The Hindu : New Delhi News : BJP alleges massive power scam

Online edition of India's National Newspaper
Sunday, Dec 19, 2004

New Delhi

New Delhi

BJP alleges massive power scam

By Our Staff Reporter

NEW DELHI, DEC. 18. Warning the people of Delhi against another tariff increase, this time in the power sector, the Delhi Bharatiya Janata Party today alleged that there was a "massive power scam'' in the privatisation of power and that the private companies in active connivance with the Sheila Dikshit Government were conveniently looting the public exchequer.

Addressing a joint press conference, the BJP zonal in-charge, Madan Lal Khurana, and the Delhi BJP president, Harsh Vardhan, charged the Delhi Government with opening up the public exchequer for loot by the private distribution companies without any accountability and transparency in place.

Accusing the Delhi Government of selling away the interests of the common man, Mr. Khurana said it was most shocking that despite two and a half years into privatisation, the power companies still owed Rs. 7,000 crores to the Delhi Government. What was even more shocking was that no effort was being made by the Government to ensure recovery of this amount indicating that something was fishy in the whole affair.

As per the agreed terms and conditions at the time of privatisation, the private companies were given the responsibility for recovery of arrears and these were to be shared in the ratio of 80:20 in favour of the Government. Even after a lapse of so much time, Mr. Khurana added, these private companies had merely repaid about Rs. 200 crores to the Government and the fate of the rest of the amount was still not known.

Similarly, Dr. Vardhan and Mr. Khurana pointed out that after privatisation the Delhi Government had earmarked Rs. 3.450 crores for payment to these companies over a period of five years. However, these three distribution companies have already received Rs. 3,566 crores under this head in the shape of cash -- Rs. 700 crores as regulatory assets and Rs. 1100 crores by hike in tariff within two and half years time. The power companies are now demanding Rs. 1,500 crores to cover the deficit. To pay the regulatory assets, these companies require Rs. 840 crores more. All these amounts will now be recovered from the people of Delhi by raising tariff in the next few months.

Ridiculing the private distribution companies for installing manipulated meters that often run fast resulting in increased power bills, Mr. Khurana, who has declared that he will not contest any election in future, said another severe problem being faced by consumers was inflated bills. It was unfortunate that no proper mechanism had been put in place to redress such grievances of the people and the role of the Delhi Government was shameful as it is being party to the exploitation of consumers at the hands of these unscrupulous private companies.

"Despite being 49 per cent stakeholder in the distribution network, the Delhi Government has till date not filed any complaint against the private companies or has not taken them to task for looting the exchequer. There is a clear connivance at the highest level in the political leadership as well as the bureaucracy in Delhi indicating that all was not well and a thorough probe was needed to unearth the truth,'' Dr. Vardhan stated.

Mr. Khurana said that the BJP would make public its plan to "expose the misdeeds of the Sheila Dikshit Government on the issue of privatisation of power very shortly". The Comptroller and Auditor General has also pointed to large-scale anomalies to the tune of Rs. 3,000 crores in its report and has also alleged that full information was not provided to it, exposing the claim of the Sheila Dikshit Government of being transparent and open. "The silence of the Chief Minister is not only intriguing but also raises a lot of suspicion. She has rewarded and given plum postings to all those officers who were involved in privatisation of power sector in order to keep them in good humour and hide the misdeeds of her Government with relation to the power scam,'' Mr. Khurana added.

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