CHAPTER 4
COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH

4.1    Infructuous expenditure on purchase of equipment

Structural Engineering Research Centre (SERC), Ghaziabad placed a purchase order on M/s Pressure, USA for import of Microprocessor Controlled Pressure cum Voltage Scanning (MCPVS) system in March 1989 at FOB (Free on Board) cost of Rs 25.09 lakh. The MCPVS system is a device used to measure dynamic pressures on various parts of a model placed in an Industrial Wind Tunnel (IWT). The equipment is specific to the IWT. Though the delivery was scheduled for August 1989, the incomplete system was received only in July 1990. The remaining parts of the system were received in March/ May 1991. SERC also paid freight charges of Rs 0.32 lakh in July 1990. Efforts were made to install the equipment in September 1991 without success. In July 1992, the Indian agent reported that the 200 MB Maxter hard disk could not be repaired and required replacement. Software for initialisation, calibration, and data acquisition was in the said hard disk. However, the hard disc was not replaced. SERC did not take further steps to obtain the replacement. Five years later, in August 1997, SERC Ghaziabad contacted SERC, Chennai and M/s HP - India for help in installation of the system with the model wind tunnel but without result. In March 1998, SERC also contacted an expert from National Aerospace Laboratories (NAL), Bangalore. However, no progress could be made in the matter. The MCPVS system procured at a cost of Rs 25.41 lakh remains un-installed ten years after its purchase.

The warranty clause given by the supplier was effective for a period of one year from the date of shipment instead of from the date of satisfactory installation. SERC could, therefore, not enforce replacement of the damaged hard disk. As the hard disk was central to the functioning of the equipment, the MCPVS system remained uninstalled (May 2001).

In reply, SERC accepted that the equipment was still lying un-installed. However, SERC stressed that there was no loss due to this non-installation as the MCPVS system was required for measurement on large models in the IWT which finally was not set up in SERC, Ghaziabad. Pressure measurements on the model wind tunnel could be handled efficiently by the strain gauge, an alternative pressure-measuring device. However, the reply of SERC does not detract from the fact that the MCPVS could not be installed even after ten years. Since the equipment was no more required as setting up of IWT had been shelved, the entire expenditure of Rs 25.41 lakh on procurement of the MCPVS had been rendered infructuous.

Audit reported the matter to the Department in July 2001; who have not replied as of December 2001.

4.2    Wasteful expenditure on import of equipment

Central Fuel Research Institute (CFRI), Dhanbad imported Automatic Gieseler Plastometer from M/s W. Feddeler GmbH & Co, Germany at a cost of Rs 18.57 lakh in October 1994. The equipment was required for determining initial softening point, maximum fluidity and solidification temperature which are the vital critical parameters of coal, essential for proper utilisation of coal for the purpose of production of steel and other grade cokes. Since installation and commissioning were not the responsibility of the supplier, CFRI attempted installation/commissioning of equipment in December 1994. However, the equipment could not be commissioned. This was taken up with the supplier in February 1995 and one defective part was replaced. CFRI in January 1998, commissioned the equipment with the help of National Chemical Laboratory (NCL), Pune on payment of Rs 0.95 lakh as consultancy charges. However, the equipment did not run and all attempts to utilise the equipment thereafter during January 1998 were not successful. The equipment has continued to remain in this defective condition and has remained unused from January 1998 to date.

Though it lacked the expertise to commission the equipment, CFRI did not make the supplier responsible for installation and commissioning the equipment. This resulted in equipment imported at Rs 18.57 lakh remaining defective and unused since its receipt in October 1994. Besides, Rs 0.95 lakh spent as consultancy charges to NCL was also unfruitful.

Audit reported the matter to the Department in August 2001, who have not replied as of December 2001.

4.3    Irregular subsidy

Central Electro Chemical Research Institute (CECRI), Karaikudi, a constituent unit of Council of Scientific and Industrial Research gets high tension electricity from Tamil Nadu Electricity Board (TNEB) for its office premises. Initially, when the rates for the high tension supply were lower than the domestic rates, CECRI extended the supply to the staff quarters also and occupants were charged at the same rates as applicable for the high tension supply.

Subsequently, the rates for high tension and low tension (domestic) power supplies were raised from time to time, during 1994-2001. The rate per unit for high tension power supply increased from Rs 2.10 in 1994-95 to Rs 2.45 in 1998-99 and to Rs 2.80 from January 2000. For domestic power supply the charges were levied in slab rates based on consumption from Re 0.60 to Rs 2.20 during the period 1994-95 to 1997-98, Re 0.65 to Rs 2.75 during 1998-99 and Re 0.75 to Rs 3.05 in January 2000.

However, during the above period, CECRI had been recovering electricity charges from the occupants of staff quarters at the rates applicable to low tension power supply but was paying TNEB at the rates applicable to high tension power supply. Thus, CECRI had been subsidising electricity supplied to its employees for their domestic use, by not obtaining low tension domestic supply line for the staff quarters. The irregular subsidy on this account during the period from April 1994 to March 2001 amounted to Rs 18.57 lakh.

CECRI stated in January 2001 that the matter regarding separate low tension connection for quarters was taken up with TNEB during 1995. Though CECRI furnished certain details in June 2001, information regarding requirement of power load for quarters, other facilities etc. called for by TNEB in July 2001 were yet to be furnished.

Thus, the failure to get a separate low tension connection for staff quarters and lack of follow up action since 1995 to get the same resulted in irregular subsidy of Rs 18.57 lakh to the employees.

Audit reported the matter to the Department in August 2001; who have not replied as of December 2001.

4.4    Avoidable expenditure

Central Fuel Research Institute (CFRI), Dhanbad entered into an agreement with Bihar State Electricity Board (BSEB) in January 1963 for supply of electrical energy in bulk through High Tension Line for use in its Laboratory and the staff quarters. BSEB is charging industrial rate for supply of electrical energy. However, CFRI was recovering charges at domestic rate for energy supplied to the occupants of the staff quarters which was lower than the industrial rate at which it was making payment to BSEB. Mention was made in Para 36 of the Report of the Comptroller and Auditor General of India for the year ended March 1990 (No.2 of 1991) regarding the loss of Rs 7.32 lakh which was sustained by CFRI for supplying electricity to the occupants of the staff quarters during the period April 1987 to March 1990. CSIR stated in November 1990 that BSEB had been requested to provide separate individual connections to the occupants of the staff quarters. BSEB expressed its inability in September 1991 in giving service connection to the individual staff quarters. But CFRI did not assess the amount of liability to be borne by it in the event of delinking by BSEB. It was, however, noticed that during 1991-2001 CFRI paid Rs 132.53 lakh to BSEB for electricity supply to the staff quarters and recovered only Rs 54.24 lakh.

CFRI stated in April 2001 that BSEB would not like to take on the liability of CFRI for giving service connection to the individual quarters. In order to avoid payment of extra expenditure towards consumption of electricity, CFRI should have assessed the economics of separating the connection and assured BSEB that it would make the necessary payment.

Thus, inadequate initiative on the part of CFRI resulted in incurrring avoidable expenditure of Rs 78.29 lakh during 1991-2001 towards consumption of electricity. Such avoidable expenditure would continue till such time separate service connections are provided to individual quarters.

Audit reported the matter to the Department in September 2001, who have not replied as of December 2001.

4.5    Unproductive expenditure

Council of Scientific and Industrial Research (CSIR), New Delhi submitted an inter-laboratory project titled “High Concentration Coal Slurry” costing Rs 379.33 lakh to the Department of Power for funding. Regional Research Laboratory (RRL), Bhubaneswar, RRL, Bhopal, Central Fuel Research Institute (CFRI), Dhanbad, National Metallurgical Laboratory (NML), Jamshedpur and Central Mechanical Engineering Research Institute (CMERI), Durgapur were to participate in the project. The Technical Advisory Board of CSIR advised the participating laboratories/institutes to initiate the work on the project from April 1991 without the consent/approval of the sponsor for funding the project.

NML, Jamshedpur and CMERI, Durgapur did not initiate the work for non-release of fund for the project. However, CFRI Dhanbad, RRL Bhopal and RRL Bhubaneswar started the work on the project from April 1993, May 1993 and July 1994 respectively. RRL, Bhopal conducted the work up to June 1993 and incurred an expenditure of Rs 0.20 lakh. Since no funds for the project were released by the Department of Power, CFRI closed the project in October 1994, whereas RRL Bhubaneswar continued till December 1997 and incurred an expenditure of Rs 21.86 lakh. CFRI expressed its inability to intimate the expenditure which it had incurred on the project up to the date of closure since separate accounts for the in-house projects had not been maintained.

Thus, initiation of the work on the inter-laboratory project before ensuring release of funds by the sponsor (i.e. the Department of Power) resulted in unproductive expenditure totalling Rs 22.06 lakh being incurred by the participating laboratories of CSIR.

Audit reported the matter to the Department in August 2001, who have not replied as of December 2001.