Date:31/07/2004 URL: http://www.thehindubusinessline.com/2004/07/31/stories/2004073101321900.htm

Back AP Transco procured meters at higher rate: CAG

Our Bureau

Hyderabad , July 30

THE Transmission Corporation of Andhra Pradesh (APTransco) has incurred an avoidable expenditure of Rs 3.5 crore by procuring energy meters at a higher rate.

The corporation had also incurred a loss of Rs 20.38 crore during 1997-99 due to incorrect fixation of the fuel cost adjustment recovery rate, according to the report of the Comptroller and Auditor General (CAG) of India for the year 2002-03.

The CAG report stated that at the end of the year 2000, APTransco had placed purchase orders on five firms for supply of 5-lakh single-phase electromagnetic energy meters at Rs 647 per meter. Subsequently in May 2001, to meet urgent requirement of the Distribution Companies (DisComs), APTransco had decided to procure 1.6-lakh meters of the same specification and directed the four DisComs to procure 40,000 meters each.

The DisComs, however, procured the required 1.6-lakh meters at the rate of Rs 866 per meter as against the latest procurement rate of Rs 647 per meter. Specific reasons for non-extension of procurement orders placed in the year 2000 at the rate of Rs 647 per meter were not on record. Interestingly, the CAG observed, a year later the Central Power Distribution Company of Andhra Pradesh had procured Rs 2.25 lakh energy meters of same specification at Rs 647 per meter.

In this regard, the CAG stated that the State Government's explanation that procurement would be delayed if fresh tenders were invited was not acceptable.

Similarly, the report pointed out that APTransco had incurred a loss of Rs 20.38 crore due to incorrect fixation of recovery rate of fuel cost adjustment (FCA).

APTransco had spread over the FCA shortfall amount to all the units sold including Rural Electric Co-operative Societies (RESCOS) and inter-State supplies. But FCA was not leviable on power sold to RESCOS and inter-State sales.