Dues from electricity consumers top Rs 6,000 cr in Karnataka

The dues from electricity consumers have mounted to more than Rs 6,000 crore in Karnataka, a latest CAG report has revealed.

“The dues from consumers increased from Rs 3,998.48 crore in 2006-07 to Rs 6,378.20 crore in 2010-11”, according to the performance review of power distribution utilities of Karnataka by CAG, tabled in the just-concluded session of the legislature. Further, an amount of Rs 217.61 crore was due from permanently disconnected installations.

It noted that electricity supply companies (ESCOMs) are required to file expected revenue with the Karnataka Electricity Regulation Commission (KERC) each year, 120 days before the commencement of the subsequent financial year.

ESCOMs filed tariff review petitions belatedly in 2009-10 and 2010-11. “This had resulted in delayed implementation of tariff orders. Timely filing of tariff review petitions would have resulted in generation of additional revenue of Rs 941.08 crore”, the CAG pointed out.

PSU functioning

The audit also observed various deficiencies in the functioning of the PSUs. A review of three years' audit reports showed that the PSUs' losses of Rs 1,320.47 crore and infructuous investments of Rs 333.27 crore could have been reduced with better management.

“There was tremendous scope to improve their functioning and enhance profits. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in their functioning”, it said.

As on March 31, 2011, the investment (capital and long term loans) in 89 PSUs was Rs 58,137.26 crore. The infrastructure and power sectors accounted for 54.30 per cent and 32.09 per cent of the total investment, respectively.

The government contributed Rs 8,880.72 crore towards equity, loans and grants/subsidies during 2010-11, the CAG said.

A year ago, the State had 89 working PSUs (69 working government companies, 14 non-working companies and six working statutory corporations), which employed 1.82 lakh employees.

The State PSUs registered a turnover of Rs 41,493.51 crore in 2010-11 according to their latest financial accounts, which was equal to 10.89 per cent of the State Gross Domestic Product. The PSUs had accumulated profit of Rs 1,007.36 crore, as per their latest finalised accounts.