CAG REPORT ON UMPP PDF

The report of the Comptroller and Auditor General of India CAG , parts of which have been seen by Mint, is with the power ministry for its comment, and could cause further embarrassment for the government. Ltd PFC , the government body appointed by the power ministry to award the projects. The auditor also censured the government for the way it dealt, in , with the consortium of Lanco Infratech Ltd and Globeleq Singapore Pte after it was discovered that they had misrepresented details in their winning bid for Sasan. Following the disqualification of Lanco and Globeleq, the project was awarded to Reliance Power. CAG further said that a review of the projects awarded to Reliance Power showed delays. The auditor pointed out that in the case of Sasan, the commissioning date of the first unit has been extended by 14 months from the revised deadline of December , and that in the case of Tilaiya, Reliance Power has not achieved financial closure even two years after the transfer of the SPV resulting in the possibility that the first unit will not be commissioned by May as scheduled.

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The Comptroller Auditor General's report on ultra mega power projects UMPPs has slammed the government for letting project developers dictate terms to it. The report identifies lack of transparency and fair play from the time of awarding contracts and appointment of consultants to the time of execution of these projects, which are ostensibly aimed at providing cheap electricity. The report says RPL made profits worth Rs 29, crore with a net present value of Rs 11, crores as the empowered group of ministers EGOM allowed the diversion of surplus coal from one of the three coal blocks allocated to RPL to its other 3, MW power project in Chitrangi tehsil of Singrauli district in Madhya Pradesh.

UMPPs employ super critical technology, which involves deriving high steam turbine power in lower steam temperatures. The Ministry of Power MoP conceived these projects in CAG conducted the audit with a very specific mandate. According to CAG report, titled Ultra Mega Power Plants under Special Purpose Vehicles , released on August 16, the audit was conducted to obtain a reasonable assurance on the competitiveness of the standard bidding documents SBDs , bidding process and to assess whether selection of project developers and consultants was done with objectivity and in a transparent manner.

The audit was also conducted to ascertain whether land was acquired and captive coal blocks were allocated to the developers as per their optimum requirement. The first audits began during the entry conferences of PFC in September Since a very important role was played by MoP in this, audit was again conducted in August-September, to assess the action taken by the management of PFC, the power ministry and EGOM, on the issues flagged to them.

The draft report was issued to MoP in October-November, and their response was received in December, and January, Adopting the criteria of net worth to assess the experience and worthiness of bidders for UMPPs as in the case of DMRC would have adversely affected the bidding process and limited competition which would result in higher tariff.

The rider for the use of the incremental coal, incidentally comes with safeguards, such as Sasan UMPP—which is also a part of RPL—will always have the first right and overriding priority over all coal produced from the allocated blocks and the power generated by utilising such coal would be sold through tariff-based competitive bidding.

Private consultant favoured over public company. The report also reveals the violations committed by the appointment of consultants for bidding management of these projects. ICRA Limited, formerly Investment Information and Credit Rating Agency of India Limited, a public limited company, despite having the lowest bid to serve as consultants for bidding process with requisite technical expertise, were not awarded bids.

The consultant, according to the report, also played a big role in equity stake of the developers on SPVs from 51 per cent to 26 per cent. Developers allowed to retain excess land. CAG audit also found discrepancies in using land resources for two of the projects in coastal areas. An excess of EGOM allowed the excess land to be retained by the developers instead of utilising the same for other public purposes. It is clear from one of the recommendations that that the private companies violated the rules right from the bidding process and the empowered ministers now could only monitor the physical progress of these projects.

We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together. Please use a genuine email ID and provide your name. Private consultant favoured over public company The report also reveals the violations committed by the appointment of consultants for bidding management of these projects.

Developers allowed to retain excess land CAG audit also found discrepancies in using land resources for two of the projects in coastal areas. Subscribe to Weekly Newsletter :. Donate Now. Post a Comment. Please Sign In to post a comment.

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Parliamentary panel studying CAG report on power projects

All rights reserved. For reprint rights: Times Syndication Service. Vodafone Idea. Market Watch. Pinterest Reddit. Leaked draft reports of the CAG had mentioned that the government's decision to allow Reliance Power to use surplus coal from mines attached to ultra mega power projects UMPPs at Sasan and Tilaiya had given undue gains for the company.

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The Comptroller Auditor General's report on ultra mega power projects UMPPs has slammed the government for letting project developers dictate terms to it. The report identifies lack of transparency and fair play from the time of awarding contracts and appointment of consultants to the time of execution of these projects, which are ostensibly aimed at providing cheap electricity. The report says RPL made profits worth Rs 29, crore with a net present value of Rs 11, crores as the empowered group of ministers EGOM allowed the diversion of surplus coal from one of the three coal blocks allocated to RPL to its other 3, MW power project in Chitrangi tehsil of Singrauli district in Madhya Pradesh. UMPPs employ super critical technology, which involves deriving high steam turbine power in lower steam temperatures. The Ministry of Power MoP conceived these projects in

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