Power purchase deals under Madras HC scanner

CHENNAI: The spectre of an allegation that the state suffered a loss of 1 lakh crore due to delayed power projects and purchase of power from private players at exorbitant rates returned to haunt the government with the Madras high court seeking details of a damning Comptroller and Auditor General (CAG) report on the matter.

What was the nature of comments of the CAG? To what extent the explanation was not accepted? What is the view taken by the committee on public undertaking? Firing a volley of such questions at the government, the first bench comprising Chief Justice Sanjay Kishan Kaul and Justice T S Sivagnanam on Tuesday said all relevant materials should be produced before the court for perusal by August 10.

The matter relates to a PIL filed by C Selvaraj, who said a group of officers during their long stint at the helm, prevented new projects from taking off and delayed completion of those already under construction to maintain artificial power shortage in Tamil Nadu. After delaying projects and stalling generation in existing units for several months, the officers signed power purchase agreements with private companies at exorbitant prices, he said.


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