Close on the heels of Satyam scandal, the government owned National Thermal Power Corporation-, which is by far the largest electricity generator in India-, has been charged with over stating the revenue receipts by 938.3 Crores by the Comptroller and Auditor General of India (CAG). The audit watchdog made the observations while scrutinizing the turnover of Rs.40017 crores in 2007-2008.
CAG said the amount of Rs.938.3 crores was a disputed one generated between 2004 and 2008 and yet to be realized. As per CAG, as the amount has been disputed by Central Electricity Regulatory Commission (CERC), the amount should not have been entered as revenue as per accounting standard prescribed under section 211(C) of the Indian Companies Act 1956.
The regulator CERC had disallowed the NTPC to charge Rs.938.3 Crores from the customers stating that it is taking more than it was allowed under tariff regulations.
It is to be mentioned here that the NTPC had appealed before the Appellate Tribunal against the order of CERC and got the ruling in favor. However CERC challenged the verdict in Supreme Court, which is yet to deliver the judgment.
According to the balance sheet of NTPC, the net profit of the power utility was Rs.7414.8 crores during 2007-08 and if the amount of Rs.938.3 crores is not considered as revenue, then the profit comes down to Rs.6476.5 Crores.
Established in 1975, the Public sector power utility has 22 plants owned by it and another four are with joint ventures. NTPC has a total installed capacity of 29894 Megawatt including plants in joint ventures. NTPC employs about 23,500 people to run the show and every fourth Indian home is lit by power generated by NTPC.