Ineffective planning,non-implementation hits J-K power sector

Quoting acceptance of Chief Engineers of Samp;O Wings in both Kashmir and Jammu provinces about under utilization of funds,the auditor held that the department was not fully geared up for execution of projects for which funds were demanded.

For the development of transmission infrastructure in Jammu Kashmir, a project estimated to cost Rs 707 crore was formulated by the state government in 2003 and sent to the Union Ministry of Power for approval under 10 th five year plan. The cost of the project involving 66 works including construction of 24 grid sub-stations,laying of 37 transmission lines and augmentation of existing five sub-stations was revised to Rs 1,006.46 crore in September 2004 after its scrutiny by the Central Electricity Authority CEA.

However,the project cost was further revised to Rs 1,351 crore in 2006 due to substantial increase in cost of basic material including steel,cement and transmission equipments. Further,thirty-six works of the project were executed on turnkey basis through contractors and 30 works departmentally.

Though the funds under PMRP started flowing in March 2005,the tendering in respect of turnkey projects were commenced after a delay of two years and the letters of award for contracts were issued from December 2007 onwards by the department. Similarly,the consultancy for the project under PMRP was sought from CEA in January 2005,but the Memorandum of Understanding MoU between it and the Department for the purpose was signed after a considerable delay in July 2006,the auditor pointed out,adding that this consequently delayed the finalization of technical specifications for different equipments/material and tender documents for the project.

The execution of civil works of the projected grid sub stations and transmission lines under PMRP were started departmentally from March 2005 whereas,the constracts for execution ks on turnkey basis were awarded after delays ranging between 21 and 64 months resulting in escalation of projects cost by another Rs 287.15 crore.

While the time overrun in completion of 40 projects including grid sub stations,transmission lines,augmentation and other minor works ranged between three to 48 months. Of these,23 projects registered a cost overrun of Rs 113.43 crore.

Apart from this,26 projects were incomplete as on March 2012 despite time overrun ranging between 20 and 48 months,resulting in cost overrun of Rs 154.83 crore in the case of 17 major projects whose estimated cost had already been revised at Rs 55939 crore in 2006.

Referring to the departments failure to take preparatory steps like conducting of detailed surveys,soil testing and obtaining of statutory clearances,CAG observed that eight projects targeted to be completed within 18 months from the date of commencement of contract had not been completed as on March 2012. As a result,their execution was stopped mid-way after incurring an expenditure of Rs 155.07 crore.

Seven grid sub stations and five transmission lines executed at a cost of Rs 275.48 crore could not be energized due to non-completion of allied connecting infrastructure.

Not only this,though the overall installed transmission capacity in the state was worked out to be 3,570 MVA in 2011-12 which is in excess of the demand for power 1,795 MVA during peak hours,four grid stations remained over loaded due to unscientific planning in creation of transmission network.

Apart from this,while the department incurred transmission losses worth Rs 17312 crore from 2008-09 to 2011-12,it had to pay Rs 220.65 crore on account of Reactive Energy charges for its failure to install power factor PF during 2002-03 to 2011-12,the audit report pointed out.