AIPEF demands action against Reliance for its failures

AIPEF demands action against Reliance for its failures

Saturday September 14 2013

New Delhi

All India Power Engineers Federation has demanded that allocation of ultra mega power projects (UMPP) at Tilaiya and Krishanpatnam to Reliance should be withdrawn as company has failed to develop these projects despite a lapse of 4 to 5 years.

The executive committee of AIPEF in its meeting held today has alleged that Reliance is not developing these two UMPPs and has demanded tariff increase even before starting work on these projects. The construction work has not been taken up at Krishapatnam on the ground that the quoted tariff must be first increased to compensate for likely price increase of imported coal. The work on Tilaiya has not been taken up by reliance on the excuse of land acquisition problem.

Padamjit Singh Chairman AIPEF further elaborated that even in case of Sasan Reliance tried to declare the commissioning of first 660 MW Unit on 30 March 2013 even though the unit could operate at only 101 MW simply to gain one tariff year of low cost supply. This was however disallowed by CERC. The latest trial run conducted in August this year is still under consideration by CERC.

Even in case of transmission system the actual progress made by Reliance on Talcher II and North Kanakura is nil in last three years and Power grid has petitioned to CERC that transmission license of reliance be cancelled and work handed over to it.

AIPEF has demanded registering of FIR against Reliance Power for its proven fraud in the construction of cooling tower at Raghunathpur thermal project of DVC .it may be mentioned that Reliance had used lesser quantity of steel in a fraudulent manner in the construction of cooling tower of 600 MW unit 1
was held up since Oct 2010 and this unit would be delayed by over 3 years with a daily revenue loss of Rs 1.5 crore per day to DVC.

In another resolution AIPEF regretted that State power generating units were being shut down to enable private sector projects to run at full capacity and earn maximum profits at the cost of State Discoms. In Gujarat it was found that 35% of State capacity was shut down whole private plants of 87 % capacity were running.

Similarly at Haryana while power from Adani project was being liberally purchased, daily up to 8 thermal units of state plants at Panipat, Yamunanagar and Hisar were being shut down on low demand. In case of Punjab situation is slightly better as PSPCL is only backing down its thermal units at Ropar and Lehra Mohabatt.
AIPEF noted that the recent proposal of ESSAR for distribution license in Gurgaon would lead to high tariff of over Rs 8 per unit while ESSAR will be charging over Rs 5 per unit of power from its own
stations. AIPEF called upon HERC to reject the application also because there was no competitive bidding and resulting in high tariffs claimed.
AIPEF regretted that Government was trying to impose privatization through back door by putting a pre condition for privatization in the Financial Restructuring Plan introduced recently. While State Discoms
were in financial distress the financial relief should be given without pre condition of privatization of distribution system.

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2 Responses

  1. raaj says:

    this govt of greedy Bribe babu has not learnt any thing from Ambani enterprises . While in yarn segment how the yarn prices went up … by controlling 80 % of the market . Ambani leit motiff: shatter the market by offering bribes which policy makers can not refuse and giving away even more what is asked .. a t this rate Ambani Bros may control the favourite figure of 80 % of generating capacity and then have tariff what they like as regulator are all friends of Govt and it friends

  2. R.N.Sen says:

    Action against the present chairman DVC Shri R.N.Sen is required to be ensured as he is responsible for indecision and inaction. He is directly helping Reliance for the fraud committed by them.

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