Para 3.18.20 — MSO (Audit)
Original Rule Text
3.18.20 Heavy Water is used as a moderator in the natural Uranium Fuel Reactors. The Nuclear Power Board pools together the entire production of Heavy Water in all the units for issue, on lease, to power stations and determines the pool price for the purpose. Audit scrutiny should cover the following aspects for possible comment:
(i) Comparative analysis of cost of production in individual units and of reasons for variations--in case costs have not been worked out, the reasons therefor should be ascertained.
(ii) Reasonableness of pool prices in relation to costs.
(iii) Analysis of stream factor (i.e. ratio of actual hours that the plant worked in a year to the guaranteed hours).
(iv) Arrangements made for upgradation of Heavy Water produced by individual units that is not of nuclear grade and their cost implications.
(v) Establishment of pilot plants for production of Heavy Water, outcome of research activities undertaken in such pilot plants and the progress made for transfer of relevant know-how in order to effectively utilise the results of such research.
What This Means
Heavy Water is essential for India's nuclear power reactors as a moderator. The Nuclear Power Board pools all Heavy Water production from different units and sets a pool price. Auditors must examine production costs across units, reasonableness of pool pricing, plant utilization (stream factor), upgradation arrangements, pilot plant research outcomes, and construction of new plants including any cost/time overruns.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Heavy Water is used as moderator in natural uranium fuel reactors
- 2Production is pooled from all units with a common pool price
- 3Compare production costs across individual units and investigate variations
- 4Assess reasonableness of pool prices relative to actual costs
- 5Analyze stream factor (actual working hours vs. guaranteed hours)
- 6Examine upgradation arrangements for non-nuclear-grade Heavy Water
- 7Review pilot plant operations and technology transfer progress
- 8Check for cost/time overruns in turn-key projects for new plants
- 9Proforma accounts must be maintained to assess operational results
Practical Example
An audit of Heavy Water plants reveals that Unit A produces Heavy Water at Rs. 8,000 per kg while Unit B produces at Rs. 15,000 per kg, nearly double the cost. The stream factor for Unit B is only 45% against a guaranteed 80%. The auditor investigates and finds that Unit B's plant was built through a turn-key contract that had a 3-year time overrun and 200% cost overrun. The poor plant design has led to frequent shutdowns. All findings are documented for the audit report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the stream factor?▼
Why is a pool price used instead of individual plant prices?▼
What does nuclear-grade Heavy Water mean?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.