Bokaro Power Supply lost Rs 15.52 crore: CAG
Due to non-fulfilment of obligations with Central Coalfields, Bokaro Power Supply Company suffered a loss of Rs 15.52 crore, the report of Comptroller and Auditor General (CAG), tabled in the Parliament said.
The CAG said that Bokaro Power Supply Company could not adhere to milestones laid down in the Letter of Assurance (LoA) for being supplied coal, leading to forfeiture of bank guarantee of Rs 15.52 crore by Central Coalfields.
BPSCL is a 50:50 joint venture company of SAIL and Damodar Valley Corp.CCL had issued letters of assurance to BPSCL for supply of coal for the proposed 75 MW and 2x250 MW power plants, which were valid for 24 months. As per the terms of LoA, the company was required to complete all activities including approval of investment, decision, detailed project report, land lease agreement, environment clearance and forest clearance.