CAG blames MeECL for non-realistion of dues
SHILLONG: Tardy action by the Meghalaya Energy Corporation Limited (MeECL) to recover electricity dues from M/s JUD Cement Private Limited, located in Wahiajer, Jaintia Hills district, has resulted in the dues accumulating to Rs 9.91 crore as of September, 2012.
Under Section 56 of the Electricity Act, 2003, the MeECL is empowered to disconnect the electricity supply after serving notice of not less than fifteen clear days if a consumer defaults in paying the electricity bills.
“It was observed that the outstanding balance at the end of each month (during the period from March, 2010 to May, 2011) increased exponentially from Rs 0.47 crore in March, 2010 to Rs 9.91 crore in September, 2012,” according to Comptroller and Auditor General of India (Social, General and Economic Sectors and Public Sector Undertaking) report for year ended March 31, 2012.
During the period from March, 2010 to May, 2011, the outstanding dues against the cement plant had mounted to Rs 9.65 crore inspite of leniency shown by the company (MeECL) by allowing deferment of the payment date and re-schedulement of outstanding dues on three occasions, the CAG report revealed, while adding that the cement plant did not honour its commitment of payment of dues within the rescheduled date.
“During this period, 11 cheques valuing Rs 3.35 crore given by the consumer against the outstanding dues bounced. Thereafter, the company on June 30, 2011 disconnected power supply to the consumer,” the CAG report said.
Immediately after the disconnection of the power supply, the cement plant on July 18, 2011 requested for revision in payment schedule, i.e., Rs 1 crore every 15-20 days, which was agreed by the company, the CAG report said, adding that the consumer paid Rs 2 crore on July 26, 2011 and its power supply was restored.
The cement plant again started defaulting in payment and requested the company for extension of due dates of payment, citing reasons of cash constraints. The MeECL again allowed accumulation of outstanding balances to mount to Rs 9.59 crore during November, 2011, the CAG report said.
Instead of clearing the outstanding dues, the cement plant on November 23, 2011 proposed a revised payment schedule of Rs 1 crore every five days with effect from December 1, 2011 to December 15, 2011; Rs 2 crore between December 15, 2011 to December 31, 2011 and Rs 3 crore between January 1, 2012 to January 10, 2012.
The report revealed that the company accepted the proposal subject to payment of Rs 1 crore by December 5, 2011.
“The cement plant again defaulted and the MeECL disconnected power supply to the consumer on December 9, 2011. The power supply was once again restored on December 28, 2011 after receipt of Rs 2 crore from the consumer,” the report said.
“As on September, 2012, the outstanding dues balance against the consumer had increased to Rs 9.91 crore (including delayed payment charges of Rs 5.04 crore) inspite of allowing repeated revisions to the schedules of payments by the company,” the CAG report said.
It was observed that even after revising the payment scheduled, outstanding balance on electricity charges against the consumer had increased by Rs 0.32 crore during the period from November, 2011 to September, 2012.