The CAG in its report has pulled up the West Bengal State Electricity Distribution Company Limited for a loss of several crores of revenue from the government exchequer due to irregularities in awarding contracts to the executing agencies.
According to the CAG reports,WBSEDC took up 4,283 villages for electrification under the central scheme RGGVY. However,only 3,665 villages were electrified. The company could make electricity available to 12.75 lakh BPL households of 26 lakh BPL household in the state during the period 2006-2011. The report pointed out that almost 50 per cent of the BPL households are yet to receive electricity in the state in last five years of work.
The CAG observed in its report that the company incurred extra expenditure of Rs 102.08 crore in execution of works due to placement of orders at higher rates compared to the approved estimate,inclusion of pice variation clause instead of fixed cost envisaged in the scheme and double payment on earthing materials.
The CAG pointed out that the company had to forgo administrative charges of Rs 66.08 crore as estimates exceeded the sanction limits.