CAG finds shortcomings in implementation of the rural electrification schemes

New Delhi: The Comptroller and Auditor General (CAG), has found significant deficiencies in the rollout of two flagship rural electrification programs: the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) including widespread delays and procedural lapses.

In a performance audit report tabled in the just concluded Parliament, the CAG criticized the nodal agency, Rural Electrification Corporation (REC).

Launched in 2014, DDUGJY aimed to enhance power supply duration for rural consumers, bolster distribution infrastructure, and complete pending works from the earlier Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

The scheme had an approved outlay of Rs 75,893 crore, with central budgetary support of Rs 63,027 crore, and closed at an actual expenditure of Rs 64,495 crore (including ₹45,025 crore in government aid).

The audit revealed stark implementation flaws, including delays in awarding contracts for 494 out of 605 projects (over 81 per cent) across 24 states and two Union Territories. Other issues included tardy village inspections, failure to designate model quality villages, and non-adherence to quality assurance guidelines.

The State Level Standing Committee (SLSC), as one of the stakeholders in implementation, was responsible for recommending the detailed project reports (DPRs) for approval and also responsible for monitoring progress, quality control and resolving issues relating to implementation of sanctioned projects.

However, instances were observed where DPRs were submitted to REC without SLSC recommendations.

CAG said DPRs were not based on detailed field survey and eventually, the same were found to be having under/over-estimation of quantities in respect of electrification of village/households, feeder separation and system strengthening in projects.

On the financial front, the CAG has found that REC released grants of Rs 541.56 crore to six out of 27 states and three UTs in the first instalment, which was made 13 to 360 days prior to the date of execution of tripartite/bipartite agreement and appointment of project management agency.

On SAUBHAGYA scheme, the audit report said the initiative was launched in October 2017 for providing last mile connectivity and electricity connections to all un-electrified households. An estimated total un-electrified households to be covered under SAUBHAGYA were 300 lakh.

The SAUBHAGYA dashboard claimed 100 per cent achievement of the electrification target upon the electrification of 262.84 lakh households by March 2019. However, of these 262.84 lakh households, only 151.60 lakh households were electrified under SAUBHAGYA.

All 25 states, where the scheme was implemented, declared that 100 per cent household electrification was achieved between November 2018 and March 2019.

An analysis of the information received during audit and available on the dashboard revealed that estimation of households for electrification shown on the dashboard was reduced to 248.48 lakh from 300 lakh in the scheme guidelines. Achievement of 100 per cent against the target was declared by March 2019 accordingly.

Seven states reported 19.10 lakh un-electrified households as of March 31, 2019. Thus, the audit could not ascertain the genuineness of electrification of households, said the report.