Statement of Vidyut Karmachari Sanyukta Sangharsh Samiti, Uttar Pradesh
This is a small glimpse of the scams in the privatisation of electricity. Try to understand it carefully…
In a major scam, the electricity distribution of Agra city was handed over to Torrent Power Company in 2010. After that, the CAG conducted an investigation in 2015, and after the investigation, the CAG wrote in its report that “the figures shown in the RFP prepared for the bidding of Agra franchise and the reserve rates estimated by the consultant were misleading and based on wrong assumptions, so the entire bidding process should have been cancelled and a new tender should have been issued on the basis of corrected data.”
Many points of the scam have been highlighted in the CAG report, which have been suppressed.
Another very important point raised by CAG is that Dakshinchal Vidyut Vitran Nigam declared T&D losses as 44.85% and storage capacity as 74.77% instead of the original figures given in the RFP of 28.22% T&D losses and 82.34% storage capacity, which had neither any basis nor any rationale. By declaring T&D losses as 44.85% instead of 28.2%, the power corporation is supplying electricity to Torrent Power at very cheap rates, and till date, it is incurring losses of billions of rupees every year.
CAG said in its report that owing to huge irregularities in the bid evaluation process, Power Corporation would suffer a loss of Rs 4601 crores in 18 years of the contract. Sangharsh Samiti said that the Power Corporation has suffered a loss of Rs 3432 crores in 14 years by supplying electricity to Torrent Power Company at a price lower than its cost. This makes it clear that CAG had correctly evaluated the losses due to wrong contract in its report. Currently, the Power Corporation is purchasing electricity at Rs. 5.55 per unit and giving it to Torrent Power at just Rs. 4.36 per unit, due to which Power Corporation is incurring a loss of billions in revenue while Torrent Power Company’s profits are increasing.
CAG had termed the entire bidding process for handing over electricity distribution in Agra to Torrent Power as wrong 10 years ago and had recommended its cancellation, but the CAG report was suppressed. Due to this wrong agreement, the Power Corporation is incurring losses of billions of rupees every year.
Honorable Chief Minister Shri Yogi Adityanath ji is requested to order a high-level investigation into the scam in the bidding of Agra franchise and the matter of suppressing the CAG recommendation, and strict action should be taken against those who committed the scam. In view of the above scam, please immediately cancel the process of privatisation of Purvanchal and Dakshinanchal Vidyut Vitran Nigam.