tgnns logo

Justice Narasimha Reddy Commission Issues Notice to Former CM KCR Over Power Plant Decisions

Justice Narasimha Reddy Commission Issues Notice to Former CM KCR Over Power Plant Decisions

The Justice L. Narasimha Reddy Commission has issued a notice to former Chief Minister K. Chandrashekar Rao (KCR) regarding decisions made about the construction of Yadadri and Bhadradri thermal power plants and the electricity purchase agreement with Chhattisgarh. This notice requires KCR to provide written responses by the 15th of this month.

Details of the Notice and Required Responses

Justice Narasimha Reddy, the Commission’s Chairman, disclosed these details during a media briefing. He mentioned that KCR has requested an extension until the end of July to respond. The Commission, which convened on Tuesday, highlighted the preliminary findings from its ongoing inquiry. These findings include additional financial burdens on the state government due to non-tender-based projects and direct electricity purchase agreements.

Investigation and Key Figures Involved

The Commission has reached out to KCR and 25 other officials and public representatives for comprehensive information. Among those interrogated are former energy department principal secretaries Suresh Chanda, Arvind Kumar, S. K. Joshi.

A notice has been issued by the Justice L. Narasimha Reddy Commission to former Chief Minister KCR regarding decisions made in the construction of the Yadadri and Bhadradri thermal power plants and the power purchase agreement with Chhattisgarh. The commission has instructed him to provide written responses by the 15th of this month. Justice L. Narasimha Reddy himself disclosed this information during a media briefing on Tuesday.

KCR has requested until the end of July to submit his responses. Justice Narasimha Reddy detailed the preliminary findings of the investigation, highlighting that the projects were undertaken without a tender process and through a nomination method, which led to additional financial burdens on the state government. Letters have been sent to KCR and 25 other officials and public representatives for comprehensive information. Former Chief Secretaries of the Energy Department, Suresh Chanda, Arvind Kumar, S. K. Joshi, and Ajay Mishra, along with former Transco-GenCo CMD Devulapalli Prabhakara Rao, have been questioned for details. Experts like Professor Kodandaram, electricity employee Raghu, and field specialist Venugopal have also contributed information.

Justice Narasimha Reddy Commission Issues Notice to Former CM KCR Over Power Plant Decisions

Former Chief Secretary S. K. Joshi explained to the commission that initially, a government order (GO) was issued to purchase 2000 megawatts of electricity from southern state electricity companies due to a shortage. Two months later, another GO was issued allowing the purchase of electricity from anywhere in the country.

Emergency Procurement and Doubts

Officials justified the direct agreement without a tender process by citing the emergency caused by the electricity shortage. Examination of the documents revealed that the Chhattisgarh power plant was still under construction at the time of the agreement, only beginning supply three years later in 2017, and then ceasing after four years. The extent of the loss and where the decision originated remains to be determined.

Suspicions Regarding Bhadradri Construction

Several doubts have been raised about the construction of the Bhadradri power plant, particularly regarding the decision to use sub-critical technology, which results in an annual loss of Rs. 250 to 300 crores due to additional coal purchases and increased environmental pollution. Despite the nationwide trend of constructing thermal power plants with super-critical technology, the Bhadradri plant was built with sub-critical technology for faster completion. Questions arise as to why the super-critical technology used in Kothagudem was not considered for Bhadradri.

The Yadadri thermal plant’s construction was also given through the nomination process rather than a tender. Clarifications have been sought from former and current CMDs of BHEL. As of now, electricity production at Yadadri has not started, with the necessary railway line for coal transportation still incomplete.

Warning by Arvind Kumar

Arvind Kumar, who was the Energy Department Secretary in November 2016, had warned that the power purchase agreement with Chhattisgarh would impose a significant financial burden on the state. He suggested in a letter to the Telangana ERC that purchasing electricity from the open market would save money. Arvind Kumar stated on Tuesday that he was transferred after sending the letter and is unaware of subsequent developments. The commission is reviewing documents to understand the decisions made after his transfer.

Despite his warning, it appears that the ERC did not consider it, and the then Telangana government agreed to let the Chhattisgarh ERC set the purchase price, resulting in higher payments.

Justice Narasimha Reddy emphasized that these aspects have come to the commission’s attention during the inquiry.

Related Articles

Ladli Behna Awas Yojana 2023 సైబర్ నేరాలపై పోలీసుల వినూత్న ప్రచారం Telangana Police Ram Gopal Varma’s 9 Critical Questions for Pawan Kalyan Reliance Foundation Scholarships 2023 Chandrababu Naidu’s Arrest: A Storm in Andhra Pradesh