Nalco defaults Rs 15 cr to Orissa towards power bill: CAG
Bhubaneswar: Navratna National Aluminium Company Limited (Nalco) had defaulted Rs 15.48 crore towards electricity duty to the Orissa government in 2008-09, according to the Comptroller and Auditor General (CAG).
Though Nalco had a captive power plant, the company utilised 639.5642 million units of electricity for auxiliary consumption during April 2008 to March 2009. The company was supposed to pay Rs 12.79 crore towards the electricity it used, said the CAG report tabled in the assembly recently.
However, the Navratna company did not pay the amount.
The authorities in the energy department also did not raise demand for non-payment of the dues, the CAG observed.
"This resulted in non-levy of Rs 15.48 crore including interest liability of Rs 2.68 crore for default in payment to the government amount," the report said.
According to subsequent notifications in 2006 under the Orissa Electricity Duty Act, 1961, an amount of 20 paise per unit was leviable on auxiliary consumption of energy and should be paid to the government account within the prescribed period.
In case of default, interest at the rate of 18 per cent per annum was also leviable, it said.
The payable money was not realised till December 2010 despite a High Court order for doing so in May last year, the report said.