Wrong decisions in execution of STPP, says report
The Hindu
It picks many loopholes in STPP execution, operation
The Comptroller and Auditor General (CAG) has observed that wrong decisions in the execution and operation of Singareni Thermal Power Plant (STPP), established as a pit-head unit by Singareni Collieries Company Ltd (SCCL) as part of its plans of diversification due to depleting profitability in coal business, had resulted in a loss of about ₹1,276 crore. In the performance audit of STPP for the period from September 2016, when the first unit of 2×600 megawatt project started commercial operation, to March 2018, the CAG report placed before the Assembly recently faulted the management on several counts. The report pointed out that the thermal power project was conceived on the ground that coal generated from the company’s own mines would be used in it. “The presumption, however, was ignored in the changed reality brought about by the New Coal Distribution Policy of October 2007, under which the coal allocation was to be made centrally, and the Ministry of Coal had allotted Naini coal mines in Odisha to STPP”, the report noted.
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