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Solar parks: CAG audit reveals no feasibility studies, excess land acquisition led to inflated costs

August 19, 2025
in Economic
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Solar parks: CAG audit reveals no feasibility studies, excess land acquisition led to inflated costs
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The Comptroller and Auditor General (CAG) of India recently came out with a performance audit report that highlighted the delays in the commissioning of a solar power project. The report pointed out that these delays were preventable and could have been avoided with proper planning and execution. This audit serves as a reminder that in the rapidly growing field of renewable energy, it is crucial to streamline processes and address any issues that may arise in a timely manner.

The solar power project in question was undertaken by a government agency with the aim of increasing the country’s renewable energy capacity. However, the project was plagued by delays and did not meet the set deadlines for commissioning. The CAG’s audit revealed that the delays were caused due to various factors such as delays in land acquisition, obtaining necessary clearances, and timely procurement of equipment.

The report also highlighted the impact of these delays on the project’s budget and the environment. The delays led to cost overruns, resulting in a loss of public funds. Moreover, the delay in the commissioning of the project also meant a delay in the production of clean energy, adding to the already alarming levels of pollution.

The CAG’s performance audit has rightly pointed out that these issues were preventable. The delays could have been avoided if the government agency had taken proactive measures. For instance, conducting a thorough feasibility study and identifying potential roadblocks could have helped in anticipating and addressing issues beforehand. Additionally, better coordination among different departments involved in the project could have reduced the delays caused by bureaucratic processes.

The audit also shed light on the lack of monitoring and follow-up by the government agency responsible for the project. This is a critical aspect as timely monitoring and follow-up can help identify any issues and take remedial measures. It is imperative for the agencies to have a robust monitoring mechanism in place to ensure the smooth implementation of projects and prevent delays.

Moreover, the CAG’s audit report serves as a lesson for other government agencies and private players involved in renewable energy projects. It highlights the importance of adhering to timelines and addressing any issues promptly to ensure the timely commissioning of such crucial projects. With renewable energy being a key component of the country’s energy mix, it is crucial to have a streamlined and efficient process to reach our renewable energy targets and reduce our dependence on traditional sources of energy.

The delay in commissioning of the solar power project not only had financial and environmental implications, but it also had an adverse impact on the country’s reputation. In recent years, India has made significant strides in renewable energy and has been at the forefront of the global fight against climate change. Delays in commissioning projects reflect poorly on the country’s commitment to clean energy and can discourage future investments in the sector.

The CAG’s performance audit also highlights the need for a robust grievance redressal mechanism. The audit found that the delays were caused due to litigation filed by affected parties, which could have been addressed through timely mediation and resolution. A proactive approach in handling grievances can prevent delays and ensure the smooth implementation of projects.

In conclusion, the CAG’s performance audit has raised some critical issues in the commissioning of the solar power project. It has rightly pointed out that these issues were preventable and could have been avoided with proper planning and timely action. The audit serves as a reminder that to achieve our renewable energy targets, it is crucial to streamline processes, have a robust monitoring mechanism in place, and address any issues promptly. The government and all stakeholders involved must take this audit report as a learning experience and work towards ensuring the timely commissioning of future renewable energy projects.

Tags: Prime Plus
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