CHAPTER 7
INDIAN COUNCIL OF AGRICULTURAL RESEARCH

7.1    Avoidable payment of electricity charges

Lack of effective follow up action by NBPGR and poor co-ordination with CPWD led to avoidable payment of Rs 1.46 crore on account of load violation charges and low power factor charges

National Bureau of Plant Genetic Resources (NBPGR), a constituent unit of Indian Council of Agricultural Research (ICAR) obtained electricity connection of 96 KW from Delhi Vidyut Board (DVB) in November 1995 for test running of their equipment at Plant Quarantine Green Houses near National Gene Bank at Delhi, initially for a period of 6 months which was extended from time to time. The DVB on the request of NBPGR enhanced temporary service connection in November 1996 to 498.45 KW. The temporary service connection load was for a specific period of 2 months only and was to be utilised strictly for testing of the equipment.

In November 1996, after the completion of the construction work for providing 700 KW load on permanent basis for the Gene Bank, DVB asked NBPGR for availing of the permanent connection after completion of the commercial formalities viz. (i) Test Report alongwith list of installation and shunt capacitors, (ii) Test certificate of HT equipment from Delhi Administration/CEA (iii) Lift fitness certificate issued by Inspector of lifts (iv) NOC from Chief Fire Officer (v) Completion certificate of the building and (vi) Dues clearance certificate of existing connection.

DVB gave a period of 30 days to NBPGR to complete the formalities failing which NBPGR was liable to pay minimum demand charges alongwith the rental and maintenance charges with effect from the date of expiry of the notice period of 30 days in addition to temporary connection charges. NBPGR could not complete the formalities and obtain the permanent connection for four years till October 2000. The electric load consumed by NBPGR was always in excess of the sanctioned load of 498.45 KW, and it varied between 812 KW and 587 KW. Besides, NBPGR could not maintain the required power load factor at 0.85 level due to defects in the shunt capacitors and other electrical equipment. Resultantly, the bills raised by DVB included temporary charges, load violation charges @ 30 per cent of the total tariff and 20 per cent to 48 per cent surcharge on basic charges plus energy charges for failure to maintain the required power load factor level. In all, NBPGR made an avoidable payment of Rs 1.46 crore on account of temporary charges, load violation charges and low power factor surcharge upto October 2000.

ICAR stated in March 2001 that the responsibility for completing the commercial formalities rested with CPWD and that NBPGR had immediately approached CPWD for this purpose. ICAR further stated since it was not possible to supply commercial information to DVB within stipulated period, NBPGR was left with no option but to continue the temporary connection till October 2000 for running the long term cold storage modules to conserve valuable seed/genes.

However, it is difficult to appreciate that it took NBPGR/CPWD four years to complete the formalities required by DVB for which a period of 30 days had been stipulated. In so far as the power load factor was concerned, NBPGR took up the issue of non-functioning of load factor equipment only once in August 1998. The lack of effective follow up action on the part of NBPGR and its poor co-ordination with CPWD were factors mainly responsible for an avoidable payment of Rs 1.46 crore on account of temporary charges, load violation charges and low power factor surcharge.