The delay in completion of the Sardar Sarovar hydropower project by SSNNL has till date cost the state exchequer Rs2,096.84 crore more than the estimated cost.
The delay in completion of the Sardar Sarovar hydropower project by Sardar Sarovar Narmada Nigam Ltd (SSNNL) has till date cost the state exchequer Rs2,096.84 crore more than the estimated cost.
The Comptroller and Auditor General (CAG) of India observed in its annual report for 2008, tabled in the state assembly on Tuesday, that the estimated cost of construction and commissioning of hydropower houses of the Sardar Sarovar project increased from Rs979.95 crore in 1986-87 to Rs3,076.79 crore in 2005-06.
Against the scheduled commissioning of units of riverbed and canal head power houses between August 1994 and April 2006, the units were commissioned only between August 2004 and June 2006.
“The company implemented the hydropower project with cost and time overrun. It did not conduct performance tests for both the power houses. The capital as well as operations and maintenance cost were not recovered fully from the participating states,” the CAG said in its annual report.
The CAG said that deficient contract management and a weak internal control system of company led to excess payment of interest, incorrect revision and fixation of item rates for civil works, payment of price escalation on lump sum items, non-availing of excise duty refunds, non-recovery of liquidated damages, inadequate control over the activities of operations and maintenance operators, and a delay in issuance of energy bills.
“Corrective actions were not taken to control excess auxiliary consumption and transformation loss. Adequate seismological monitoring mechanism was not in place and the power houses were not insured against any peril,” the report said.
The CAG further observed that in the management of contracts related to civil and electrical works for the construction and commissioning of power houses, instances of extra expenditure of Rs58.7 crore due to incorrect fixation and revision of rates in the contracts were noticed.
“In the absence of any clause in the agreement entered with Bharat Heavy Electricals Ltd (BHEL) for procurement of power equipment, the company was unable to avail the benefit of refund of terminal excise duty of Rs13.62 crore available under the export-import (EXIM) policy for 1997-2002,” the report said.
The auxiliary consumption and transformation loss of the units of both riverbed and canal head power houses exceeded the norms fixed in this regard by the Central Electricity Regulatory Commission, leading to a loss of 80.995 MUs of power.
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