State govt's power purchase deal with UPCL illegal, expensive'

March 9, 2011

HGD

Udupi, Mar 9: Executive President of Jana Jagruthi Samithi, Nandikooru, Balakrishna Shetty accused the Yediyurappa Government of purchasing power from Udupi Power Corporation Limited (UPCL) without fixing the unit price and without an approved Power Purchase Agreement ratified by the Karnataka Electricity Regulatory Commission, as per the applicable laws.

In a press release, Shetty said that without the power purchase agreement between the power project and the government and without such agreement duly approved by CERC and ratified by the KERC the UPCL has no right to produce power and the plant should immediately shut down on this ground as well.

He said that information received by the Samithi from both the regulatory authorities - Central Electricity Regulatory Commission, New Delhi (CERC) and Karnataka Electricity Regulatory Commission, Bangalore (KERC) - reveal that neither the tariff has been approved by the CERC nor the KERC ratified the Power Purchase Agreement. The purchase of power obviously is made illegally at a high price by the government utility, the Power Corporation of Karnataka Limited and KPTCL.

The project is approved as the mega-power project and qualifies for various benefits like custom duty exemption and certain tax holidays etc. As the project is to supply power to more than one State the tariff is required to be decided by the CERC. It may be recalled that CERC had granted in-principle approval of the capital cost at Rs 4299.12 crores in October 2006 based on the equipment supply by BHEL. The UPCL terminated the agreement with BHEL and purchased far cheaper and perhaps reconditioned equipments without any guaranteed life span from Dong Fang of China.

The cost of the project based on other projects that used Chinese equipments should not be over 3720 crores for the increased capacity of 1200mw. The former Managing Director of KPTCL Bharat Lal Meena has stated that the company should reduce the project cost by at least 600 crores so that cheaper power is made available to the consumers. The Company on the contrary has been claiming increase of 600 crores in the project cost in the name of increase in the capacity.

In the background of the district in-charge Minister Dr VS Acharya's press statement that the State has released Rs 583 crores to the company, the basis of such release of funds becomes highly questionable. While the State is virtually being blackmailed in the name of power shortage large scale embezzlement of State funds on account of this project cannot be ruled out, he alleged.

Samithi demanded the authorities including the Governor and the Judiciary to take the matter suo-motto to get to the bottom of the issue and punish the culprits.


Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 13,2024

evehicle.jpg

In the heart of Mangaluru, where rising air pollution is spurring public health worries, voices are calling for a greener, cleaner shift in the city’s public transport. Leading this call is APD Foundation, a Mangaluru-based environmental NGO, which has urged Forest, Ecology, and Environment Minister Eshwar Khandre to mandate electric vehicle (EV) adoption in public transport.

Abdullah A Rehman, CEO of APD Foundation, emphasized in a formal letter to the minister that Mangaluru’s public transportation system—efficient and organized with both government and private players—could transition smoothly to EVs in stages. He suggested that government-backed financial incentives, partnerships with EV manufacturers, and collaborations with environmental groups could streamline the switch.

Rehman stressed the potential of EVs to cut down emissions, enhance air quality, and reduce noise levels, noting the quieter operation of electric buses. He confirmed that a copy of his letter was submitted to the Deputy Commissioner as well.

However, Dilraj Alva from the Dakshina Kannada City Bus Association noted potential challenges, explaining that the shift might take up to two years due to infrastructure and budget hurdles. Most EV buses, he explained, are procured through aggregators, not directly by individual operators. The addition of charging stations and other essential infrastructure further complicates the transition.

Alva also raised the economic concern: while diesel buses are priced between ₹30-40 lakh, electric buses can cost up to ₹1 crore. Reflecting on recent meetings with companies, including one in Manipal, he questioned the assumption that EVs are an absolute solution to pollution. “EVs aren’t entirely eco-friendly, especially when considering battery disposal,” he cautioned.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 14,2024

Bengaluru: Karnataka Deputy Chief Minister D K Shivakumar on Thursday backed Chief Minister Siddaramaiah over his claim that the BJP had offered Rs 50 crore each to 50 Congress MLAs in an attempt to "topple" the state government.

Addressing reporters here, Shivakumar, also the Congress state president, said, “The BJP indeed lured 50 Congress MLAs with Rs 50 crore each.”

He defended Siddaramaiah’s statement and said the Congress MLAs were briefed about the BJP’s alleged 'Operation Lotus', a term used to describe the BJP's attempts to destabilise ruling governments through horse-trading.

“Some of our MLAs informed the Chief Minister about this matter, and he, in turn, shared it with the media,” Shivakumar said.

At an event in Mysuru, Siddaramaiah reiterated the claim that "none of the Congress MLAs had accepted the offer".

He also accused the BJP of filing false cases against him in a bid to "remove him and overthrow his government".

The BJP has yet to respond to the allegations.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 16,2024

Mangaluru: The Kavoor police in Mangaluru, Karnataka, have arrested three individuals from Kerala in connection with two separate cybercrime cases, including one involving extortion under the guise of a "digital arrest."

City Commissioner of Police Anupam Agrawal reported that one of the arrested individuals, Nisar, a resident of Ernakulam district, posed as a CBI officer. He allegedly threatened the complainant with arrest and extorted Rs 68 lakh. A case has been filed under sections 66 (C) and 66 (D) of the IT Act, and sections 308 (2) and 381 (4) of BNS.

In another case, the Kavoor police arrested two men, Sahil K P of Thiruvannur, Kozhikode, and Muhammad Nashath of Mappila Koyilandy, Kerala, in connection with a share trade fraud. The accused are alleged to have deceived the complainant by promising substantial profits from an investment in the stock market. Trusting the fraudsters, the complainant invested Rs 90 lakh, which was subsequently lost. A case has been registered under sections 66 (C) and 66 (D) of the IT Act, and sections 318 (4) and 3 (5) of BNS.

The accused were arrested in Koyilandi and presented before the court. The operation was carried out under the guidance of City Police Commissioner Anupam Agrawal, led by Mangaluru North Sub-Division ACP Srikanth K, Kavoor Inspector Raghavendra Byndoor, Kavoor PSI Mallikarjuna Biradara, and staff members Ramanna Shetty, Bhuvaneshwari, Rajappa Kashibai, Praveen N, and Malatesh. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.