The Hindu : New Delhi News : ‘BSES bought equipment on excess rates’

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Sunday, Mar 16, 2008
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New Delhi

‘BSES bought equipment on excess rates’

Staff Reporter

NEW DELHI: Accusing the Capital’s private power distribution companies of exaggerating their losses by purchasing equipment at high rates from their subsidiary companies, Leader of Opposition in the Delhi Assembly Jagdish Mukhi has said the Delhi Electricity Regulatory Commission had informed him through a letter that both the companies of BSES -- BRPL and BYPL -- had made purchases worth Rs.1,428 crore from their subsidiary companies at highly excessive rates.

DERC directive

Prof. Mukhi said DERC had also informed him that of this Rs. 1,428 crore, it had disallowed Rs.525 crore as capital expenditure related to the years 2004-05 and 2005-06. Further, he said, DERC had also issued directions that the above discoms would in future not make purchases of over Rs.1 crore from their subsidiary companies without its approval.

The senior BJP leader said this was not the first time that BSES had been found in the wrong. The party MLA from Rajendra Nagar, Puran Chand Yogi, had also brought an incident to his notice which highlighted how BSES had been showing excessive expenditure.

Prof Mukhi said as Mr. Yogi’s constituency was served by both NDPL and BRPL, he had discovered that while for the same brand of HPSV fitting 150 W with lamp NDPL has charged Rs.1,570 per piece, the BSES had charged Rs.4,380 for it.

Stating that this was a glaring example of how the discoms had been making their purchases, he lamented that the Delhi Government had thus far not taken any action in such matters.

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