CAG pulls up state power generator for turning blind eye to maintenance protocol at power plants, leading to a loss of 3,100 million units over four years
While many households in the state, especially those in the interior regions, had to make do with intermittent power supply for four years starting 2010-11, state-owned power generator Mahagenco squandered 3,100 million units (360 MW) worth Rs752 crore, as it could not be bothered to maintain five of its thermal power plants, which saw frequent breakdowns.
Moreover, negligence related to other factors - such as non-performance leading to forfeiture of bank guarantee, machines lying idle and so on - also piled up losses amounting to a total of Rs 874 crore to the state exchequer, as pointed out by the Comptroller and Auditor General of India (CAG) in its latest report.
It bears mentioning here that the company spent Rs1,818 crore on repairs and maintenance over the same period, but poor planning rendered the effort useless.
Incidentally, this carelessness came at a time when there was an 8.6% gap between demand and supply in 2013-14, the year during which power generation stood at 17,621 MW, way behind the peak demand of 19,276 MW, as stated in the Central Electricity Authority report.
Over 85% of the monetary loss is attributed to outages at the plants and consequent loss of power generation, all thanks to blatant violation of protocol and "avoidable" delays in overhauling equipment, the CAG report states.
The auditors looked into the accounts from years 2010-11 to 2013-14 of five of the seven coal-based power plants at Bhusawal, Parli, Chandrapur, Paras and Khaperkheda which have a total installed capacity of 6,730 MW. They also inspected ash handling plants, coal mill pumps and fly ash collectors installed in the plants.
Auditors found that the availability factor (amount of time for which a plant is able to produce electricity) of "the five power stations was between 26.66% and 83.85% ... as against the prescribed minimum of 62-85% as prescribed by the Maharashtra Electricity Regulatory Commission."
Not just that, the company's ash handling plant at Bhusawal was out of service for a year. "Though Mahagenco blamed it on BHEL's manufacturing, it didn't seek recovery of replacement cost Rs11.36 crore from the company at least till October 2014," states the CAG report.
Though the company is supposed to conduct regular maintenance exercises, the audit found out that Mahagenco performed them halfheartedly. It failed to carry out annual and capital overhaul, which must be conducted every five years. Between 2010-11 and 2013-14, out of 61 units planned for annual overhaul, only 29 units were taken up. Besides, among 14 units slated for a five-year overhaul, only seven were attended to.
Mahagenco's major losses: 2010-11 to 2013-14
Rs752 crore: Loss due to declined power generation
Rs67 crore: Loss at new units due to non-maintenance
Rs3.69 crore: Bank guarantee forfeited due to non-performance
Rs11.36 crore: Non-recovery of funds from BHEL
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