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| Farooq gave Rs 266 cr for hydel projects in Ladakh ignoring norms | | Renewable Energy Initiative goes wrong! | | Syed Junaid Hashmi
Early Times Report
JAMMU, Dec 10: Ex-Union Minister for New and Renewable Energy Dr. Farooq Abdullah and ex-Chief Minister Omar Abdullah's much touted Ladakh Renewable Energy Initiative (LREI) for promotion of Renewable Energy (RE) in Ladakh region is yet to see light of the day.
Five years have passed since the project was sanctioned in June 2010 by the then Union Minister for New and Renewable Energy but the Micro/Mini Hydro Power projects which were supposed to be completed by December 31, 2013 are yet to be commissioned/ made operational. Courtesy: The 'non-serious and frivolous' approach of ex-Minister Dr. Farooq Abdullah can be gauged from the fact that the projects worth Rs. 266.80 crore for Ladakh region were sanctioned without allotment of land, statutory environmental, forest, irrigation clearances and technical approvals.
This resulted in slow progress in the execution of projects since these mandatory requirements were taken up after sanctioning of the project. Project is being implemented by two agencies: Leh Renewable Energy Development Agency (LREDA) and Kargil Renewable Energy Development Agency (KREDA). Both are registered as Societies under Jammu & Kashmir Societies Registration Act 1941.
According to the audit report, MNRE sanctioned Rs. 266.80 crore but it released only Rs. 44.25 crore and the expenditure was only Rs. 41.98 crore. Audit also observed that MNRE had released funds of Rs. 1 crore for trees and land compensation during November 2011 but KREDA had not identified status of land by August 2014. Due to this avoidable delay, Rs. 0.99 crore had remained unutilized as of August 2014.
Kargil Renewable Energy Development Agency (KREDA) however, had shown these funds as utilized in the utilization certificates for the year 2012-13. This indicated that the agency had reflected incorrect position in the utilization certificates. When audit asked the New and Renewable Energy Ministry to explain reasons for the same, they said that the status of land had been taken up with Assistant Commissioner (Revenue), Kargil and remaining amount of tree and land funds had been utilized for other SHP purposes, being the scheme under SHP head.
Despite sanctioning of the project in June 2010; LREDA and KREDA allotted investigations and preparation of Detailed Project Reports (DPRs) in respect of 31 micro-hydroelectric projects (MHPs) between August 2010 to August 2012. This is several months after the project was sanctioned by the New and Renewable Energy Ministry. The late surveys resulted in projects being revised downwards to 17.10 MW for an estimated cost Rs. 219.58 crore.
Audit found out that none of the projects has been completed. On deeper probe, it found out that LREDA and KREDA allotted 17 mini hydro power projects to contractors for development without ascertaining status of land of identified sites of these projects, taking statutory environmental clearances, forest clearances, irrigation and land clearances and technical approvals. Besides, LREDA and KREDA had incurred an expenditure of Rs. 41.98 crore on these projects without land acquisition and obtaining technical approval.
The New and Renewable Ministry which was then headed by Dr. Farooq Abdullah never bothered to find out whether construction work was going on or not but in November 2011 released Rs. 1 crore for land compensation. Even this small amount was diverted due to absence of surveys as it was not ascertainable whether land was Government, forest or private land.
Audit scrutiny revealed that the Project Director, KREDA had prepared cost estimates and invited in June 2010 tenders for "surveys, investigation and preparation of DPR and supervision till successful commissioning" for 10 MHP projects. However, the orders were placed in August 2010 for surveys, investigation, detailed engineering design and preparation of DPR at a cost of Rs. 2.11 crore omitting 'the supervision till successful commissioning' without corresponding reduction in the cost.
Thus, alteration in the scope of work in the contract without corresponding reduction in price indicated that undue benefit was given to the contractor with an extra expenditure of Rs. 1.35 crore incurred on preparation of DPRs of 10 projects by KREDA. Audit further observed that physical progress in respect of these projects was poor even though an expenditure of Rs. 21.94 crore had been incurred in June 2014.
Audit further found out that construction work in respect of four projects - Khandi, Sangrah, Bairas and Chilong was in the initial stage and construction work in respect of remaining three projects Raru, Matayeen and Zunkul had not been started in June 2014. LREDA allotted projects to be completed by October 2013, but progress of civil works and pen stock works of six out of 10 projects was slow.
It was observed that the village Saliskote in Kargil district was covered under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) for Chutak hydro project (2010-11). As a result of this one power plant of 65 kW approved in September 2010 for Saliskote village was shifted to another village Prachik Yogma, but another power plant of 40 kW installed in December 2011 in the same village was not shifted. Further, another SPV power plant of 75 kW to be installed at Hardass village was shifted to Saliskote village in December 2011, despite the village being already covered under RGGVY.
Thus the expenditure of Rs. 2.01 crore (cost of 75 kW) incurred by KREDA was avoidable. Audit observed that Ladakh Renewable Energy Development Agency and Kargil Renewable Energy Development Agency did not undertake comprehensive feasibility studies to assess the total hydro power potential.
Though the two implementing agencies viz. Ladakh Renewable Energy Development Agency and Kargil Renewable Energy Development Agency set targets of 11.2 MW (revised to 6.10 MW) and 12.50 MW (revised to 11 MW) respectively during 2010-14, neither of the two agencies were able to put in place any capacity during the period. Even after four years not a single Small Hydro Power/Mini Hydro Power project was installed.
Audit further observed poor due diligence in implementation of sanctioned projects, such as allotment of land without taking statutory environmental, forest, irrigation and land clearances and technical approvals, excess payments to contractors, diversion of funds besides non-completion of projects. Monitoring mechanism was also found to be deficient.
Audit observed that off-grid solar power projects were sanctioned by MNRE without conducting feasibility studies. As a result, two solar plants were installed in a village that was already covered under Rajiv Gandhi Grameen Vidyutikaran Yojana and 702 Solar Home Lighting Systems were distributed to ineligible beneficiaries. There were deficiencies in implementation of the projects.
It was further observed that contracts were awarded without adhering to bidding document requirements. Instances of excess payment to contractors and awarding of contract without establishing reasonability of rates were also noticed. |
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