TANGEDCO likely to lose Rs 1 lakh crore through PPAs, alleges Arappor Iyakkam

TANGEDCO likely to lose Rs 1 lakh crore through PPAs, alleges Arappor Iyakkam
Chennai based anti-corruption watchdog, Arappor Iyakkam, has given a complaint to the Directorate of Vigilance and Anti Corruption (DVAC) alleging a massive scam in the state Electricity Department which can likely result in a loss to the tune of over Rs 1 lakh crore to the exchequer. The NGO has alleged that this loss for Tamil Nadu Generation and Distribution Corporation (TANGEDCO) will be a result of the state awarding 2830 MW of power purchase agreements (PPA) to private players for a period of 15 years between 2013 and 2028.  The convener of Arappor Iyakkam, Jayaraman Venkatesan addressing the media alleged, "One unit of electricity is available at Rs 2.50-3.50 but the government is purchasing the electricity for a price between Rs 5-6. This is an increase of Rs 2-2.50 per unit and the performance audit mentions that the loss to the chequer because of this purchase, just between 2013 and 2018 stands at Rs 30,072 crore. ” In the complaint to DVAC, Jayaraman Venkatesan submitted reports of Comptroller and Auditor General, the Tamil Nadu Electricity Regulatory Commission (TNERC) order by retired member Nagalsamy and many other reports. The CAG audit report said, "Purchase of power constituted the largest cost element of TANGEDCO ranging from 53.32 per cent in 2014-15 to 60.78 per cent in 2017-18. The performance audit was taken up between April and August 2018 and examined power purchase transactions amounting to Rs 68, 879 crore (60 percent) of the total power purchase made during 2013-18." He also questioned the reason why the CAG audit report of 2017-18 that mentions the loss was not tabled for discussion in the Assembly. The complaint also said, “The report is being delayed and is yet to be placed in the Assembly but action based on this report is immediately required as it warrants larger public interest to save our Electricity TANGEDCO Department from timely intervention of DVAC can save losses to the tune of Rs 46,875 crores in the future and can potentially save the TANGEDCO Department itself from sinking completely.” The organization also raised complaints pertaining to violation of guidelines under Electricity Act and failure of evaluation committee. Citing the allegations, Jayaraman requested DVAC to register a case against Electricity Minister Thangamani, Former Electricity Minister Natham Viswanathan and others. He also urged the DVAC to investigate the massive corruption and maladministration under Prevention of Corruption Act, IPC sections and other relevant laws, by the public servants who were responsible for the power purchase agreement in TANGEDCO. Jayaraman said, “The DVAC has not responded to our complaint yet. As per the procedure, DVAC has to receive permission of Tamil Nadu Governor so we hope that they will soon take action to stop the irregularity.”

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