ERC’s Approval of Chhattisgarh Power Deal Under Scrutiny: Vidyut JAC President Raghu
Hyderabad: The Electricity Regulatory Commission (ERC) has come under fire from Vidyut JAC President Raghu, who claims that the current power purchase agreement with Chhattisgarh, finalized during the previous BRS government, was never approved by the ERC. Raghu asserts that only the proposals made by the government were approved, not the agreement itself. This has allegedly led to significant financial losses for the state due to the absence of competitive bidding.
A judicial commission, led by Justice Narsimha Reddy, has been established to investigate allegations of irregularities in power purchase agreements with Chhattisgarh and the construction of the Yadadri and Bhadradri power plants. Former Chief Minister KCR, in a recent letter to the commission, argued that the ERC had approved the agreement, negating the need for a judicial inquiry. He also stated that the commission chairman lacked jurisdiction in this matter and should resign.
In response, the commission is reviewing KCR’s claims by scrutinizing power purchase agreements and related documents, and engaging with relevant stakeholders. Raghu and TJS Chief Professor Kodandaram presented their arguments before the commission, emphasizing the financial repercussions of the Chhattisgarh deal and the actions of the previous government.
Financial Losses Highlighted
Raghu, in his presentation, detailed the losses incurred due to the Chhattisgarh power contract. He claimed that the state suffered a loss of Rs. 2,600 crores due to the failure to secure competitive bidding and the underperformance of Chhattisgarh in supplying the agreed 1000 megawatts of electricity. As a result, alternative power purchases became necessary, leading to additional financial strain.
He also highlighted issues with the Bhadradri and Yadadri power plants. The Yadadri Power Plant, intended to be completed in three years, remains unfinished after nine years. The Bhadradri Thermal Power Plant, using sub-critical technology imposed by BHEL, was criticized for its outdated technology and environmental oversight. Raghu noted that the Bhadradri plant’s location near the Godavari River poses flooding risks, and the Yadadri plant’s distance from coal production areas increases transportation costs.
Debt and Mismanagement Claims
TJS Chief Kodandaram echoed these concerns, accusing the previous BRS government of making hasty and imprudent decisions that resulted in debts of Rs. 81,000 crores for Transco and Genco. He criticized KCR for ignoring central government recommendations and signing the Chhattisgarh power contract hastily. Kodandaram argued that the government’s actions were not for public welfare but for mutual benefit, leading to financial mismanagement and public suffering. He called for criminal action against those responsible for these decisions.
Commission’s Review Continues
The Justice Narsimha Reddy Commission continues to review the points raised by KCR and compare them with the facts. The commission is thoroughly examining the power purchase agreements and related documents and meeting with concerned individuals to ensure a comprehensive investigation.
