Thu Dec 18 12:54:23 UTC 2025: News Article Summary:

Karnataka Faces Scrutiny Over Power Development Scheme: CAG Report Highlights Inefficiencies and Delays

Belagavi, December 18, 2025 – A new report by the Comptroller and Auditor-General of India (CAG) has cast a critical eye on the implementation of the Integrated Power Development Scheme (IPDS) in Karnataka. The audit, focused on the state’s Electricity Supply Companies (Escoms), revealed significant inefficiencies, delays, and financial irregularities.

The CAG found that Escoms exceeded the sanctioned IPDS budget by ₹110.89 crore, with a portion of the overspending attributed to failing to procure materials at Central Procurement Prices. The report also criticized Escoms for failing to secure additional grants due to non-compliance with grant requirements, leading to a potential loss of 15% of the project cost.

The audit further highlighted substantial delays in awarding contracts, ranging from 11 to 27 months beyond the approved timelines. Contracts were also awarded in violation of the Karnataka Transparency in Public Procurements (KTPP) Act and Rules, by providing inadequate time for tender submissions and accepting bids with excessive premiums.

While the CAG acknowledged improvements in billing efficiency within Hescoms, it urged the Karnataka government to ensure Escoms adhere to timelines, conduct thorough feasibility surveys, and implement a mechanism to issue tenders promptly. The report also underscored the need for timely release of subsidies for irrigation pumpsets based on metered consumption.

The findings raise concerns about the effectiveness of the IPDS in Karnataka and call for immediate corrective measures to ensure transparency, accountability, and efficient use of public funds. The CAG report serves as a reminder of the importance of rigorous oversight in infrastructure projects to avoid delays and cost overruns, ultimately benefiting the public.

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