The Comptroller and Auditor General (CAG) of India has flagged a misclassification in electricity tariffs, leading to an undue benefit of ₹2.69 crore to Sikkim Manipal University (SMU) over five years (2017-18 to 2021-22). The audit report revealed that SMU was incorrectly classified under the Bulk Supply High Tension Industrial Supply (HTIS) category, instead of the standard HTIS category, which applies to most industrial and institutional consumers. This misclassification resulted in revenue losses for the Power Department of Sikkim (PDS).
According to the CAG report:
SMU was charged ₹12.33 crore in energy costs under the incorrect category.
If classified correctly under HTIS, it should have been charged ₹15.02 crore.
The discrepancy led to a ₹2.69 crore loss for the state power department.
CAG Rejects Power Department’s Justification
The Power Department defended its classification, arguing that SMU was established through a State Legislative Act and that its teaching hospital provides essential services. However, the CAG dismissed this justification, stating that other institutions, such as Sikkim Manipal Institute of Technology (SMIT) and SRM University, were correctly placed under the standard HTIS category.
The audit further emphasized that the presence of a teaching hospital does not qualify SMU for the Bulk Supply category, which is reserved for government-run institutions such as military establishments and public hospitals. In addition to the SMU misclassification, the audit also flagged another instance of revenue loss in the Ravangla circle (2020-21), where lower-than-notified rates were charged, leading to a ₹25.37 lakh shortfall in electricity revenue. The CAG has recommended a thorough review of consumer classifications and stricter enforcement of the Sikkim State Electricity Regulatory Commission Tariff Schedule (SSERCTS) to prevent future revenue leakages. The report underscores the need for better governance and oversight in the Power Department to ensure fair tariff application and revenue collection.