Chandigarh, Sept 25: The accumulated losses of Punjab State Tubewell Corporation Limited, a state government undertaking, have reached a figure of Rs 25.04 crore. The company incorporated in December 1970 to promote facilities in the state had incurred losses of Rs 10.78 crore during the five years upto March 31,1997 and its accumulated losses were about Rs 35.04. The latest report of Comptroller General of India says that the company incorporated to promote irrigation facilities in the state could not achieve targets of installation of tubewells due to delayed completion of each stage of installation of tubewells. The operation of tubewells was also far below the projections, thereby depriving farmers of potential irrigation facilities to that extent.The highlights of the CAG report are that against the target of energisation of 282 tubewells the company could energise 203 tubewells, thereby depriving farmers of the state of potential irrigation facilities to that extent. Excess consumption of 6565drilling hours than those provided in revised project for drilling of 119 tubewells resulted in extra expenditure of Rs 32.82 lakh. Delay in installation of 118 pump sets resulted not only in locking up of funds amounting to Rs 7.07 crore but also loss of interest of Rs 27.33 lakh thereon.
During the period under review, the percentage of utilisation of tubewells in terms of operational hours ranged between 57 and 85 and zero and 37.5 in respect of tubewells in operation. Dues outstanding on account of sale of water to farmers increased from Rs 1.37 crore in 1992-93 to Rs 1.81 crore in 1996-97. Of these details of dues of Rs 25.24 lakh were not known to the company.
The report says that failure of company to reconcile the balances with 16 cement suppliers resulted in non-recovery of Rs 37.72 lakh from them. The purchase of substandard works due to consumption of material valued at Rs 45.95 lakh but also in locking up of funds amounting to Rs 50.17 lakh. The report says that management of companyattributed non-achievement of physical targets to prolonged strike by junior engineers and delayed release of funds by the state government. However, a close scrutiny of audit reveals that against anticipated requirement of funds of Rs 57.06 crore for completion of 282 tubewells. Interestingly, however, the company actually spent only Rs 47.90 crore. Surprisingly audit scrutiny further reveals that as per approval of World Bank, drilling and development of 100 tubewells was to be got done by the company through private contractors upto March 1997 but the company made allotments to private contractors and that too of only 55 tubewells as against target of 100 tubewells.
Another interesting fact that has come to light is that a committee constituted by the state government to suggest measures to improve working of company recommended that tubewells operating much below the targets of 1500 hours should be considered for being stopped.
But no action was taken by the management to implement the recommendationsof the committee the CAG report suggests.
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