PSPCL seeks cabinet approval for controversial coal case

PSPCL seeks cabinet approval for controversial coal case
Monday November 11 2013
Chandigarh
The Punjab Power State Power Corporation Limited (PSPCL) has sought the approval of Punjab Cabinet on the controversial purchase case granting financial benefits to the coal supplying company PANEM, the joint venture company of PSPCL and EMTA.
The benefits to the tune of Rs. 113.6 crore per annum comprise of additional compensation for transportation of Rs. 100 per ton amounting to Rs.84 crore every year and about Rs. 29.6 crore every year for coal sizing as per standard practice at the rate of Rs. 35 per tonne. PSPCL however claims that these are adhoc arrangement subject to outcome of arbitration proceedings. PSPCL has nominate former Chief Secretary Punjab to represent its case.
According to the sources, the PSPCL has managed to send the case to the Punjab Cabinet for approval through the Secretary, Power, as he was one of the signatory to the proposal giving annual financial benefit to PANEM to tune of Rs 113.6 crore. The outcome of the cabinet meeting is not yet known.
Meanwhile, PANEM which has challenged the testing results of coal supplied at the Ropar thermal plant has withdrawn its request after the manipulation in testing results was also highlighted in the media last month.
According to the sources, PANEM had challenged the test result of 85 rakes supplied at the Ropar thermal plant for January to mid March this year has now withdrawn the request after a high-level meeting between the PSPCL and PANEM last month.
According to the reports, it was clearly established that all the referee samples were tempered by PANEM in connivance with the RTP officials. After the matter regarding variance in test results was noticed by the PSPCL, the Chief Engineer thermal design was asked to enquire about the matter and the report is still awaited.
According to sources it was suspected that low-level officials in connivance with PANEM staff used to tamper the samples as they had got duplicate keys. Senior officials replaced the locks of rooms where referee samples are being placed.
A senior RTP official said that after top-level changes the coal testing has been further streamlined and the result in last three months points to this.

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