Bhubaneswar: The state government has failed to achieve the objectives of energy sector reforms, the Comptroller and Auditor General (CAG) has pointed out in its report on the state’s Public Sector Undertakings for the year ending March 2016.
The CAG said a Memorandum of Understanding (MoU) was signed in June 2001 between the Union Ministry of Power and the state government for implementing reforms in the power sector with clearly defined milestones. However, the CAG pointed out that many of the targets fixed by the government have not been achieved.
It said that although a target was fixed to ensure 100 per cent metering of consumers by December 2005, only 86.79 per cent consumers were metered till March 2016.
A decision was also taken for 100 per cent metering of all distribution feeders by March 2009. But the government could complete metering of only 84.97 per cent feeders as of March 2016.
Likewise, the decision to ensure 100 per cent electrification of all villages by March 2012 also remains unachieved as the government could provide electricity to only 96 per cent villages by March 2016.
The CAG also highlighted that the target was fixed to bring down transmission and distribution (T&D) losses to 20 per cent by 2009-10. However, last year the T&D losses were 33.71 per cent.
The CAG said that as per the terms of the Orissa Electricity Regulation Act, 1995, four subsidiary companies of Gridco were created in November 1997 to carry on the business of electricity distribution, and they were later privatised in April/September 1999 by divesting 51 per cent of their stock.
“However, due to the revocation of Cesco’s licence, one of the subsidiaries, due to violation of licence conditions, Central Electricity Supply Utility (CESU) was created in September 2006 by the Orissa Electricity Regulatory Commission to undertake the business of Cesco.
Subsequently in March 2015, the licences of the other three Discoms (Nesco, Wesco & Southco) were revoked under Section 19 of the Electricity Act, 2003 and Gridco’s CMD was appointed as administrator,” the CAG said, adding, “Thus, the objectives of restructuring the electricity industry for rationalisation of generation/transmission/distribution of electricity and enhancing efficiency to attract private investment could not be achieved.”
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