CHANDIGARH, September 4, 2026: A Comptroller and Auditor General of India audit of Punjab’s state public-sector enterprises exposed implementation and financial-control failures in the Integrated Power Development Scheme at Punjab State Power Corporation Limited, including irregular or inadmissible grant claims and central funding that could not be secured because prescribed milestones were not achieved.
What the CAG found
The audit found instances of irregular or inadmissible claims worth ₹6.86 crore under the information-technology enablement and ERP components. It also found that ₹4.74 crore in grant could not be claimed because sanctioned works under the Real-Time Data Acquisition System component were not executed.
The largest quantified loss of funding came from a further 15 per cent grant of ₹61.08 crore. According to the CAG, Punjab State Power Corporation could not receive that amount because scheme milestones were not achieved.
The problem was not only money
The audit examined 97 towns covered by the scheme and found that in 2021-22 the company achieved the prescribed target for aggregate technical and commercial losses in only four towns. In the remaining 93 towns, losses ranged from 14.08 per cent to 82.53 per cent.
The CAG also reported that 6,496 of 11,193 sanctioned metering cubicles had been installed by February 2022, leaving a substantial gap in metering infrastructure.
Why electricity consumers should care
The audit does not establish that individual consumers were overcharged because of these findings, but it shows that a programme designed to strengthen urban electricity distribution did not meet several implementation milestones. Consumer subsidy receivable from the Punjab government ranged between ₹3,011.57 crore and ₹7,117.90 crore during April 2017 to March 2022, according to the audit.
Accountability questions
- Which projects caused the ₹4.74 crore grant shortfall?
- Why were ₹6.86 crore of claims considered irregular or inadmissible?
- What management controls were changed after the findings?
- What is the current status of the ₹61.08 crore grant opportunity?
What should happen next
Authorities should publish town-level completion and loss data, disclose the projects connected to the unclaimed grant, explain the irregular claims and report the current subsidy receivable position.
Evidence trail: Comptroller and Auditor General of India audit report | CAG full report PDF
This report relies on CAG audit findings. Audit observations identify deficiencies and financial implications; they are not, by themselves, findings of criminal guilt.
