Singareni Diesel Misuse of 251 Crore Flagged in Detailed CAG Report

• Singareni diesel misuse of 251 crore highlighted in CAG report
• CAG report reveals excess charges of 1078 crore and losses
• Singareni shows contract lapses financial and governance issues

The Comptroller and Auditor General report presented in the Telangana Assembly has revealed extensive irregularities in Singareni operations, bringing to light diesel misuse worth 251 crore. The audit findings point to serious lapses in financial discipline, contract execution, and operational efficiency.

According to the report, Singareni authorities collected an excess amount of 1078 crore from consumers while fixing coal surface transportation charges without considering actual costs. This has raised questions about transparency and pricing mechanisms within the organization.

The audit further highlighted that failure to implement contract conditions in OBR works on time resulted in an additional financial burden of 74 crore. In coal transportation, inefficiencies and lapses led to losses of about 25.59 crore, adding to the overall financial strain.

Environmental violations were also noted. Contractors involved in OBR works failed to establish waste water treatment systems, and in some regions, costly and environmentally unsuitable materials like river sand were preferred over processed overburden material. The report criticized such practices as both uneconomical and harmful.

The CAG also pointed out that machinery used in OBR contracts carried rates 12.36 percent to 32 percent higher than conventional methods, further increasing operational costs. These deviations from standard practices indicate poor monitoring and weak enforcement of guidelines.

Beyond Singareni, the report provided a broader analysis of Telangana public sector undertakings. As of March 31 2023, a total of 83 state public sector enterprises were under audit, including eight in the power sector and 75 in non power sectors. Among them, 16 were either closed or under liquidation.

Out of 67 functioning enterprises, as many as 49 failed to submit accounts on time, with delays extending beyond three years in several cases. Due to lack of updated financial data, these entities were excluded from performance analysis, limiting transparency.

The audit focused on 18 operational enterprises, which together recorded a turnover of about 95204 crore, contributing 7.25 percent to the state GDP. These entities had a combined investment of 98572 crore in equity and long term debt.

Financial performance remained a concern, as only six of these enterprises reported profits of 3857.48 crore, while 11 units incurred losses amounting to 11969.66 crore. The overall net worth of these companies declined to 50930.63 crore, with several entities witnessing complete erosion of value.

Governance issues were also flagged, including lack of independent directors in nine companies, absence of audit committees in five entities, and failure to conduct board meetings properly. Additionally, nomination and remuneration committees were not formed in several cases.

The report emphasized the need for immediate corrective measures such as strict control over diesel usage, better contract enforcement, timely submission of accounts, revival or closure of non functioning units, and stronger environmental compliance.

These findings have sparked concern over the functioning of public sector enterprises in Telangana, with experts calling for urgent reforms to ensure accountability, efficiency, and sustainable growth.