Bhubaneswar, March 31: The Comptroller and Auditor General of India has revealed multiple instances of financial mismanagement and procedural violations across key government-owned companies in Odisha.
In its Compliance and Performance Audit of State Public Sector Enterprises for the period ended March 2023,the CAG found that Odisha Power Generation Corporation Limited (OPGC) incurred avoidable expenditure of ₹24.72 crore due to inefficient coal procurement practices.
The company procured coal from Odisha Coal and Power Limited through a costlier road-cum-rail mode using private railway siding. Additionally, OPGC failed to lift 4.69 lakh metric tonnes of coal from Mahanadi Coalfields Limited under an agreed bridge linkage scheme, further escalating costs.
In another lapse, OPGC extended interest-free mobilisation advances to contractors, deviating from provisions of the OPWD Code, which mandates interest-bearing advances. This resulted in an avoidable interest burden of ₹13.60 crore, reflecting weak financial discipline.
Failed infrastructure project in OPTCL
The Odisha Power Transmission Corporation Limited (OPTCL) was pulled up for mismanagement of a major technology project. A turnkey contract awarded in February 2014 for implementing an Advanced Metering Infrastructure system remained incomplete even after multiple deadline extensions until March 2020.
Despite spending ₹5.37 crore, the project was ultimately discontinued in June 2022 due to failure in conducting mandatory User Acceptance Testing and non-compliance with contractual provisions regarding secure and non-editable meter data. The entire expenditure was rendered infructuous.
The audit also highlighted lapses by Odisha Bridge and Construction Corporation Limited, which delayed payment of Goods and Services Tax on supervision charges following the introduction of the Goods and Services Tax Act. This delay resulted in avoidable interest payments amounting to ₹2.56 crore.
In another instance, Odisha Coal and Power Limited failed to enforce terms of its Mines Service Agreement with a private operator. Instead of holding the operator accountable, the company undertook the work of shifting villagers at its own expense by engaging another agency. This led to avoidable expenditure of ₹2.39 crore and extended undue financial benefit to the contractor.
