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Uttarakhand Power Corporation Limited (UPCL), the sole power distribution company in the state, has come under fire from the Comptroller and Audit General of India (CAG) for its gross financial mismanagement with accumulated losses, amounting to Rs 2,065.36 crore in 2012-13.
CAG, in its latest report for the year ended March 31 , 2013, has slammed the state-run discom for failing to recover the cost of energy from different categories of consumers to the extent of Rs 473.78 crore between 2008-09 and 2012-13.
There was loss of revenue which amounts to Rs 196.07 crore due to non-finalisation of "stop billing" cases, according to provisions of the electricity supply code of the Uttarakhand Electricity Regulatory Commission (UERC).
The company suffered a loss of Rs 3.88 crore due to the use of conductors in inappropriate capacity, the CAG said. The UPCL could not realise electricity charges of Rs 178.82 crore and late surcharge of Rs 217.39 crore on the account of delayed payment in respect of 1,206 consumers.
Inappropriate monitoring of recovery certificate by the company resulted in non-realisation of dues of Rs 43.51 crore from 2,539 defaulting consumers, CAG said.
CAG, however, noted the loans (secured and unsecured) have decreased from Rs 1,146.72 crore to Rs 716.92 crore and 2008-09 and 2012-13, whereas the current liabilities and provisions increased from Rs 2,522.74 crore during 2008-09 to Rs 4,367.72 crore in 2012-13., which shows the company is resorting to short-terms loans to meet its working capital requirements.
