Date:30/04/2007 URL: http://www.thehindu.com/2007/04/30/stories/2007043000620900.htm

National

Sasan power project under CVC scanner

Sujay Mehdudia

Report from CVO sought by June-end

Power Ministry, PFC have referred it to Justice Ministry

Power Ministry faulted for not showing due diligence

NEW DELHI: In a significant development that is likely to upset the Power Ministry's plans to achieve "Power for All'' by 2012, the controversial 4,000 MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh has come under the "scanner'' of the Central Vigilance Commission (CVC) which has asked the Chief Vigilance Officer of the Power Ministry to probe the matter and submit a report by June-end.

Communication

In its communication to the Parliamentary Standing Committee on Energy, the Union Ministry has stated: "Central Vigilance Commission [CVC] vide its letter dated March 26, 2007, addressed to the Ministry has directed the CVO of the Ministry of Power to conduct an investigation into a complaint received by the CVC regarding the controversy concerning the Sasan UMPP. The CVC has sought the investigation report within 12 weeks of the receipt of its order by the Ministry of Power.''

In a related development, it is understood the Ministry of Power as well as the Power Finance Corporation (PFC), the nodal agency for implementation of UMPPs, have referred the matter to the Law and Justice Ministry seeking its opinion on the issues that have cropped up before and after the CVC intervention. The Lanco Infratech consortium, which bagged the project, has maintained that it had not violated any terms or conditions of the contract and the allegations against it were aimed at derailing the project.

Concern over delay

Expressing serious concern over the delay in the clearance of the project, the Committee headed by Congress MP, Gurudas Kamat, felt the very fact that there arose a need for CVC's involvement in the beginning of the project itself had made it clear that due diligence was not shown by the Ministry of Power in award of the project. It has desired that responsibility in this connection should be fixed and "stern action'' be taken against the guilty. "The Committee desires to know from the Ministry as to how the matter concerning award of contract for Sasan project consequent on change of ownership of the successful bidder was proposed to be resolved.''

PFC non-committal

On its part, PFC remained non-committal over the fate of the controversial Sasan project. "There are some legal and contractual issues, which are being examined by different agencies. As soon as these issues are resolved, the project would be transferred,'' PFC Chairman, V.K. Garg told reporters here early this week.