SHILLONG: The Comptroller and Auditor General has revealed that the MeECL extended undue benefits of Rs.13.76 crore to a private power trader by purchase power at higher rates from the private party while selling power to the same party at a much lower rate.
The CAG report for the year ended March 31, 2014, pointed out that MeECL signed two power purchase agreement with M/S Global Energy Private Ltd. (GEPL) for sale of 12 MW round the clock power in July and August 2013 at the rate of Rs.1.95 per unit.
MeECL sold 49.13 million units of power to GEPL valued at Rs.9.58 crore during the period from June 21 to October 15, 2013 at the rate of Rs.1.95 per unit while purchasing power from the same trader at the escalated rate of Rs.4.75 per unit which is tantamount to extending undue benefit to the private trader.
The CAG revealed that MeECL did not invite any tender and directly approached GEPL for sale of power at Rs.1.95 per unit per report. MeECL had also failed to enter into a power swapping agreement with GEPL at the time of signing the power purchase agreement, which is the standard practice in power trading business, the CAG report observed. The CAG further stated that MeECL’s power purchase agreement with GEPL provided that either party shall not set off any particular amount from any other transactions from the other party. However, MeECL purchased power from GEPL at Rs.4.75 per unit between December 2012 and March 2013 and sold power to the same trader at the rate of Rs.1.95 per unit from July 2013 to October 2013 with due disregard to the signed power purchase agreement, providing undue benefit of Rs.13.76 crore to the private trader.
The CAG report states that the matter was reported to the State Government by the CAG and the reply is awaited.
