Monday, February 4, 2013

POWER SCAM: 8 years after deal, 7 firms yet to produce power

Mumbai: Nearly eight years after the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) signed memoranda of understanding (MoUs) with seven leading firms for the supply of 11,500 MW of power, the companies are yet to begin electricity generation.

In response to a query filed by leader of the opposition Eknath Khadse under the Right to Information Act, the MSEDCL confirmed signing the MoUs on April 4, 2005 but said that it hadn’t inked power purchase agreements with the firms as none had begun actual power generation.

“Chief minister Prithviraj Chavan must bring out a comprehensive white paper on the mess in MSEDCL and all the subsidiaries of the Maharashtra state electricity board. I am told that the losses incurred by the state-run power firms have crossed the Rs 10,000 croremark,” Khadse told TOI on Monday. “This calls for a high-level probe. It’s the responsibility of Chavan and the energy minister to explain why these companies have failed to produce power,” added the BJP leader.

The MSEDCL has informed Khadse that it had signed MoUs with Central India Power Company Ltd for supply of 2,000 MW, Essar and Tata Power for 1,500 MW each, GMR Energy and Ispat Energy for 1,000 MW each, Reliance Energy for 4,000 MW and Spectrum Technology for 500 MW.

Further, Khadse was told that the MSEDCL will buy electricity from Adani, Lanko Vidarbha, JSW, Emco Energy and Indiabulls. The MSEDCL had invited tenders for the supply of power and subsequently signed an agreement with these firms for the purchase of 2,725 MW of power.

Khadse said the government had mislead the people of Maharashtra by saying the state would have surplus power by 2012. “The claim is nothing but an eyewash. Our information is that barring a few cities, there is massive load shedding across the state. In my opinion, Maharashtra is facing shortage of power because of lack of direction and large-scale irregularities,” Khadse said.
Courtesy:
Prafulla Marpakwar TNN
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