The Hindu : New Delhi News : Delhi Jal Board's largesse lands it in a financial mess

Online edition of India's National Newspaper
Friday, Apr 27, 2007
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Delhi Jal Board's largesse lands it in a financial mess

Staff Reporter

NEW DELHI: The Delhi Jal Board's largesse for its employees living in the staff quarters of the Sewer Treatment Plant (STP) at Keshopur has landed the water utility in a financial mess. Instead of seeking separate electricity connections for these employees, the Jal Board allowed them to draw power from the bulk connection meant for the STP, which is paid for at commercial rates, while recovery was made from the occupants at nominal fixed slab rates. The result has been "an avoidable financial loss of Rs. 86.86 lakh".

Instead of seeking electricity from the local bodies, the Jal Board violated the rules stipulating that each allottee should approach the local bodies for electricity and water connections immediately on allotment of government accommodation.

"The electricity charges are to be borne by the allottees. For this purpose, separate electricity connections are to be arranged from the power utility and the power consumed charged for at the prevailing domestic rates," the Comptroller and Auditor General of India has noted in its latest report.

"In November 2002, it was decided that the practice of charging flat rates for connections taken from the plants should be discontinued forthwith. This was again reiterated in January 2003. Test check of the records of the DJB revealed that the Board had allotted 145 residential quarters of types I, II and III to its staff at STP-1 Keshopur between January 1990 and 1996.

The power connection for these residential quarters was derived from the main bulk connection at the plant meant for operating the STP for which DJB was effecting recovery from the allottees at flat rates of Rs. 110, Rs.120 and Rs.14 for types I, II and III respectively fixed by the Board prior to December 2002 whereas electricity charges were being paid by DJB on commercial rates which ranged from Rs.2.40 per unit to Rs.4.90 per unit," the report mentions.

On the basis of a monthly average consumption of 162 units per consumer, the DJB sustained an avoidable financial loss of Rs. 86.86 lakh towards electricity charges paid to DVB/BRPL2 for the period from April 1996 to April 2006.

The CAG has pinned the blame for the "avoidable financial loss" on "lack of serious action on part of the DJB to segregate power supply to residential quarters and ensure that the allottees pay their electricity dues at the prevailing domestic rates".

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