CAG report nails govt agency for solar project flaws

The failure of the Karnataka Renewable Energy Development Limited (KREDL) to properly implement the Solar Photovoltaic (SPV) Programme of the Union Ministry of Non-Conventional Energy Sources (MNES) for the years 2005 to 2007 has resulted in losses to the tune of crores of rupees.

Also, a probe into the implementation of the programme has revealed several irregularities in releasing money to suppliers, who had not participated in the tender process, the Comptroller and Auditor General (CAG) report has said.

An external agency, appointed by the Board of Directors of KREDL to investigate lapses in the implementation of the programme, too revealed financial irregularities.

The SPV programme aims at providing an alternative source of energy for rural lighting, water lifting and other small requirements through the photovoltaic method, wherein electricity is generated by converting solar radiation into direct current using semiconductors.

The objective of the programme is to reduce consumption of kerosene for lighting purposes and improve the overall quality of life in rural areas.

The CAGâreport has highlighted non-compliance with the instructions of the Central Vigilance Commission with regard to evaluation of bids and release of subsidy.

As per the programme implementation guidelines, KREDL has to invite bids from eligible manufacturers for supply and installation of SPVs. Between 2005 and 2007, as many as seven agencies supplied SPVs to KREDL.

The suppliers claimed that 19,066 SPVs were installed between 2005 and 2007, as against 11,760 SPVs sanctioned by the MNES.

However, subsequent inspection in September 2010 by KREDL revealed that only 4,089 SPVs were installed during the stated years. Though the subsidy allowed was Rs 1.99 crore, the KREDL had released Rs 2.91 crore to the suppliers, thus paying Rs 92 lakh in excess.

Subsidy not utilised

Moreover, the State could not utilise the subsidy of Rs 3.46 crore sanctioned by the MNES due to poor implementation of the programme.

As a result, the State government was asked to return the Central financial assistance, thus defeating the objective of the programme.

The programme implementation guidelines require the implementing agencies to monitor the performance of SPVs installed under the programme. The State nodal agencies are required to inspect 10 per cent of the SPV systems installed.

All these norms have been flouted, the CAG report stated.