Jharkhand CAG Report: Poor transformer purchasing, conductor and pole purchase in violation of regulations

 Jharkhand CAG Report: Poor transformer purchasing, conductor and pole purchase in violation of regulations


The Comptroller and Auditor General's report for Jharkhand reveals irregularities in the Electricity Distribution Corporation. According to the CAG report, the company purchased transformers that fell short of the requirements. These subpar transformers—241—have been purchased. In addition to this, there was a massive violation of the regulations while buying conductors and poles for electricity.




Ranchi. The Comptroller and Auditor General's report for Jharkhand reveals irregularities in the Electricity Distribution Corporation.


According to the CAG report, the company purchased transformers that fell short of the requirements. These subpar transformers—241—have been purchased. In addition to this, there was a massive violation of the regulations while buying conductors and poles for electricity.


The audit of the firm conducted from the financial year 2017–18 to the financial year 2020–21, according to the Comptroller and Auditor General's report, showed that 4755 transformers with a three star rating were acquired in August 2017 for a total of 45.30 crores.


The manufacturing, acquisition, storage, and usage of transformers with a three-star rating were all outlawed by India's Ministry of Power as early as 2016.


Spending 2.76 crore on 241 transformers

Investigation revealed that between July 2017 and March 2021, 241 of these transformers were purchased by seven power supply zones. 2.76 crores were spent on it in total.


This involved the procurement of 17 transformers in Chaibasa, 30 in Chas, 49 in Hazaribagh, 4 in Jamshedpur, 18 in Koderma, 106 in Ranchi, and 17 in Sahibganj.


Spending billions of rupees on the pole and conductor

In addition to this, regulations were broken when electric poles and cables were purchased. A total of 14820.35 km of ACSR and 216883 poles totaling 129.54 crore were acquired.


In this, 17 purchase orders were used to acquire 17500 poles and 6107.62 km of ACSR conductors from outside vendors for a total of 30.49 crore. Their business or


The company's office was in Jaipur, Rajasthan, although it should have been in the state in accordance with the regulations. Only if the lowest bid had been made would the purchase from him have been legal.


excessive costs for purchasing metres

Additionally, the audit uncovered exorbitant metre procurement costs. Five companies—HPL Electric, M/s Genus Power, Larsen & Toubro, M/s Landis Gear, and M/s Secure Meter—participated in a 400 crores tender set aside for this.


Negotiations resulted in the price of Rs 905 per metre being agreed upon. However, in the prior offer, a company had delivered at a rate of Rs 732 per metre.


Despite his concerns, the purchase order was issued at the agreed-upon price. In this instance, The business had to invest an additional Rs 14.85 crore in this circumstance.


irregularities in the accessory purchase

Additionally, irregularities were found in the purchases of consumer metre accessories. The following items were purchased: service pipe, PVC insulated aluminium conductor, service cable, metre board, MCB, support wire and piercing conductor.


In this, 14.28 crore was paid. The study also states that expensive pieces of equipment were bought but never utilised. Such equipment, which was left out in the open, was worthless.


According to audit recommendations, the company should guarantee prompt recovery of any unwanted materials held by independent contractors or field personnel.


Unpredictability found in sewage drainage plan

On the other side, the subject of financial irregularities in the Ranchi sewage drainage network has been brought up in the Accountant General's report. It has been claimed that the 2005-starting project is still unfinished.


Although Manhart, the business that created the DPR, got gold crores, it has still not received the survey points.


In addition to this, a functioning firm received a 15% advance payment, which is against the law, and was also handed 36 crores without a bank guarantee.


Similar to this, the Harmu River's state hasn't changed after spending 100 crores on renovations. Only 20% of the river's capacity for sewage water cleansing has been reached despite the installation of treatment units.


The treatment facility requires an annual electricity payment of Rs 33 lakh, but just Rs 6 lakh has been set aside for its operation.


Information on the availability of transformers and poles is unavailable.

Jharkhand Vidyut Vitran Nigam has also broken the law. The department is unaware of the existence of transformers and poles costing around 12 crores.


In addition, 48 crores worth of transformers were acquired at Level-1 when, by law, they should have been purchased at Level-2.


The Accountant General's report has also drawn attention to the flaws in road building; it claims that because of the Executive Engineer of Ranchi, the sum of Rs. 11.17 crore could not be collected from Sanved even after the project was finished in 5 years.


Similar to this, a bridge has been built on Bundu Rahe Marg, which has been unusable for 6 years since the property needed for an access road was not purchased. Cost was Rs. 1.24.

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