capability transformers (resulting in improper load balancing), set up of faulty transformers, utilization of outsized conductors continued to probably influence AT&C losses negatively as an alternative of arresting them.
- Cases of unplanned and uneconomic procurement of supplies led to bigger monetary outlay with out the corresponding profit for the attainment of the envisaged undertaking goal.
- The CAG report, thus, has commented that this has led to a state of affairs whereby even after spending 81 per cent of the undertaking outlay, the bodily progress of the undertaking was 36 per cent (August 2019).
THE PLUG-OUT FACTORS
- Irregular award of tender and extension of undue profit to the contractor within the procurement of conductors.
- OPTCL invited open tender (March 2017) beneath a two-part bidding system for procurement of 71 KMs ACSR Panthor and 1,015 KMs ACSR Zebra conductors.
- The tender inter alia stipulated that the quoted worth can be variable as per the Indian Electrical and Electronics Producers’ Affiliation (IEEMA) worth variation (PV) clause.
- The final date of submission of tender was 5 April 2017. The bottom date of quoted worth was given as 06 March 2017 i.e., 30 days previous to the opening of the techno-commercial a part of the tender.
- Nonetheless, earlier than analysis of the worth bids of techno-commercially certified bidders, the Items and Providers Tax got here into drive on 1 July 2017.
- Therefore, the techno-commercially certified bidders have been requested (September 2017) to submit the GST compliant worth bid on or earlier than 06 October 2017.
- Accordingly, as per worth variation stipulations, OPTCL modified the bottom date to six September 2017 i.e., 30 days previous to the final date of submission of the GST compliant worth bid to offer impact to the worth variation clause.
- The events have been required to say both ‘Agency’ or ‘Variable’ solely towards the character of worth within the worth bid whereby a variable nature of worth implies that worth was topic to alter in the course of the tender interval.
CAG FINDS SHOCKERS
- Based mostly on worth bids acquired, a purchase order order was positioned on the L1 bidder on 17 February 2018 for a provide of 71 KMs of ACSR Panther conductor and 1,015 KMs of ACSR Zebra conductor at a worth of Rs 26.29 crore.
- Resulting from such ‘irrational’ buy bids, CAG says, ” Consequently, the applicability of worth variation clause in deviation to tender situation resulted in an extension of undue profit to the provider and avoidable expenditure of Rs1.04 crore (Rs 39.13 – Rs 38.09 crore).