Allow CAG audit or lose licence, AAP govt warns power discoms

Pragya Kaushika Posted online: Tuesday, Jan 07, 2014 at 0000 hrs
New Delhi : Lieutenant-Governor Najeeb Jung on Monday warned power distribution companies that their licences may be cancelled if they didn’t abide by rules and cooperate with the CAG audit.

In his address at the Delhi Assembly, Lt-Governor Jung said, “A CAG audit of the power distribution companies in the national capital from the time of privatisation shall be carried out. The government is willing to even consider cancelling the licences of the companies, which do not cooperate with the audit.”

The Lt-Governor also said the government planned to monitor financial transactions made by the discoms to check for violations. “This is an effort to deliver electricity at reasonable rates, electricity meters will be checked,” L-G Jung said.

The L-G was reiterating Chief Minister Arvind Kejriwal’s decision to have the CAG audit the finances of three private power discoms.

The CAG audit comes in wake of the AAP’s poll promise to reduce the power tariff by 50 per cent. However, after forming the government, Delhi Chief Minister Arvind Kejriwal put a rider on the poll promise, which allows only those up to 400 units to avail of the benefits of the scheme. Under the scheme, those who consume more than 400 units will have to pay the entire bill, without a subsidy.

The announcement of subsidy on power tariff has come under criticism, especially from the Opposition BJP. The party claims that the promise to cut power tariff will fall through in the summers.