Para 3.18.21 — MSO (Audit)
Original Rule Text
3.18.21 Since 1987, the responsibility for the operation and maintenance of nuclear power reactors and construction of new reactors has been entrusted to the Nuclear Power
Corporation Limited, a public sector undertaking under the administrative control of the Department of Atomic Energy. The accounts of the Company are audited by statutory auditors appointed by the Government under the Companies Act, 1956, in consultation with the Comptroller and Auditor General. Therefore, in auditing the activities of the Company, greater emphasis should be placed on the performance and propriety aspects than merely on individual transactions.
- Reprocessing of spent fuel and radioactive waste management
3.18.21 Reprocessing of the spent fuel and radioactive waste management are the last but vital stages of the nuclear fuel cycle. The former activity provides the important link to the Fast Breeder Power Reactor Programme by making available plutonium. It needs no emphasis that management of radioactive waste is an important and crucial activity for protection of the environment.
What This Means
Since 1987, the Nuclear Power Corporation of India Limited (NPCIL) handles operation, maintenance, and construction of nuclear power reactors. As a government company, its accounts are audited by statutory auditors appointed in consultation with the CAG. Therefore, CAG's audit should emphasize performance and propriety aspects rather than individual transaction checks. This paragraph also notes that spent fuel reprocessing and radioactive waste management are vital stages of the nuclear fuel cycle.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1NPCIL operates and maintains nuclear reactors and builds new ones since 1987
- 2NPCIL is a PSU under Department of Atomic Energy
- 3Statutory auditors are appointed under Companies Act in consultation with CAG
- 4CAG audit should focus on performance and propriety, not individual transactions
- 5Spent fuel reprocessing provides plutonium for Fast Breeder Programme
- 6Radioactive waste management is critical for environmental protection
Practical Example
A CAG audit team visiting NPCIL does not spend time verifying individual purchase orders or salary payments — the statutory auditors handle those. Instead, they focus on performance aspects: reactor capacity factors, power generation targets vs. actuals, safety record, construction delays in new reactor projects, and cost overruns. They also examine the propriety of major decisions like contractor selection for a new reactor site.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does CAG focus on performance rather than transactions for NPCIL?▼
What is the significance of spent fuel reprocessing?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.