The Delhi government has ordered a CAG audit of the city's power distribution companies, giving them a three month deadline to complete the process. The demand for such an audit had been raised for years, but the power companies had consistently resisted it. After the matter reached the courts and the companies failed to get any relief there, the Delhi government went ahead and issued a direct order for the audit.
How did profitable companies rack up dues of Rs 38,000 crore?
The core question the Delhi government wants answered is how the power companies ended up owing Rs 38,000 crore when they are not running in losses. In fact, these companies are said to be profitable, and a share of that profit is already being passed on to the Delhi government. That raises an obvious question: if the companies are earning and handing over their share of profits to the government, where exactly did such a massive pending amount of Rs 38,000 crore come from. The government now wants to get to the bottom of this contradiction.
First ever CAG audit of power discoms in Delhi
This will mark the first time that a CAG audit of power distribution companies is being carried out in Delhi. The government expects the exercise to reveal exactly what lies behind the Rs 38,000 crore in outstanding dues. Its position is straightforward, if the companies are profitable and are already sharing part of that profit with the government, there ought to be a clear explanation for why such a large sum remains unpaid.
Kejriwal raised the issue but the audit stalled until Rekha Gupta's government
Delhi's former CM Arvind Kejriwal had earlier spoken about getting a CAG audit done on the power companies, but it never materialised during his tenure. It is now under the Rekha Gupta government that the audit is finally going ahead. According to the Delhi government, the objective behind the audit is to protect consumer interests and bring transparency to the power sector. If the investigation uncovers any financial irregularities, action will be taken against those responsible.
What the audit will examine
As per the Delhi government, the CAG audit will involve a detailed examination of the power companies' financial records, including their revenue, expenditure, subsidies, the cost of purchasing electricity, and all documents linked to the outstanding dues. The aim is to establish the real reason behind the pending amount and to check whether there has been any lapse in financial management or in how records were maintained. Only once the audit is complete will it become clear whether the Rs 38,000 crore in dues is genuine or whether it conceals some irregularity.
