The Lokayukta has directed the Vice-Chairman and Managing Director, APGENCO, not to allow any work on the 600 MW Rayalaseema Thermal Power Plant (RTPP) at Kalamalla in Kadapa, following a complaint about large scale scam in awarding the contract.
Rayalaseema Rashtra Samithi Party president Kuncham Venkata Subba Reddy lodged a complaint with the Lokayukta in February this year about the alleged embezzlement of government funds to the tune of Rs.532 crore in awarding the contract to M/s Tecpro System Ltd., Chennai.
He contended that the while the civil works for Kakatiya Thermal Power Plant of the same 600 MW capacity at Warangal was awarded to the same company for Rs.723 crore, in the case of RTPP, the contractor was allowed to jack up the cost to Rs.1,255 crore. The Lokayukta in its order on Thursday, also directed the APGENCO MD to submit a detailed report within four weeks explaining the circumstances under which the RTPP works were awarded for 1,255 crore. Mr. Venkata Subba Reddy speaking to media persons here on Friday alleged that he was forced to approach the Lokayukta as the government failed to take action against the officials concerned and the contractor for causing loss to the exchequer even after one year.
In his complaint to Lokayukta, Mr. Subba Reddy further alleged that the AP GENCO issued the work order to Tecpro System though other contractors quoted lower rates. The AP GENCO officials had given vague response to his query about the details of the contract under the Right to Information Act, he said.
