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Performance
Karnataka

Report No.9 of Comptroller and Auditor General of India on Implementation of Integrated Power Development Scheme (IPDS)

Date on which Report Tabled:
Thu 18 Dec, 2025
Date of sending the report to Government
Thu 11 Dec, 2025
Government Type
State
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Sector Power & Energy

Overview

Ministry of Power (MoP), Government of India (GoI) launched (December 2014) Integrated Power Development Scheme (IPDS) for strengthening of sub transmission and distribution networks in urban areas including provision of Solar panels, metering of distribution transformers/feeders/consumers in urban areas and IT enablement of distribution sector and strengthening of distribution network for completion of targets laid down under erstwhile Re-structured Accelerated Power Development and Reforms Programme (RAPDRP) by carrying forward the approved outlay for RAPDRP to IPDS.

The scope of work covered creation of new substations along with associated 66kV/33kV/11kV lines, augmentation of existing substations, erection of High-Tension lines including re-orientation/ re-alignment/ augmentation of existing lines, installation of new/ augmentation of existing transformers, Aerial Bunched Cable for high theft prone areas and installation of suitable static meters for distribution transformers and all types of consumers. The IT enablement component envisaged implementation of Enterprise Resource Planning (ERP) and allowed expenses for scaling up the IT resources of RAPDRP part-A towns to those newly added under IPDS.  The Scheme envisaged Power Finance Corporation (PFC) as the Nodal Agency for its operationalisation.  All the five ESCOMS in the State implemented the Scheme.

The IPDS scheme guidelines stipulated funding 60 per cent of DPR cost through capital grant from GoI, 30 per cent from loans from financial institutions and remaining 10 per cent from own funds.  An additional grant of 50 per cent of loan (i.e.15 per cent of DPR cost) was also receivable on achievement of prescribed milestones such as timely completion of the scheme, reduction in AT&C losses as per the trajectory fixed under the Scheme and upfront release of admissible revenue subsidy by State Government based on metered consumption. Further, ESCOMs were eligible for a grant of up to 0.50 per cent of approved project cost towards Project Management Agency (PMA) cost.

A Performance Audit was conducted to assess if the Components of the scheme were planned effectively as per the guidelines, Implementation and execution of works were economical, effective and timely. Also Audit assessed if the financial management of the scheme was done economically and if the scheme was monitored effectively, in order to achieve its objectives. 

The Performance Audit was conducted in all the five ESCOMs of Karnataka, viz. Bangalore Electricity Supply Company Limited (BESCOM), Chamundeshwari Electricity Supply Corporation (CESC), Gulbarga Electricity Supply Company Limited (GESCOM), Hubli Electricity Supply Company Limited (HESCOM) and Mangalore Electricity Supply Company Limited (MESCOM), covering the transactions relating to IPDS from 2014-15 to 2022-23.  The Government of Karnataka accepted all the Audit recommendations and assured that necessary action would be taken, wherever required.

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