The Hindu : Karnataka / Bangalore News : KPCL rapped for short supply of coal to RTPS

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Sunday, Jul 05, 2009
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Karnataka

Karnataka - Bangalore

KPCL rapped for short supply of coal to RTPS

Staff Reporter

BANGALORE: The Karnataka High Court on Friday held Karnataka Power Corporation Limited (KPCL) solely responsible for short supply of coal to Raichur Thermal Power Station (RTPS).

Justice N. Kumar partly allowed a petition by Knowledge Infrastructure of Maharashtra which had challenged the decision of KPCL and the State Government to award contract for supply of coal to State-owned Mineral and Metals Trading Corporation (MMTC).

Coming down heavily on the KPCL, Justice Kumar said a letter from the Central Electricity Authority (CEA) of April 9, 2008, made it clear that the corporation was not lifting coal earmarked for RTPS. “Of the required 12 lakh metric tonnes of coal, KPCL has lifted only 6 lakh.”

He said the committee had acted arbitrarily and they had not kept larger public interest in mind and scuttled competition by giving the contract to MMTC.

He said their action goes against the provision of the Transparency Act.

The court upheld the constitutional validity of Clause (g) 3 of the Act and directed the State and KPCL to purchase coal under the provisions of the Act.

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