 "CAG pegs water levy loss at Rs 9,500 cr for govt lapses")
The CAG report for the year ended March 2013 on the sector was tabled in the state assembly today.
“The amount includes Rs 7933.53 crore by way of interest on outstanding balances and Rs 331.31 crore pending for collection from 183 industrial units”, SS Dadhe, Principal Accountant General told media persons.
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The significant lapses were noticed on the part of state-run Odisha Hydro Power Corporation (OHPC). Auditors noted that two EEs (executive engineers) did not raise demand amounting to Rs 735.20 crore for supply of water for power generation by OHPC till October 2010 and the reasons for non-levy of water rate were not on the record.
After October 2010, monthly demand for water rate was paid by OHPC.
EE, main dam division, Burla raised the demand for water rate for generation of power by OHPC, without levying interest due at six per cent per annum on arrears prior to October 2010. In respect of other two units, no interest was levied on the outstanding balance even for the period after October 2010. Only the current demand from October 2010 was raised.
Interest escaping levy amounted to Rs 7933.53 crore as of March 2013, the CAG report said.
The report further pointed out that in violation of the law, no flow meter was installed in 282 industrial/commercial organizations out of 427 such organisations surveyed. “Obviously in these cases, the amount to be collected couldn’t be assessed”, he rued.
The absence of rules of specific categorisation of customers, mechanism to regulate the water supply for industrial use and domestic use has led to long drawn disputes between the industrial units involving demands aggregating to Rs 52.85 crore.
The disputed amount include Rs 13.61 crore from Paradip Port Trust and Rs 39.24 crore from Mahanadi Coal Fields.
Similarly, non-implementation of the rules has resulted in non recovery of water rates to the tune of Rs 573.29 crore by the concerned department.