- CAG has launched India's largest audit of the power sector focusing on discoms' finances
- The audit will review five years of discoms' losses, debt, procurement, billing, and efficiency
- It will cover 39 discoms and precedes a proposed ₹3 lakh crore central investment in power
The Comptroller and Auditor General of India (CAG) has launched what is being described as the country's biggest-ever audit of the power sector, with a focus on assessing the financial health and operational efficiency of electricity distribution companies (discoms), NDTV Profit has learnt from official sources.
The nationwide audit will be conducted in phases, which will begin with discoms. The CAG will examine five years of their performance, including financial losses, debt, power procurement, billing gaps and distribution efficiency.
The scale of the exercise comes into focus as accumulated losses of discoms have reached ₹3.42 lakh crore, while their outstanding debt has crossed ₹7.26 lakh crore. Their interest burden alone stands at ₹77,653 crore.
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The audit will cover 39 discoms and comes ahead of a proposed central investment of ₹3 lakh crore in the power sector. The exercise is expected to provide a closer look at the financial challenges facing distribution companies and identify gaps in their operations.
What Will CAG Examine In The Power Sector Audit?
The CAG will assess several aspects of discom operations, including billing gaps, electricity procurement practices and the efficiency of power distribution.
The review will also examine the broader power sector, covering renewable energy companies as well as generation and transmission companies.
For the first time, the audit will also include consumer grievances. As part of the exercise, a consumer satisfaction survey covering 10,000 respondents will be conducted to understand the experiences and concerns of electricity consumers.
When Will The CAG Audit Findings Be Released?
The integrated audit will be carried out in phases, with findings expected next year. The reports will subsequently be tabled in the respective state legislatures.
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The exercise is expected to offer a comprehensive assessment of the power sector, bringing financial performance, operational efficiency and consumer-related concerns under the auditor's review.
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