CAG said the permission to use of excess coal from Moher, Moher Amlohri and Chhatrasal blocks allocated to RPower's Sasan power project after its award "not only vitiated the bidding process but also resulted in undue benefit to the company
New Delhi: Flaying post-bid concessions to Reliance Power (RPower), the Comptroller and Auditor General (CAG) on Friday said the Anil Ambani-led company got undue benefit of Rs29,033 crore when the government allowed use of surplus coal from blocks allotted to Sasan power plant for its other projects, reports PTI.
CAG in its report tabled in Parliament said subsequent to award of the 4,000 MW Sasan ultra mega power project to RPower, the government granted permission to the company to utilise the surplus coal from three mines attached to the projects for the group's Chitrangi project in Madhya Pradesh.
"A reading of all the clauses in the allocation letters together conveyed that clauses were inserted in the coal allocation letter as a safeguard measure to prevent misuse of coal by the developer.
"The permission to use surplus coal in other projects of the bidder after award of the contract based on acceptance of the lowest tariff, vitiated the sanctity of the bidding process which would result in post bid concessions to the developer having significant financial implication," it said.
CAG said the permission to use of excess coal from Moher, Moher Amlohri and Chhatrasal blocks allocated to RPower's Sasan power project after its award "not only vitiated the bidding process but also resulted in undue benefit to RPower".
"This decision resulted in financial benefit of Rs29,033 crore with a net present value of Rs11,852 crore to the project developer (RPower)," the official auditor said.
CAG said it was not clear how Power Ministry in October 2006 came to the conclusion that two initially allocated blocks for the Sasan project (Moher and Moher Amlohri) would be inadequate to fire the 4,000 MW plant.
"The basis on which Ministry of Coal was prevailed upon in October 2006 itself to allot an additional block (Chhatrasal) of coal to Sasan ultra mega power project by de-allocating it from the public sector NTPC is not clear," it said.
CAG said to ensure fair play, a level playground and transparency of the bidding process for future developers to derive comfort in Government action, the allocation of third coal block (Chhatrasal) should be appropriately reviewed.
In seeking such action, it pointed to RPower's commitment to source 20 million tons from the two initial blocks which was adequate to feed the Sasan project.
The audit estimated the financial benefit that will accrue to RPower on the basis of comparison of tariff of Sasan project (Rs1.196 per unit) with that of Chitrangi project (Rs2.450 for Madhya Pradesh and Rs3.702 for Uttar Pradesh).
"Government need to generate confidence among bidders of future UMPPs of its equity and fairness," it said.
The worker's union said it will try to rally support of other unions in the Gurgaon-Manesar industrial belt against dismissal of Manesar plant workers
New Delhi: Workers of Maruti Suzuki India's Gurgaon plant have opposed the decision of the management to sack their 500 colleagues at the company's Manesar facility, reports PTI.
Maruti Udyog Kamgar Union (MUKU), the workers' body at the Gurgaon factory of Maruti Suzuki India (MSI), said it will try to rally support of other unions in the Gurgaon-Manesar industrial belt against dismissal of Manesar plant workers.
"We are opposed to the sacking of workers at the Manesar plant. This was not the right thing," MUKU general secretary Kuldeep Jhangu said.
He further said MUKU, along with unions from other firms in the Gurgaon-Manesar industrial belt, is organising a protest rally this afternoon at Gurgaon against the sacking of the Manesar workers, apart from making other demands.
Asked what would be MUKU's action if the sacked workers are not reinstated, Jhangu said: "The co-ordination committee which was formed sometime back will decide as to what we should do."
He declined a direct reply when pressed if the union would go on strike if the management refused to take back the sacked workers.
Apart from opposing sacking of MSI's Manesar plant workers and "harassment of innocent workers there", the rally will also highlight call for abolition of contract labor and hiking of minimum wage, among others.
Yesterday, MSI Chairman had announced that the company was terminating the services of the workers saying the management have "lost confidence in them".
"We have already issued notices to 500 permanent workers at the plant. The number may increase depending upon the investigation and if there is a need to issue more notices, we will," Bhargava had said.
The workers are being sacked for their alleged involvement in the 18th July incident in which one senior executive of the company was killed and nearly 100 others injured.
MSI has clarified that the extent of damage to the plant due to the arson and violence was "less than Rs10 crore" and not Rs110 crore as being reported.
The month-long lockout at the Manesar plant will be lifted on 21st August and partial production will resume. The company said 300 workers will report for duty.
Production at the plant will be ramped up gradually from an initial 150 cars per day, MSI had said, adding the normal capacity of the plant ranges from 1,500-1,700 units a day depending on demand.
BHEL is planning a 90,000 tonne capacity production facility of seamless tubes products at Bhandara in Maharashtra
Tiruchirapalli: State-run engineering company BHEL is planning to set up a new manufacturing facility in Maharashtra for which it would invest Rs159 crore, reports PTI quoting a top company official.
BHEL Tiruchirapalli Complex Executive Director AV Krishnan said BHEL, which has a special focus on power plant equipment, plans a 90,000 tonne capacity production facility of seamless tubes products at Bhandara in Maharashtra.
Though it is in the initial stage, pending land acquisition, BHEL has decided to invest Rs159 crore to augment tubular products available in the western region, where requirement is high, he told PTI.
Krishnan said given the transportation bottlenecks all over the country, the location of the new plant has been chosen near Nagpur due to its easy access to major steel plants like Bhilai and Rourkela.
He expressed hope that things would fortify for the actual blueprint by next month. Production is expected to crystallise in the next two to three years, Krishnan said.