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Report No. 41 of 2015 - Performance Audit on Capacity Utilisation, Electricity Generation, Sale and Collection of Revenue including Disaster Management by Hydro Power CPSEs, Union Government, Ministry of Power

Date on which Report Tabled:

Mon 21 Dec, 2015

Date of sending the report to Government

Government Type

Union

Union Department

Commercial

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Sector -

Overview

Hydro power is a renewable and environment friendly source of energy. As hydro power stations have the inherent ability for instantaneous operations, they are more responsive than most other energy sources, for meeting peak demand and improving reliability of the power system. As such it is important that existing hydro capacity is utilised optimally. Four CPSEs viz., NHPC Limited (NHPC), SJVN Limited (SJVN), THDC India Limited (THDC), and NHDC Limited (NHDC), with 23.72 per cent share in the hydro power generating capacity of the country, have a significant role to play in this regard. (Para 1.1)

What does our audit cover?

This report covers activities from generation to collection of revenue by these four CPSEs between April 2009 and March 2014. In the wake of flash flood incident on 16-17 June 2013 at Uttarakhand, specific aspect of disaster management in these CPSEs has also been covered. Audit selected a representative sample of eight NHPC power stations as on 31 March 2014 using Interactive Data Extraction and Analysis (IDEA) software. In respect of remaining three CPSEs, which had one or two power stations, the only power station or the older one of each CPSE was selected. (Para 2.1 and 2.5)

Our major audit findings

Performance audit brought out deficiencies in achievement of capacity utilisation, maintaining reservoir level, carrying out flushing operations for desilting, maintenance of generating units, revenue collection and disaster management. Significant audit findings are summarised below:

Under utilisation of capacity by power stations Average Capacity Utilisation Factor (CUF) of Bairasiul, Teesta-V, Chamera-III and Chutak power stations of NHPC during the period covered by performance audit were below their respective Design CUFs.

Tehri Hydro Power Station of THDC, was designed as a multipurpose project for Full Reservoir Level of 830m. Rehabilitation of families was done by State Government with funds amounting to `972.97 crore provided by THDC. However, THDC has not so far been permitted to fill the reservoir beyond EL 825m. (Paras 3.1.1 and 3.1.2)

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Report No. 41 of 2015 - Union Commercial Full Report
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