CAG pulls down KSEB

By Our Special Correspondent

THIRUVANANTHAPURAM, JULY 2. The purchase of power at a higher rate from the Kayamkulam Power Project without fully drawing the allocated power from the Central Pool resulted in a loss of Rs. 10.78 crores to the KSEB during the year ended March 31, 2000, according to the report of the Comptroller and Auditor General (CAG) of India, presented in the State Assembly today.

The report also says that transmission and distribution loss in excess of the norm prescribed by the Central Electricity Authority during the five years up to 1998-99 was to the tune of Rs. 178.84 crores.

Penalty for low Power Factor below the norm of 0.85 was not imposed on high tension and extra high tension consumers resulting in non-realisation of an additional revenue of Rs. 14.67 crores. The KSEB purchased power at a higher cost from the Central Pool and sold the same to the Pondicherry Electricity Department at a lower rate. This led to a loss of Rs. 4.59 crores to the KSEB.

Errors and delay in billing of consumption during power cut period, non-application of higher tariff rates for imported energy, mistakes in fixing quota and irregular sanction of concessions/rebates to ineligible consumers led to a revenue loss of Rs. 13.87 crores to the KSEB.

Another area where the KSEB lost revenue, according to the report, was through wide disparities between the energy sent out from the substations and that recorded at the consumers' premises. The revenue lost this way was Rs. 16.94 crores.

Referring to the performance of the KSRTC, the report says its accumulated loss in 1998-99 was to the tune of Rs. 443.89 crores, completely eroding its equity capital. Delay in repair of vehicles caused the loss of 80,603 vehicle days for the KSRTC in 1999-2000, leading to a loss of Rs. 27.34 crores in potential revenue.

The report says that the KSRTC did not have in its records the party-wise and year-wise details of outstanding advances amounting to Rs. 7.26 crores given to suppliers of materials prior to March 31, 1996.

Cancellation of scheduled trips due to want of buses varied from 44 per cent (1996-97) to 66 per cent (1998-99) in 16 depots. Further, cancellation of economic services and operation of uneconomic services led to a loss of Rs. 5.25 crores in potential revenue.

Expenditure on staff salaries and allowances constituted about 39 to 48 per cent of the total expenditure. The hike in passenger fares in August, 1996, could not fully compensate for the increase in operating expenses.

Laxity on the part of public sector undertakings in accounting matters has once again received special mention in the CAG report. The report says that only 18 of the 103 Government companies finalised their accounts for the year 1999-2000 within the stipulated period. And none of the five statutory corporations did this.

The accounts of 85 companies and the five statutory corporations were in arrears for periods ranging from one to 17 years. According to the latest finalised accounts, 37 companies and three statutory corporations earned an aggregate profit of Rs. 184.16 crores and Rs. 50.55 crores respectively. On the other side of the spectrum, 61 companies and two statutory corporations sustained an aggregate loss of Rs. 163.40 crores and Rs. 72.78 crores respectively.

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Section  : Southern States
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