NEW DELHI: The Comptroller and Auditor General (CAG) is ready to start audits of three joint venture power distribution companies (discoms), supplying power in the national Capital, with top officials in the federal auditor's office citing examples of similar exercises of private firms and public private partnership (PPP) ventures in the past.
Delhi has three discoms - BSES Rajdhani Power Limited (BRPL); BSES Yamuna Power Limited (BYPL) and North Delhi Power Limited (NDPL) - and in each the state government holds 49% share and the rest with private firms (51%).
A top CAG official expressed hope that with the Arvind Kejriwal regime willing to ask the federal auditor to examine the books of these companies, the state government may be able to convince the Delhi High Court to permit scrutiny of their accounts on the grounds that similar audits of private companies such as Reliance Industry Ltd's KG D-6 basin had been done in the recent past while another one is in progress. Besides RIL and other oil and gas companies, the CAG had audited several PPP projects in highways and infrastructure sector, including the Delhi airport.
Sources said one of the two private companies having majority share in discoms in Delhi have stopped paying the National Capital Territory (NCT) government share in the revenue it has been collecting. The arrears, on account of the government's share in the revenue with one such private company, have mounted to Rs 1,200 crore.
Audit is likely to reveal other discrepancies like total cash collection and how much it has been shown in the account books of these firms; billing cycle and if customers have been charged as per the actual tariff slabs applicable on monthly basis.
Aam Aadmi Party (AAP) chief and CM-designate Arvind Kejriwal had earlier claimed that then Delhi Electricity Regulatory Commission (DERC) chairman Brijender Singh had in 2010 recommended slashing of tariff by 23% based on his assessment that private companies were making profit as high as Rs 3,500 crore and all their claims of losses were allegedly fictitious.
The auditor, say CAG sources, would also look into certain policy matters where the Delhi government prevented its consumers from open access to choose which discoms to subscribe to. A similar option in Mumbai had led to one operator keeping its tariff 50% lower than its rival.
Kejriwal had also claimed during electioneering that tariffs for domestic consumers could actually be brought down by 50% as the discoms were allegedly fudging accounts by showing zero billing to big customers like the Delhi airport and the Delhi Jal Board (DJB).
with thanks : Times of India : LINK
