Audit Reports
Himachal Pradesh
Report No. 2 of 2014 - Performance Audit on Public Sector Undertakings (Economic Sector) of Government of Himachal Pradesh
Overview
This Report contains 10 paragraphs and one Performance audit on 'Sawra Kuddu Hydro Electric Project' (executed by Himachal Pradesh Power Corporation Limited) involving a financial effect of Rs. 434.81 crore relating to non / short recovery due to non compliance of rules / regulations and terms & conditions of the contract agreements, non / short levy of fixed demand charges, inadequate / deficient monitoring of the progress of die projects, etc. Some of the major findings are mentioned below:
The State of Himachal Pradesh had 19 working PSUs (17 companies and two Statutory corporations) and two non-working companies which employed 34,992 employees. As on 31 March 2014, the investment (capital and long term loans) in 21 PSUs was Rs. 8,909.84 crore. The total investment in State PSUs, 99.12 per cent was in working PSUs and the remaining 0.88 per cent in non-working PSUs. The total investment consisted of 33.56 per cent as capital and 66.44 per cent as long-term loans. The equity has increased from Rs. 1,948.65 crore in 2009-10 to Rs. 2,990.47 crore in 2013-14. Power sector accounted for over 85.87 per cent of the total investment in 2013-14. The Government contributed Rs. 728.81 crore towards equity, loans and grants / subsidies during 2013-14.
In contravention to the guidelines issued by Gol for Financial Restructuring Plan (FRP), the State Government has taken reference date for restructuring of loans as 31-07-2013 against 31-03-2012. Against Rs. 1,398.35 crore (accumulated losses as on 31.03.2012), the HPSEBL got approved from State Government, an amount of Rs. 1,462.50 crore under FRP. Important mandatory conditions of the FRP regarding payment of subsidy upfront by State Government as per section 65 of Electricity Act, 2003, installing of prepaid meters in the premises of frequent defaulters and preparation of accounts in alignment with the provisions of Companies Act, 1956 (accounts for the year 2012-13 and 2013-14 were yet to be finalised) have not been complied with (November 2014).