Load-shedding, huge bills? Blame MSEDCL

The Comptroller and Auditor General of India has slammed the MSEDCL for increasing load-shedding in Maharashtra and purchasing power from
costly sources outside the state. In its report submitted to the state government on Wednesday, the CAG observed that the shortfall in power supply in the state had "increased from 9,908 MU (million units) in 2003-04 to 19,092 MU in 2007-08."
"Due to non-augmentation of generation capacity by the Maharashtra State Power Generation Company Limited (a sister concern) during the past five years, the MSEDCL purchased costly power from outside agencies. But still could not meet the demand,'' the report stated. "The actual load-shedding in state ranged from 2.5 to 15 hours against the plan of one to 12 hours,'' it pointed out.
The MSEDCL did not avail of its entire allocations from cheaper Central sources between 2005 and 2008 and had incurred an extra expenditure of Rs 374.79 crore on purchase of power on short-term basis. It purchased power from costly sources resulting in financial outgo of Rs 31.38 crore, the report stated. "Defective agreement for banking of power resulted in avoidable additional expenditure of Rs 48.72 crore,'' it added.
The MSEDCL failed to achieve the norms of Transmission and Distribution losses fixed by Maharashtra Electricity Regulatory Commission (MERC) for 2006-08, it stated. The CAG recommended that the power company should develop a system for realistic forecast of demand for energy from conventional and non-conventional sources and meet the higher demand by various categories of consumers.
During the period between 2003 and 2008, the MSEDCL had purchased 64% of its power requirement from MSPGCL, 28% power from Central sector companies (NTPC, NPCIL) on long-term basis, two per cent from independent power producers like RGPPL and six per cent power from private power trading companies like Adani Enterprises Pvt Limited, JSW Power Trading company Limited, Jindal Power Limited, NTPC Vidyut Vyapar Nigam Limited, PTC India Limited and others on short-term basis but at a higher cost, the report said. It also pointed out that the company failed to avail the prompt payment rebate from traders.
Other observations made by CAG:
* The Shivshahi Punarvasan Prakalp Limited, set up for slum rehabilitation programme in Mumbai, delayed implementation of projects. The company had taken up only 10 Slum Rehab Schemes involving construction of 10,673 tenements (measuring 269 square feet each) as against a total 1,184 schemes involving construction of 2.81 lakh tenements sanctioned by SRA till October 2008. It completed 7,649 tenements till March 2008. The company had no system to check the quality and quantity of work certified by consultants.
* The construction of quarters for state police was not commensurate with the actual requirements and there was a shortage of 39,113 quarters across Maharashtra as on May 2008. The planning and execution process of the Maharashtra State Police Housing and Welfare Corporation Limited was defective due to the works not being taken up despite administrative approvals and receipt of funds. There were cases of diversion of funds, poor monitoring, and avoidable expenditure due to inordinate delays in projects.