FGG seeks white paper on Genco power plants’ execution

Alleges irregularities in Bhadradri, Yadadri, Kothagudem plants

Forum for Good Governance (FGG) has alleged that serious irregularities have taken place in the ongoing or completed execution of Bhadradri (4×270 MW), Yadadri (5×800 MW) and Kothagudem (800 MW) thermal power plants and requested the Governor to order for publication of a white paper on the working of TS-Genco, particularly on execution of Bhadradri and Yadadri.

In a detailed letter to Dr. Tamilisai Soundararajan seeking her directions to the power utility, secretary of FGG M. Padmanabha Reddy said that Telangana was facing acute power shortage and with the government support the power utility had taken up three plants with installed capacity of 5,880 MW by entering into an agreement with BHEL.

However, serious irregularities have taken place in the execution of Bhadradri and Yadadri plants, Mr. Reddy said, and explained that instead of super-critical technology, sub-critical technology was used for Bhadradri plant resulting in high cost of energy generation and causing heavy pollution.

Against the plan to supply coal from pit head to plant by rail, it was being transported by road as construction of railway line was not completed causing heavy dust pollution to seven tribal habitations with 10,000 population as 13,000 tonnes of coal was being moved every day to the power plant. Besides, the delay in executing the project had escalated the cost from ₹7,290 crore to ₹10,000 crore.

On Yadadri, the FGG said the project cost had already gone up to ₹35,000 crore from ₹25,000 crore estimated initially and only 30% work is completed so far. Although BHEL is executing the project, the FGG suspects that some middle men (companies) are operating in execution leading to both corruption and delay.

The State was yet to achieve self-reliance in power generation in spite of spending huge money during the last 7 years and as a result the Discoms were purchasing energy by sparing ₹32,000 crore annually burdening consumers more. The forum has also pointed out that there was no financial discipline in TS-Genco as salaries of many employees were very high compared to the industry norms.

“People have a right to know as to what is happening in TS-Genco and we have a reason to believe that the utility is hiding serious lapses taking/taken place in decision-making and implementation,” Mr. Padmanabha Reddy said.

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