Compliance Performance
Madhya Pradesh

Report 1 of 2017 - PSUs Madhya Pradesh

Date on which Report Tabled:
Fri 24 Mar, 2017
Date of sending the report to Government
Government Type
State
Sector General Sector Ministries and Constitutional Bodies

Overview

The Audit Report contains three Performance Audit i.e. (1) Implementation of Feeder Separation Programme in Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (2) Working of Madhya Pradesh State Electronics Development Corporation Limited and (3) Working of Madhya Pradesh State Civil Supplies Corporation Limited and 15 Compliance Audit Observations.

The major audit findings are as follows:-

Performance Audit

Performance Audit on Implementation of Feeder Separation Programme in Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited revealed several deficiencies and shortfalls in achieving the programme objective of supplying 24 hours continuous power supply to households, minimum eight hours power supply to agriculture pumps in rural area. It is also reported the Company suffered excess Transmission and Distribution losses worth Rs. 9.38 crore. In the execution of programme, avoidable guarantee fee of Rs. 9.55 crore was paid by the Company and Interest of Rs. 24.98 crore was short recovered from the Contractor due to adoption of wrong methodology of levy of interest on mobilization/material advances.

Performance Audit on Working of Madhya Pradesh State Electronics Development Corporation Limited revealed the deficiencies in planning and implementation of Information Technology Policies, regulation of land allotment and incentives under IT Policy, execution of various IT projects of  GoI /GoMP. Revenue loss of Rs. 1.11 crore was incurred due to allowing additional rebate on land allotment to an IT unit Performance Audit on Working of Madhya Pradesh State Civil Supplies Corporation Limited revealed various deficiencies in the procurement, storage, transportation, distribution of foodgrains under the schemes sponsored by GoI and movement of food grains in the State. Excess procurement led to blocking up of funds and interest loss of Rs. 176.01 crore in addition to damage of paddy stocks worth Rs. 114.40 crore.

Compliance Audit Observation

•           Not following of transparent bidding procedure led to awarding of contract at higher rates causing additional expenditure of Rs. 26.13 crore to Madhya Pradesh Power Generating Company Limited.

•           Irregularities in the execution of road project works led to extension of undue benefit to the tune of Rs. 7.07 crore to the contractor by Madhya Pradesh Road Development Corporation Ltd.

•           Short recovery of labour welfare cess from the Contractors by Madhya Pradesh Power Transmission Company Limited resulted in undue benefit of Rs. 5.93 crore to the Contractors.

•           Madhya Pradesh State Agro Industries Development Corporation Limited extended undue benefit of Rs. 5.68 crore to joint venture partners by not adjusting the realizable value of retained gunny bags while finalizing the production cost of RTE products.

Download Audit Report

Epitome_Madhya_Pradesh_Report_1_of_2017.pdf PDF (3.87 MB)

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