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Punjab used Rs 425 cr coal in excess, hiking power bill: CAG

Punjab government increased electricity rates in the state between 2008 and 2013 even as it squandered away Rs 426 crore on excess coal at two of its thermal power plants in Lehra Mohabbat (920MW) and Bathinda (450MW).

This has been detected by the Comptroller and Auditor General (CAG) of India in its report tabled in the Vidhan Sabha on Tuesday.

"Fuel (coal and oil) cost is the major component of total cost of power generation. Punjab State Electricity Regulatory Commission (PSERC) allowed fuel cost in their tariff orders on the basis of specific oil consumption, value of coal and heat rate," it said.

"The actual consumption of coal at 15.44 lakh MT, costing Rs 426.60 crore, at these two plants was higher than the norms prescribed by PSERC," it said.

The CAG said there were two reasons behind this -- low quality of coal and no provision for grade slippage at unloading at these plants.

It also said that that the government did not introduce adequate inventory management system for coal and fuel oil, causing coal stock levels to fall below super critical levels on several occasions in the last seven years.

Because of this, the CAG said, the overall cost per unit of electricity for Punjab State Power Corporation Ltd (PSPCL) increased from Rs 204.80 in 2008 to Rs 274.14 in 2013.

"There was scope for improvement in this area by effective monitoring of various elements of fuel cost," it said.

The CAG audit was done at Ropar, Lehra Mohabbat and Bathinda thermal power plants.

Source: The Times of India