CHAPTER 6
DEPARTMENT OF SCIENCE AND TECHNOLOGY

6.1    Avoidable expenditure

Satyendra Nath Bose National Centre for Basic Sciences (SNBNCBS), Kolkata an autonomous body of Department of Science and Technology (DST) planned to construct its own building at Calcutta in two phases. Phase-I commenced in December 1990. SNBNCBS, without ensuring funds for construction of Phase-II entered into an agreement with the West Bengal State Electricity Board (WBSEB), Kolkata in July 1994 for supply of electricity for a period of five years ranging from 350 KVA to 1000 KVA for both phases of the proposed building.

As per the agreement, the Centre was required to pay minimum charges per annum for the contracted demand. SNBNCBS, even before approaching DST for sanction of funds for Phase-II obtained electric connection from WBSEB in June 1995. Phase-I of the construction was completed in July/August 1995 and SNBNCBS shifted to the new campus in January 1996. Phase-II of the construction was yet to commence as no proposal for expenditure sanction had been sent to DST. Despite the uncertainty of time schedule regarding Phase-II construction, the Centre did not approach WBSEB under the provisions of the agreement to reduce the contracted demand. During the period up to August 2000 the actual consumption ranged between 210 KVA and 282 KVA. The Centre paid Rs 42.98 lakh as charges for the shortfall of average minimum guaranteed revenue during this period in addition to regular charges for electricity consumed.

SNBNCBS approached WBSEB only in May 2000 to reduce the contracted demand only after expiry of agreement of July 1994 though pointed out as early as 1996 by Audit. Accordingly, WBSEB reduced the contracted demand through a fresh agreement on 31 August 2000. Thus SNBNCBS had incurred an avoidable expenditure of Rs 42.98 lakh for the power not consumed by it during the period July 1995 to August 2000 as the actual consumption of power was much below the contracted demand.

SNBNCBS stated in August 2000 that the Centre could not review the future power demand, as the construction work was uncertain due to legal case. The reply is not tenable, as the Centre had failed to take appropriate action to get the contracted demand reduced in view of the uncertainty of construction under Phase-II. DST has not sanctioned funds for Phase-II of the construction till October 2001.

Thus, failure to take appropriate action of getting contracted demand reduced and delay in obtaining sanction of DST for Phase-II of the construction resulted in an avoidable expenditure of Rs 42.98 lakh on the power not actually consumed.

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

6.2    Avoidable expenditure on water charges

India Meteorological Department (IMD), Pune draws water from Pune Municipal Corporation (PMC) for IMD campus and Meteorological Observatory at Agriculture College campus, Pune. The conditions of water supply stipulated that PMC would charge for the water consumed by IMD on the basis of quota fixed for each connection or on average consumption whichever was more for the period the water meters were faulty. Two water meters installed at IMD campus and Agriculture College campus were faulty. PMC raised bills for water supplied during the period April 1994 to February 1999 based on bi-monthly quota of 3900 and 240 kilo litres and IMD paid Rs 12.67 lakh in settlement of the claim, whereas, monthly average consumption was only 60 and 65 kilo litres. Resultantly, IMD incurred an avoidable expenditure of Rs 11.90 lakh on water charges during the above period. Even prior to April 1994, IMD paid water charges based on quota fixed, as the water meters were faulty. The Department had not provided audit with information required to work out the avoidable expenditure prior to April 1994.

IMD did not take any effective action to repair/replace the faulty meters till it was pointed out by Audit in May 1998/February 1999. IMD got these faulty meters made functional in February 1999/August 1999. PMC corrected the bills for water consumption during the period March 1999 to February 2000 on actual consumption. However, PMC refused to admit the claim of Rs 11.90 lakh from IMD on the ground that it had raised the bills for the water charges as per the conditions of water supply, hence IMD had not made any excess payment to it.

Thus, failure of IMD in taking timely action to rectify the faulty water meters led to avoidable expenditure of Rs 11.90 lakh on water charges.

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