The Comptroller and Auditor General of India (CAG) has found many lapses in Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), and in sectors like highways, education and PSUs of Tamil Nadu for the year ended March 2021. It tabled eight reports in the State assembly on Friday.
The audit noted that Tangedco failed to terminate the Power Purchase Agreement with PPN Power Generation which had resulted in avoidable payment to the tune of ₹453 crore. There was also an additional liability of ₹360 crore.
Though PPN was in default, despite a lapse of 15 years, the company defaulted on its commitment to ensure that availability of gas to operate the project, which was originally envisaged in the agreement, and Tangedco failed to issue notice of default as provided in the agreement.
The audit has suggested that Tangedo may terminate the agreement without further delay to avoid further additional or avoidable payments without purchasing any power from PPN.
Cross-subsidy charges
Further, the non- levy of cross-subsidy charges as Captive Generating Plants for non-fulfilment of conditions prescribed under Electricity Rules, 2005, which resulted in a loss of revenue amounting to ₹82.80 crore, the audit said.
There was an undue favour to a solar power generator (Solitaire) to the extent of ₹68.65 crore to non-levy of liquidated damages for delayed commissioning of solar power plant.
On the State Highways, the audit found that despite a lapse of nine years (March 2022) from sanction, the Tamil Nadu State Highways Authority was yet to be constituted. The State government gave its permission in November 2013 to establish the authority to develop State Highways on par with the National Highways by focussing on their formation, quality maintenance and management. Consequently, the envisaged objective of upgradation of State Highway to global standards by utilising the public sector outlays with private sector financing was not even commenced.
The CAG urged the government to allot funds in the Budget to execute spill-over works to avoid diversion of funds by the field officers and consider fixing responsibility on the officials responsible for diversion of funds, said the report, which was placed in the assembly on Friday.
Enrolments hit
Despite stellar performance at all India level in terms of Gross Enrolment Ratio, the enrolments in Secondary and Higher Secondary levels in government-run schools declined by 14.76 per cent and 11.84 per cent respectively during 2016-21, even as the enrolments keep increasing in private schools.
GoTN’s Policy and the New Education Policy (NEP), 2020, reiterate that the curriculum must inter-alia include games, sports and fitness. Further, GoTN and NEP aims to discover, nurture and foster the innate talents in every student through co-scholastic activities.
However, government schools compared poorly with private schools in pass percentage also. Government schools did not attach due importance for co-scholastic activities as only 11 per cent of the schools had NCC and only about 30 per cent of the schools had NSS or organised annual sports meets.
Both government-run and government-aided schools performed poorly in facilitating co-scholastic activities. The audit observed that the schools did not provide a conducive environment to bring out the innate talents in the children, the report said.