The Hindu : Front Page : Pinarayi blames UDF Government for cancellation of agreement

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Thursday, Jul 21, 2005

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Pinarayi blames UDF Government for cancellation of agreement

Staff Reporter

MoU between KSEB and SNC Lavalin for development of Malabar Cancer Centre

REPLIES TO CHARGES: Pinarayi Vijayan says the row is politically motivated.

KOCHI: CPI(M) State secretary Pinarayi Vijayan has said that the UDF Government is responsible for the Memorandum of Understanding (MoU) signed between the Kerala State Electricity Board (KSEB) and SNC Lavalin getting cancelled.

Addressing a press conference at the Deshabhimani office here on Wednesday, Mr. Vijayan, who was addressing the media for the first time after the controversy over the KSEB-Lavalin deal broke out, said the row was politically motivated. He said the Canadian firm should not be allowed to go back on the promises it had made in the MoU for the development of the Malabar Cancer Centre (MCC).

Mr. Vijayan said the MoU was signed on August 10, 1995 during the tenure of the A. K. Antony Government and the LDF Government had only taken the steps to proceed with it. He said that G. Karthikeyan, who was the Electricity Minister then, had himself admitted in the Assembly on Tuesday that the deal was signed during his tenure.

Mr. Vijayan said the laxity shown by the UDF Government had led to the MoU getting cancelled. The UDF Government had not taken any steps to renew the MoU in 2002. The Government was not ready to discuss the MoU or redraft it. After assuming power in 2001, the UDF Government had sanctioned Rs.101 crores to the firm, but had not made any enquiries about the firm's reluctance to offer assistance to the MCC, he said.

Chief Minister Oommen Chandy should get in touch with the Canadian High Commissioner to take up the issue regarding the cancellation of the MoU, he demanded.

Regarding the charges levelled against his involvement in the deal, Mr. Vijayan said he was ready to face any inquiry on the issue. Deciding the mode of inquiry was not his task, he said.

Criticising Electricity Minister Aryadan Mohammed, Mr. Vijayan said Mr. Mohammed was trying to make statements without factual support, all the while giving the impression that he had factual evidence with him.

The row over KSEB-Lavalin broke out after the Comptroller and Auditor General (CAG) of India had found that the entire expenditure of Rs.374.50 crores incurred by the KSEB for the renovation and modernisation of three hydel power projects ``was rendered wasteful.'' The UDF has been blaming Mr. Vijayan who was the Electricity Minister when the project was executed.

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