The Hindu : Andhra Pradesh News : Probe promised into fake power plant

Online edition of India's National Newspaper
Saturday, Dec 11, 2004

Andhra Pradesh

Andhra Pradesh

Probe promised into fake power plant

By Our Staff Reporter

HYDERABAD, DEC. 10. The Government has promised to institute an enquiry into the fake power plant at Kanagal in Medak district, allegedly set up by politicians with benami ownership to claim loans at lower interest rate and subsidies.

Replying to a supplementary by S. Ramalinga Reddy (TRS) during question hour in the Assembly on Friday, the Finance Minister, K. Rosaiah, denied that the plant was bogus since it had generated 3.9 lakh units of power before closure in August 2000.

Mr. Reddy alleged that the unit was set up with one MW capacity based on biogas by politicians including C. Mutyam Reddy, former Telugu Desam Minister, with a view to claiming subsidies available for non-conventional energy sources.

Against a project cost of Rs. 1.8 crores, the developers took Rs. 1.31 crores from IREDA and claimed Rs. 7 lakhs subsidy before closing the unit. He demanded recovery of the money and prosecution of the developers.

Harsha project failure

The Minister clarified that the failure of Harsha Power Project was due to a new technology used with 30 per cent diesel and 70 per cent biogas as fuel. He closed the matter even as TDP members demanded a judicial inquiry covering all such plants owned by politicians, including the Chief Minister.

The Revenue Minister, D. Prasada Rao, gave a month time to take back the Government land encroached by GITAM College at Visakhapatnam to which 71.15 acres was already allotted.

Naresh Kumar Agarwal (Congress) complained that the college, owned by M.V.V.S. Murthy, former Telugu Desam MP, had illegally occupied 13.5 acres of assigned land and six acres of adjacent land. Mr. Kumar wanted a House committee probe into the scandal and filing of land-grabbing case.

Dealing with another question by P. Shankar Rao (Congress) the Minister ruled out action against the Joint Inspector-General, Registration & Stamps, citing the findings made by Upa Lok Ayukta. Dr. Shankar Rao earlier levelled corruption charges against the official.

Unfair trade practice

Devineni Rajasekhar (Congress) alleged that traders were avoiding sales tax by falsely showing on record despatch of stocks of edible oils to their "fictitious branches" in Karnataka, Tamil Nadu, Orissa and Chhattisgarh.

The Commercial Taxes Minister, K. Ramakrishna, admitted to detection of such unfair practice, and stated that Rs. 7.9 crores was recovered from them. He said, the same means were being used in Hyderabad, Vijayawada, Kakinada and parts of Rayalaseema in purchase of vehicles and promised to take action.

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