Jogi smells a rat in power project deal

Raipur, Feb 26 (UNI) Former Chhattisgarh chief minister Ajit Jogi today alleged that some vested interests were at work to ensure that a turnkey project of coal-based thermal power extension Stage-3 at Korba was allotted to a Chinese company with ''doubtful credentials'' thereby placing an avoidable burden of about Rs 750 crore on the state.

Addressing a press conference here, he said that the manner in which the Chhattisgarh State Electricity Board (CSEB) handled the matter reeked of corruption.

Pointing out that he had written to Union Power Minister Sushil Kumar Shinde seeking his intervention, Mr Jogi added that the National Thermal Power Corporation (NTPC) was directly involved in finalising this deal. He requested the Minister to direct NTPC and the state government to reconsider the deal and finalise the contract in a ''transparent and honest'' manner.

Mr Jogi said that four bidders -- China national Machinery and Equipment import and export Corporation (CMEC), Bharat Heavy Electricals Limited (BHEL), Harbin Power Engineering, China and SEPCO Construction Company, China -- participated in the bidding process. After technical discussion and clarification, price bids only for BHEL and CMEC were opened and others were neither opened nor the parties informed of the reasons for not considering their bids.

Throwing light on the process, Mr Jogi said that the CSEB adopted such methods so that CMEC got a chance to increase the price which, he said, was a direct loss to the Board and the state. He alleged that the techno-commercial and price bids were submitted in February 2006 but opened in December after a lapse of more than ten months.

Pointing out that the CSEB did not consider the exchange rate prevailing on December 21, 2006, Mr Jogi quoted World Bank guidelines to point out that if the bid was delayed for more than six months, the exchange rate applicable on the date of the price bid opening was considered for evaluation purpose.

The former chief minister said that CMEC did not possess a good track record in India. It was earlier awarded a contract for a 2 x 210 MW Rayalaseema Thermal Power Project by the Andhra Pradesh Power Generation Company Ltd (APGENCO). The contract was signed in 2001 but the company could not begin work for more than three years and finally the contract was cancelled, which led to considerable loss to APGENCO.

A private group also placed an order on CMEC for the 6 x 600 MW Jharsuguda Project but CMEC ''could not honour'' the commitment while finalising the contract and the order was cancelled.

Mr Jogi said that private entrepreneurs were coming to Chhattisgarh for setting up power projects by proposing to generate cheaper electricity whereas CSEB was unable to do so. '' The reason is quite obvious,'' he added.

Demanding scrapping of the tender, Mr Jogi said that fresh ones must be invited.

UNI