₹404 crore unutilised in SAUBHAGYA scheme, CAG finds

The Comptroller and Auditor General (CAG) audited the implementation of two central government schemes, Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), to assess their performance, quality assurance, and financial management in providing rural electricity.

Ministry of Power, Rural Electrification Corporation (REC), and State Distribution Companies (DISCOMs); affects rural households and agricultural consumers in India.

• CAG found that 82% of DDUGJY projects were delayed in award and 92% in completion, with 47% delayed by more than two years.
• CAG noted that the Ministry of Power did not conduct feasibility studies and Detailed Project Reports (DPRs) were prepared without field surveys, violating guidelines.
• CAG identified that 1.09 lakh out of 6.13 lakh defects flagged by REC under DDUGJY were not resolved on time.
• CAG observed that SAUBHAGYA declared 100% target achievement by March 2019, but seven states still reported 19 lakh unelectrified households at that time.
• CAG found that REC appointed Quality Monitors in May and October 2019, after the scheme's completion deadline of March 2019, defeating the purpose of monitoring.
• CAG recommended that the Ministry of Power conduct feasibility studies and field surveys before sanctioning work and preparing DPRs.
• CAG recommended stricter quality checks and monitoring mechanisms at both DISCOM and REC levels.
• CAG recommended that REC raise extra budgetary borrowing (EBR) funds only as per assessed requirements, noting that Rs 404 crore remained unutilised.

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