Assembly panel cautions MeECL on power purchase

SHILLONG: MeECL has incurred a loss of Rs 13.76 crore by way of purchase of power from Global Energy Private Limited.
The Committee on Public Undertakings in its report tabled in the House on Friday said that the Rs 13.76-crore loss could have been avoided had the government’s financial assistance been made available to the Corporation at the time of procurement of power in 2013.
The Committee after analysing the report of CAG for the year 2014 on the matter said that undue benefit of Rs 13.76 crore was given to the private trader due to purchase of power at higher rates and subsequent sale of power to the same trader at a lower rate.
The Committee recommended that in future, when a power purchase agreement is made with any private trader, care should be taken to incorporate conditions in the agreement to safeguard the interest of the Corporation or to have a flexible Power Purchase Agreement (PPA) which can be adjusted in such a way that neither the government nor the Corporation is put to loss.
Loss of Rs 60.43 lakh
In another case of loss of revenue of Rs 60.43 lakh due to unjustified reduction of penalty imposed on the consumers on account of unauthorised use of electricity, the Committee   observed that reduction of the assessed amount was done at the whim and fancy of the assessing officer.
“Even the requirement of depositing 50 per cent of the assessed amount before reduction of penal amount as required under rule was not insisted upon from the consumers before considering the appeals,” the Committee observed.
The Committee has also recommended that the Corporation should avoid laxity in implementation of rules and regulations pertaining to power charging.