CAG Raps Rourkela Steel Plant For Rs 22.83 Crore Loss

CAG Raps Rourkela Steel Plant For Rs 22.83 Crore Loss

The Comptroller and Auditor General (CAG) in its report published in 2017 has accused the management of Rourkela Steel Plant (RSP) of SAIL for wasteful expenditure to the tune of `22.83 crore with unauthorised power supply to a contract firm.The report said RSP had entered into a gas supply agreement (GSA) with Linde India Limited (LIL) in January, 2009 to set up an Oxygen Plant on Build, Own and Operate basis. It was agreed that RSP would provide free power to LIL from its sub-station till commissioning of Air Separation Units (ASUs) of the Oxygen Plant.

The audit pointed out that RSP had violated Regulations 105 and 106 of Odisha Electricity Regulation Commission (OERC) Distribution (Conditions of Supply) Code 2004 as it was not authorised to sell or transfer power sourced from sub-station. Accordingly, power distribution company WESCO in April, 2014 had issued notice to RSP for immediate disconnection of power to LIL citing it to be a punishable offence. In August 2014, WESCO, RSP and LIL reached a negotiated settlement. Read More…

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