Date:03/08/2005 URL: http://www.thehindubusinessline.com/2005/08/03/stories/2005080300020400.htm

Back CAG report faults Bengal power, fisheries PSUs

Our Bureau

Kolkata, Aug. 2

THE report of the Comptroller and Auditor General (CAG) of India for the year ended March 31, 2004 has criticised the functioning of several West Bengal public sector units. It has been particularly harsh on companies and agencies in the power sector, including the West Bengal State Electricity Board (WBSEB), and those in the fisheries and handloom sectors.

According to the CAG report, West Bengal Power Development Corporation Ltd, (WBPDCL) - which runs headway in achieving objectives due to poor productivity of farm, under-utilisation of water bodies, high staff cost, and non-implementation of development programmes.

"These led to a loss of production of different types of fish amounting to Rs 371.35 crore during 1999-2004, as actual production fell short of standards," it said. Similarly, West Bengal Fisheries Corp Ltd failed to implement a World Bank-aided programme.

"Consequently, expenditure of Rs 64.03 crore proved to be unfruitful, while investment of Rs 7.79 crore was in jeopardy. Besides, the recovery of loans aggregating Rs 16.61 crore from beneficiaries was bleak."

West Bengal Handloom and Powerloom Development Corp has been blamed for the bankruptcy of 89 societies and 100 weavers as it had failed to pay dues of Rs 4.49 crore. Rs 78.49 crore.

As a result, WBSEB had to purchase 13,626 million units of power worth Rs 2,294.37 crore. Apart from these two bodies, Durgapur Projects Ltd and West Bengal Rural Energy Development Corp failed to implement internal control mechanism in areas of purchase and sale of power, and material and fund management.

"Besides, internal audit had not been honed as an effective tool for internal control." In the fisheries sector, the CAG said, State Fisheries Development Corp (SFDC) did not make any noticeable stated that growth in the sector failed to keep pace with the increased power availability as implementation of major transmission projects was delayed.

"Under JBIC and PFC assisted projects, 78-100 per cent sub-stationsand transmission lines stretched beyond scheduled completion dates. Consequently, the board lost potential revenue of Rs 226.76 crore and incurred additional line losses of Rs 40.29 crore."

It added that a mismatch between construction of transmission lines and related sub-stations led to under-utilisation of the power production unit at Kolaghat with capacity of 1,260 MW (210 MW x 6) - had lost approximately Rs 184.72 crore due to faulty functioning on different counts.

"WBPDCL suffered loss due to excess consumption of fuel, delay in replacement of turbine blades, implementation of a project without financial tieups, undue benefit to a private coal supplier, inept cash management, and others," said Mr Arijit Ganguly, Principal Accountant-General. Regarding power transmission by WBSEB, the report