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Home News Power Sector News Satyam scandal may pull plug on MSEDCL power plans

Satyam scandal may pull plug on MSEDCL power plans

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Satyam ScamThe revamp and repair of worn-out power supply network in Maharashtra has received a setback as many of the modernisation contracts have been awarded to Maytas Infra, the beleaguered company promoted by tainted Satyam honcho Ramalinga Raju's family. However, Maharashtra State Electricity Distribution Co Ltd (MSEDCL) has not yet decided to either revoke or review the contracts. Maytas Infra, which had risen rapidly in the infrastructure business, bagged contracts for the network upgrade in several towns and cities last year. Its main task is to replace old transformers, distribution poles, create new sub-stations and take power connection to the end-users premises.

MSEDCL sources said Maytas has been assigned to upgrade the distribution network mostly in the Marathwada and Vidarbha regions.

Maytas' contract also includes changing the network in Degloor division of Nanded district, hometown of chief minister Ashok Chavan. In Vidarbha, ironically, Maytas has got seven contracts in Amravati and Buldhana, which reel from 11 to 13 hours of powercuts every day. "Maytas will have to lay a new power supply network and connecting it to 7,880 agriculture pumps. The contract was signed in July 2008 and Maytas has a year's time to finish it,'' said an official.

According to an official, Maytas, much before the Satyam fiasco rocked the corporate world, had been pulled up by MSEDCL's local division heads for going slow on laying new network. "Maytas has virtually not done anything in Amravati and Buldhana since they got the contract. Now, it's almost impossible for them to finish all the work by July 2009,'' he said. However, MSEDCL appears reluctant to revoke these contracts as Maytas still has time to execute them.

"We have taken 10% of the contract value as bank guarantee for each case. If Maytas fails to execute the projects, it will have to forfeit the deposited amount,'' said the official.

It appears that MSEDCL may have to make do with the bank guarantees alone unless it reviews the work orders.

Source- Times of India



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