ANNUAL STATEMENT OF ACCOUNTS 1998/99

Expenditure

The Commission was allocated a budget of Rs.250 lakhs for the year 1998/99. Expenditure during the year was below the allocation principally in the case of salaries, because of non availability of staff and in office expenses due to the lead time for making available the basic minimum office facilities. The allocation for rents remained under utilised since the Commission could not find suitable accommodation. The expenditure on other charges mainly represents payments made directly by the Ministry of Power to the Ministry of Urban Affairs for the proposed building of the Commission.

Major Head : "2801" Power

Minor Head 80.800 (other expenditure)
                                                                                                           Rs lakhs

  Budget Head BE Expenditure
01.01.01 Salaries 43 3.43
01.01.11 Domestic Travel Expenses 5 0.53
01.01.12 Foreign Travel Expenses 7 0.75
01.01.13 Office Expenses 75 9.36
01.01.14 Rent, Rates and Taxes 76 0
01.01.29 Professional Services 10 0.22
01.01.50 Other Charges 34 2.03
Total   250 16.32

Note: During the year the entire accounting work of the Commission was done by the Drawing and Disbursing Officer of the Ministry of Power. The estimates given above are unaudited unofficial estimates based on the internal records of the Commission, pending the finalisation of accounts by the DDO, MOP.

Income

The Act makes no provision for the Commission to finance itself. Under the existing scheme, formulated by the Central Government, the Commission is to be financed through budgetary allocations. For this purpose, appropriate regulations are being framed. Revenues on this account will vary depending on the nature and extent of regulation adopted by the Commission. Revenues accruing from fees and charges will be deposited in the Consolidated Fund of India. The efficiencies brought about by effective regulation will be more than adequate to neutralise the relatively small expenditure on the Commission. The Commission functions in the public interest and regulated entities, accessing its services, must share in the cost of regulation. Hence the Commission feels it is appropriate that a fee or charge is levied for the various services provided by it to regulated entities.

Administration of Corpus Fund

In recognition of the need for independent financing arrangements outside the budgetary allocations, the Central Government had made available to the Commission, an amount of Rs.200 lakhs as a Corpus Fund to be used for setting up the Commission and to defray the expenses associated with the start up of a new institution. This amount has been deposited as a one year time deposit with the State Bank of India, Lodhi Road, maturing on September 5, 1999, and earns interest at the rate of 10.75% per annum. Use of the funds in this account is overseen by the full Commission. Expenditure is sanctioned by the Chairperson of the Commission, on the concurrence of the Internal Financial Adviser of the Commission.

The Commission has been very selective in the utilisation of the accruing from these funds. The interest income has been used primarily to finance the salaries of a few staff, including an economist, who were taken on contract to meet the severe shortage of manpower faced by the Commission. Regular appointment against these posts is pending the approval of the Service Regulations by Central Government for contract employees or the joining of deputationists which ever is earlier. The interest income has also been used to finance essential office expenses like maintenance services and security etc. The approval for such unavoidable expenses was getting delayed on account of the complicated approval process for meeting expenditure from the budget, in the absence of an independent DDO and PAO for the Commission.

During the year 1998/99 an amount of Rs.16.32 lakhs was spent from the Corpus Fund. Efforts are being made to seek a one time re-coupment from the budgetary allocation for items of expenditure which can be covered under the budgetary allocations It may be noted that there are significant savings of Rs.75 lakhs in the office expenses sub-head under thc budgetary allocations for 1998/99, against which the proposed recoupment can be setoff. However, the use of the Corpus Fund for meeting such expenses is only a temporary measure. It is expected that with the establishment of an independent DDO and PAO for the Commission and the joining of regular staff, the routine expenditure would be met from the budget. The use of the corpus fund would be restricted to areas, which relate to the long term development of independent regulation. Regulations to prescribe the criteria for the use, monitoring and management of the Corpus Funds are being framed.

 

 


 

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