MoP - Ministry of Power

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in just 9 meetings. Most SEBs/ Utilities had not adopted
turnkey contracting, and had executed the works
departmentally or on semi-turnkey basis; in some
cases, the turnkey packaging was so distorted that it
negated the concept of single point responsibility, which
was the objective of turnkey contracting. In addition,
the audit also detected numerous deficiencies in
individual projects across different aspects, covering
execution of out-of-scope items, lack of economy in
procurement and execution, excess payments to
contractors and other inefficiencies.
There was lack of direct linkage between physical and
financial progress of APDRP projects at the Ministry's
level. The mechanism for inspection of APDRP
implementation was inadequate.
MINISTRY OF POWER
Audit Report No. 11 of 2007 (Regularity Audit)
National Hydroelectric Power Corporation Limited
Due to lack of proper coordination among its various
divisions, the Company could not make the contractor liable
for bearing the extra cost towards lowering the foundation
level and had to make avoidable payment of Rs.1.06 crore
to the contractor. (Para 14.1.1)
NTPC Limited
The Company made irregular payment of ex-gratia in the
form of special incentive amounting to Rs.116.88 crore to
its employees whose wages/salary exceeded the limit
stipulated under the Payment of Bonus Act. (Para 14.2.1)
Due to continuing with two loans at higher rates of interest
despite the downward trend in interest rates, the Company
incurred extra expenditure of Rs.4.72 crore till September
2006 and incurred future liability of Rs.3.91 crore over the
remaining tenure of loans. (Para 14.2.2)
Power Finance Corporation Limited
The Company sanctioned a loan to a private party
without proper appraisal and adequate securities. As a
result, an amount of Rs.8.20 crore remained outstanding
for more than three years, recovery of which was not
assured. (Para 14.3.1)
The Company signed a loan agreement with the Asian
Development Bank for taking a loan of US$ 150 million. In
view of the reluctance of the State Electricity Boards to utilise
the loan, the Company foreclosed the loan to the extent of
US$ 100 million. Consequently, it had to incur an
expenditure of Rs.7.39 crore on payment of upfront fee
and commitment charges. (Para 14.3.2)
DEPARTMENT OF PUBLIC ENTERPRISES
Audit Report No. 11 of 2007 (Regularity Audit)
Airports Authority of India, Air India Limited,
Northern Coalfields Limited, Coal India Limited,
Export Credit Guarantee Corporation of India Limited, Food
Corporation of India, The New India Assurance
Company Limited, National Insurance Company Limited,
United India Insurance Company Limited, The
Oriental Insurance Company Limited, Oil and Natural Gas
Corporation Limited, Hindustan Petroleum Corporation
Limited and National Hydroelectric Power Corporation
Limited .
During test check in Audit, several cases relating to non
billing, non receipt, short recovery, excess payment, undue
benefit to private parties etc. in case of Central PSUs were
pointed. In 21 such cases pertaining to 13 PSUs, where
Audit pointed out an amount of Rs.22 crore for recovery,
the Management of the PSUs recovered an amount of
Rs.15.52 crore during 2005-06.