Ensure Escoms reduce AT&C losses, CAG recommends to govt.

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The CAG has besides  recommended ensuring timely merchandise  of subsidy for irrigation pumpsets arsenic  per metered consumption.

The CAG has besides recommended ensuring timely merchandise of subsidy for irrigation pumpsets arsenic per metered consumption. | Photo Credit: record photo

The Comptroller and Auditor-General of India which audited the Integrated Power Development Scheme (IPDS) successful Karnataka has recommended that the State authorities guarantee that the Electricity Supply Companies (Escoms) trim the Aggregate Technical and Commercial (AT&C) losses arsenic per the trajectory fixed by the Union Ministry of Power (MoP).

The CAG has besides recommended ensuring timely merchandise of subsidy for irrigation pumpsets arsenic per metered consumption.

The CAG recovered that portion the approved outgo (including PMA charges of ₹6.87 crore) of the IPDS was ₹1,378.44 crore and the awarded outgo was ₹1,721.19 crore., the Escoms incurred the existent expenditure of ₹ 1,489.33 crore (as of March 2023), i.e., Escoms incurred excess expenditure of ₹ 110.89 crore than the sanctioned outgo successful implementing the scheme, which included further expenditure to the grade of ₹ 38.52 crore owed to non-procurement of materials astatine Central Procurement Prices discovered by MoP.

It besides pointed retired that non-compliance of assorted requirements for securing further grants resulted successful nonaccomplishment of accidental to person further assistance of 15% of the project.

Better billing

At the aforesaid time, CAG acknowledged that the billing ratio of Hescoms had mostly improved during the strategy play publication to simplification successful billing losses.

The CAG recovered that while successful August 2015, in-principle support to DPRs of each 5 Escoms valued astatine ₹1,138.75 crore was granted and works were to beryllium awarded wrong six months and completed wrong 24 months, Escoms took took 11 to 27 months to grant works, starring to important delays.

In the study it is mentioned that the Escoms awarded contracts successful usurpation of KTPP Act and Rules by providing little clip for submission of tenders, ranging from 15 days to 54 days against the stipulated minimum clip of 60 days and by awarding works astatine precocious tender premiums exceeding the estimated outgo by 5% to 34%.

CAG audit besides recommended that the State government may guarantee that Escoms whitethorn devise a suitable mechanics to contented tenders successful time, to instrumentality up works without hold and to guarantee completion of works successful clip to execute the envisaged objectives.

Further Escoms whitethorn travel clip frames arsenic per KTPP Act and Rules to guarantee capable contention and to let marketplace find for astir economical rates.

The Escoms whitethorn guarantee that broad feasibility surveys were conducted earlier task execution and whitethorn see conditions of modular bid documents successful invitation to bids and guarantee adherence to the aforesaid portion executing works, the study said.

Published - December 18, 2025 06:24 p.m. IST

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