Delhi govt appoints official for CAG audit: Sources

The Arvind Kejriwal government has appointed additional power secretary Ankur Garg as a nodal officer to coordinate with the Comptroller and Auditor-General (CAG) as the latter prepares to audit Delhi’s private power distribution companies, sources have told CNBC-TV18.

Sources said the appointment was made on the request of the CAG when it wrote to the government seeking its coordination and wanting to know more about the objective of the audit.

Also read:Delhi govt orders CAG audit of pvt power companies

The Delhi government has also written to each of the three discoms in the state asking them to appoint an officer to ensure smooth conduct of the CAG audit, it is learnt.

Kejriwal has accused the discoms, in which the government owns 49 percent each, of overstating expenses to jack up electricity prices and pocket greater profits.

The Delhi Electricity Regulatory Commission fixes electricity tariff based on the discoms’ financials, and after accounting for a fixed percentage of profits for the companies.

As an interim measure till an audit is concluded, the Delhi government, after coming to office, also ordered a 50 percent subsidy till a threshold for consumers. This resulted in a poltical turn to events as opposition parties accused the government was resorting to “populism”.

There were also concerns that any delays by the government in paying out subsidies would result in financial distress for discoms.

But Pramod Deo, former chairperson of the Central Electricity Regulatory Commission, allayed any such concerns saying that the Electricity Act 2003 mandates the government to pay subsidies upfront.