Mahagenco accused of engineering deliberate project delays

Amid a serious power shortage in Maharashtra, the Bharatiya Janata Party on Wednesday alleged that the state-owned Maharashtra Power Generation Co Ltd delayed completion of 10 projects over the past seven years, with a combined capacity of 4,570 MW by 1-3 years, leading to a cost escalation of Rs8,616 crore.

The BJP's state spokesperson Madhav Bhandari said these delays at Mahagenco were deliberate so that political bosses and officials concerned could earn hefty bribes from private generators who sold power to the state company Mahavitaran at high prices.

The alleged bribe is 14 paisa per unit, which translates to be hundreds of crores per year.

Bhandari said that the information was based on documents procured under the Right to Information (RTI) act from Mahagenco.

The original cost of these projects was Rs23,120 crore. The escalated costs are recovered through tariff from about 2 crore consumers.

Mahagenco had in May moved an application before the Maharashtra Electricity Regulatory Commission seeking its approval for the projected cost of Rs7 crore per MW for its 1,000 MW Khaperkheda project when the industry benchmark is Rs5-5.5 crore for thermal power projects.

''This scam is bigger than the irrigation corruption. And like irrigation, the leaders of Nationalist Congress Party (NCP) benefited from this scam as well,'' said Bhandari.

The NCP has been heading the energy department since 1999 and controls all three state-run power companies.

Bhandari alleged that senior officer S C Thotve, who did not have required qualifications and experience, was made director of projects in 2007.

''Thotve is a pawn in the hands of his political masters. He got the job even though a selection panel of experts did not find him suitable,'' said Bhandari.

He also produced a letter by then union power secretary Uma Shankar asking the state chief secretary to expedite delayed projects.

Mahagenco faces controversy over other matters as well. Coal India Limited (CIL) and its subsidiary Western Coalfield Limited (WCL) have vehemently denied Mahagenco's allegations of supplying inferior quality coal.

They asserted in the Bombay High Court on Tuesday that 94 per cent of the coal supplied during last three years was of very superior quality.

In an emailed statement Mahagenco denied the projects were deliberately delayed.

''Since 2009, Mahagenco has added 2,000 MW to its capacity, and the delay is on account of delays by equipment supplier Bharat Heavy Electricials Ltd (BHEL) in supplying equipment and also on account of giving engineering procurement and commissioning (EPC) contracts for plant and balance of plant (BoP) to different contractors,'' he said.

In newer projects, Mahagenco has avoided this mistake and given EPC contract for both plant and BoP equipment to a single contractor, he said in the statement.

Boilers, turbines and generators are called 'plant' in a power generation station and equipment such as switchyards, cooling towers and coal handling machinery are termed balance of plant.