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Home News Power Sector News Rs 50,000 crore power purchase scam in Madhya Pradesh, alleges AAP

Rs 50,000 crore power purchase scam in Madhya Pradesh, alleges AAP

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AAPA scam to the tune of Rs 50,000 crore has been executed by signing 'illegal' power purchase agreements with the six private power producers by state government, alleged leaders of Aam Admi Party's state unit on the basis of the documents procured under the RTI Act 2005.

Not only the PPAs were signed with all the five on the same day, but two of officials who signed it on January 5, 2011, were not even posted on the designations which empower them to sign those agreements, however they signed it showing fake designations.

These illegal PPAs forced state to pay Rs 2,163 crore every year to these companies even as power is not purchased from them, as state is power surplus, alleged AAP leaders. "We were shocked to find the exorbitant rates of power in the state and started to find out the reasons behind it, and subsequently several applications under the RTI Act were filed," state convener of the party, Alok Agarwal said.

"The outcomes were shocking. Documents reveals state has executed a Rs 50,000 crore scam by illegally signing PPAs with six private power producers, making the power costly," Agarwal alleged.

Explaining further, Agarwal said, "State government signed PPAs with six power producers on the same day, January 5, 2011 at Jabalpur and Bhopal for purchasing 1,575 MW of power for 25 years. But as per the tariff policy declared by the government of India on January 6, 2006 and further clarification published on on December 9, 2010, state government's power purchase Act 2004 amended in 2006, any such power purchase move can only be done by competitive bidding."

Moreover, two officials namely Gajra Mehta and Sanjay Mohase, were not posted as director commercial of Paschim Kshetra Vidyut Vitaram Company Limited, when the agreements were signed on January 5, 2011.

Source- TOI


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