Need for better management of grants-in-aid for power sector

New Delhi. Comptroller & Auditor General of India (C&AG) in one of their latest Audit Reports No.34 of 2016 has highlighted that grants-in-aid given by the Central Government to its Power Sector has increased to Rs. 12388 crore during the last two financial years amounting to 27 Office of Ministry of Power`s (MoP)`s total revenue expenditure. 
 
The grants have flowed primarily under Deen Dayal Urja Jyoti Yojana (DDUJY) for electrifying village households, on augmenting the Integrated Power Distribution System (IPDS) for strengthening the distribution network, as well as to the Power Safety Development Fund (PSDF) for disbursements towards promoting efficiency and safety in grid operations. Major portion (97 %) of the grant-in-aid funds of MoP were intended for creation of assets. C&AG have however pointed out that there were lacunae in fund management by the recipient agencies. 
 
Audit has critised MoP for failure to ensure timely utilization of the grants, long-drawn procedure for transfer to establishments and organizations which were to utilize these resources and parking of the funds at intermediate stages leading to delayed end-use. 
 
Asset registers required to be maintained under Fiscal Responsibility and Budget Management Rules : 2004 were not properly prepared, thereby not enabling monitoring on whether the very purpose for which a portion of the grants was provided ie. for asset creation, was achieved.

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