The report submitted by the Legislative Assembly’s House Committee on Power, headed by Energy Minister D.K. Shivakumar, on Tuesday has the potential to provide political ammunition to the Congress to attack the BJP in the run-up to the Assembly elections. But it appears to be tame, given the political hype that was created ahead of its tabling.
According to the report, the then Energy Minister Shobha Karandlaje had recommended to the Cabinet to cancel the 25-year contract with JSW Energy Ltd. for supplying power at a rate of ₹3.812 a unit (without cost escalation benefit) by describing it as “costly”. After cancelling the tender, power was procured from the same company for three years from 2011-12 at a higher rate. This resulted in an additional payment of ₹1,046.03 crore.
The report also states that the quantum of procurement of power from JSW Energy Ltd. saw a sharp increase after 2010-11, even as power generation at the State-owned Raichur Thermal Power Station and Ballari Thermal Power Station had reduced at the same time.
The report also endorses allegations by BJP members that former Chief Minister H.D. Kumaraswamy caused a loss of ₹63 crore to the State exchequer towards the end of his tenure, by approving a revised contract for transportation of coal.
The committee observed that the quantum of power procurement from private companies as well as the expenditure towards it increased from 2004-05 to 2013-14. As much as 99,051.28 MUs of power was procured from private companies during this period at a cost of ₹43,760.51 crore. The procurement cost of power even touched ₹12.39 a unit between 2005-06 and 2009-10, the report says.
According to the committee, there was a possibility of reducing the financial burden on the exchequer by cutting the short- and medium-term procurement of 33,294.2 MUs of power at a cost of ₹4.81 a unit if proper measures, including utilisation of central share, are considered.
