CAG REPORT 2010 ON THE HYDEL PROJECTS IN SIKKIM - Part 1

The CAG in its 2008-09 report published recently has recommended the State Government to strengthen the monitoring and vigil aspects of the hydle power projects execution by the Independent Power Projects (IPPs).

“Monitoring of execution of projects was virtually non-existent”, said CAG after reviewing the performance of the hydle power thrust of the State government.

The State Government displayed no serious intention to act on the agreement inked with IPPs to have multi- disciplinary committee to monitor the various issues arising during the implementation of the projects, the CAG said. The clause in the agreement regarding constitution of the committee for monitoring the projects was included only on paper, said the CGA.

The CAG further indicated laxity on part of Sikkim Power Development Corporation (SPDC) in monitoring implementation OF THE WELFARE ACTIVITIES IN THE PROJECT AREAS.

“The SPDC was categorically asked to provide details of constitution of the Project Level Welfare Committees for each project with the details of members, minutes of meetings of the committees, reports of committees and the Welfare activities undertaken. No such details could be provided to audit”, said the CAG.

The CAG also pointed out the absence of any mechanism to regularly monitor execution of projects and keep a constant vigil to see if any objects of value were unearthed during the course of execution of implementation.”There was thus , no deterrent in the existing system to prevent the developers or any of their employee/contractor from pilfering any precious materials that may be unearthed during the execution of the projects”, it said.

The report also exposes the lack of adequate experience among the SPDC officers in planning and execution of mega hydro power projects as detailed project of the mini projects of 1 to 2 MW capacity executed by the SPDC were prepared and vetted by either the IIT’s or the Technical Institutions of the Country.

Despite these facts, the technical soundness and economic viability of all projects below 100 MW (total 13 projects) awarded to IPPs were cleared by the SPDC for execution , the CAG said. This was the fraught with the risk of future non-performance , underperformance and non-viability , the CAG said.
The CAG also rejected the reply of the department as no evidence was furnished to substantiate the department’s claim.