Report No.38 of 2017 - Performance Audit on Kudankulam Nuclear Power Project, Units I and II Department of Atomic Energy

Date on which Report Tabled:
Wed 27 Dec, 2017
Date of sending the report to Government
Government Type
Union Department
Sector Power & Energy


This Report contains results of performance audit of the Kudankulam Nuclear Power Project, Units I and II. This Report highlights a number of deficiencies in the execution and commissioning of Units I and II of KKNPP such as avoidable payment of interest on borrowings, non-transparency in availing loans, lapses in tariff fixation process, extending undue benefits to overseas collaborating partner, non-assessment of required manpower with consequent avoidable expenditure, inadequate monitoring and start of commercial operation before getting the required licence to operate from the competent authority. These, resultantly, ended up in significant escalation in cost of the project and substantial delays in commissioning of the Units.

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