The Comptroller and Auditor General (CAG) report for 2022-23, tabled by Chief Minister Rekha Gupta on Friday, raised concerns over shortcomings in Delhi’s electricity subsidy scheme. On electricity subsidies, the audit found that subsidy expenditure had increased from Rs 2,405.59 crore in 2019-20 to Rs 3,161 crore in 2022-23.
It stated that the policy “did not target the deserving and disadvantaged section of the population and paid it to nearly the entire domestic consumer base.”
The report also observed that over 50,000 consumers with zero electricity consumption for more than a year received Rs 17.81 crore in subsidies, while the regulatory assets of Delhi’s electricity distribution companies (DISCOMs) rose from Rs 9,063 crore in 2019-20 to Rs 27,200.37 crore by March 31, 2021.
The CAG audit also questioned the provision of subsidies for consumption up to 400 units. It noted that there was no concrete basis on record for fixing this limit, despite the scheme covering nearly 80 per cent of domestic consumers.
Under the subsidy policy, more than 30 lakh consumers using 0-200 units of electricity received an average annual subsidy of Rs 6,000. Meanwhile, around 16.60 lakh consumers using more than 200 units received an average annual subsidy of over Rs 10,000 per connection, which was nearly 70 per cent higher than that received by consumers with lower consumption.
The CAG recommended that the government review the electricity subsidy policy and make it more transparent.
E-procurement system under scanner
Bidders in Delhi government’s e-procurement system used common PAN numbers and identical email IDs, pointing to possible collusion and cover bidding, the CAG report has found out.
The report, which examined the system between 2017-18 and 2022-23, found that in 7,181 tenders worth Rs 3,217.44 crore, involving 14,527 valid bids, bidders had used the same IP addresses, indicating a conflict of interest.
In 45 tenders worth Rs 530.25 crore, bidders registered with a common PAN number bid in the same tender, suggesting possible collusion. Separately, 12,283 bidders were found to have used just 5,658 email IDs between them, allowing multiple registrations under a single ID. Further, in 38 tenders worth Rs 2.52 crore, all bids came from bidders registered with the same email ID, pointing to suspected cover bidding.
The audit also flagged 66 bidders who were allowed to register without mandatory PAN details, of whom 12 participated in 28 valid bids. Other lapses included registrations without date of birth details, departmental users logging in after superannuation, and decryption of financial packets before technical evaluation.
Other irregularities flagged
Further, the report flagged several other lapses, including revenue leakages, procedural lapses, and avoidable expenditure related to the Delhi government’s Finance Department, Revenue Department, and Trade and Taxes Department.
Delhi Assembly Speaker Vijender Gupta said that CAG reports do not merely highlight shortcomings but also show the way forward for improvement. He noted that since last year, the Public Accounts Committee (PAC) has been continuously examining CAG reports that were not tabled in the House by previous governments.
The Speaker said the committee had now completed its examination of the CAG reports presented in the Assembly last year, and expressed confidence that scrutiny of the reports tabled this year would also be completed by year-end.
He added that he had directed the Assembly Secretariat to send these reports to the concerned departments so that information on Action Taken Notes (ATNs) could be placed before the House.
The CAG audit also questioned the provision of subsidies for consumption up to 400 units. 
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