Energy sector experts smell something fishy in the State Government’s decision to allow Hindujas to construct 1,000 mw power plant in Visakhapatnam district.
They are perplexed as to on what terms did the Government allow the Hinduja’s to go ahead with the plant and wanted the Government to make the details of the deal public.
The experts would like to know from the Government as to whether the Hindujas are going to sell the power to the Discoms or to third parties. They claim that if the Hindujas are going to sell power to third parties, the Government’s decision will be against several statutes and the Electricity Act of 2003. Experts warn that if the Government allows the Hindujas to sell power to the third party, the Discoms will forego about Rs 3,000 crores revenue. Speaking to ‘Express’, Communist Party of India deputy general secretary Suravaram Sudhakara Reddy wanted to reason for the Government not going in for an open bidding. “On whose pressure is the Government is reconsidering the issue while the company itself has opted out of the MoU?” Sudhakara Reddy questioned.
The People’s Monitoring Group on Electricity Regulation convener M Thimmareddy demanded that the Government reconsiders the entire exercise.
The Hinduaj’a power plant issue which was swept under the carpet five-years-ago is suddenly seeing the light of day with the State Cabinet giving approval to the company and allegedly the company has been asked to complete the financial closure by October this year. Hinduja company has proposed to set up 1,000 mw power plant in the State in 1991 when the power sector was opened to private parties as part of economic reforms. The Hindujas entered in to Memorandum of Understanding with the then AP State Electricity Board on fixed cost payment system.
However it failed to complete the financial closure even after it was given several extensions. Suddenly the company has started pushing its project. It
was given about 1,000 acres of land in Visakhapatnam district near the coast and it paid about Rs two lakh per acre. Now the company is asking for more land from the Government and the latter is ready to consider the plea. However the energy experts warn the Government against giving into search demans. Former secretary
to Union Power ministry E A S Sarma stated that the plant should not be set up in the coastal regulatory zone as it is against the Environmental Acts.
–Agencies–