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Home News Power Sector News Orissa - Govt mismanagement led to power crisis: CAG

Orissa - Govt mismanagement led to power crisis: CAG

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CAGDriven by an administrative apparatus marked with sluggishness, myopic outlook and bad management, Orissa has been relegated from a power surplus to power deficit state, the findings in the latest CAG report indicate. The situation has worsened in the last two years, forcing the state to depend heavily on import of power at exorbitant cost.

The report said actual generation of power from 2005 to 2008 was more than average demand, resulting in "surplus power being exported." The output in the following two years however "decreased due to dip in hydro generation from 900.21 mw to 463.02 mw". The CAG report added: "While peak demand was met by resorting to purchase of power, the total supply even after import was not sufficient to meet the peak demand during 2009-10." The shortfall of about 22 per cent resulted in "rotational load shedding."

By 2005-06 the total installed capacity including state share from Central PSUs was 3510 mw, which increased to 4079 mw by 2010. The CAG report throws light on how delay in finalization of power purchase agreement (PPA), tie-up for loan fund have resulted in two of the four thermal units not being started yet despite approval by the planning commission way back in April 1987, common infrastructure facilities created at a cost of Rs 75 crore and money available for the purpose. "This affected the availability of low cost power in the state," the report observed. The attempt to rope in private industrial houses has not yielded much result either. Despite the spate of MoUs signed, only one unit was commissioned by 2010 August. "As a result the state had to purchase 5421 million units of high cost power from CPPs and other states at extra cost of Rs 660.18 crore during 2008-10," it said.

It added that "inferior" coal received from the MCL was fed to thermal units. Since the coal was of low calorific value, this led to huge consumption of extra coal worth over Rs 72 crore. The report doubted the authorities' contention that coal used had high ash content because the plant design was such that it could use coal with 42 percent ash content. On the low caloric value of coal, the report said in five years "further excess consumption" of 16.34 lakh tons of coal worth Rs 88.54 crore was used.

Source- Times of India


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