CAG finds fault with Maharashtra power utility

Mumbai: The report of the Comptroller and Auditor General (Maharashtra) for 2005-06 has shown glaring irregularities in the working of Maharashtra State Electricity Distribution Company Ltd (MSEDCL).

MSEDCL is the main power utility in Maharashtra providing power to almost all the areas of the state excluding Mumbai.

The report has pointed out that the transmission and distribution losses of MSEDCL were 32.58 per cent as at March 2006 despite the company's commitment in a MoU with the Government of India to bring these losses down to 18 per cent by March 2003.

The report pointed out that as on March 31, 2006, 50.17 lakh low-tension consumer installations were due for checking in 12 distribution circles. However, only 1.47 lakh consumer installations have been checked, that too over the period 2001-06. Faulty meters were to be replaced within three months but more than 1.22 lakh out of 4.47 lakh in the state have not been replaced for more than a year.

The report said that the rules of computation of penalty framed by the company regarding theft of electricity did not have adequate deterrent effect and were also not in the financial interest of the company.

It was noticed that the rules relating to working hours, load factor and time ceiling considered for penalty lead to levy of lower penalty, said the report.