HYDERABAD: The Crime Investigation Department (CID) is planning to shortly charge-sheet developers of the 208-MW Spectrum Power Project, Kakinada.

The agency is also expecting to achieve a breakthrough in its enquiry against two other private power plants -- GVK, Jegurupadu and Lanco, Kondapalli.

Highly placed sources told The Hindu here on Friday that the probe against the three projects followed complaints by the Transmission Corporation of Andhra Pradesh that they had committed irregularities to project higher figures in the power purchase agreements (PPAs), thereby subjecting the utility to a loss of Rs. 462 crores. In the case of Spectrum, the loss is put at Rs. 97 crores.

Duplication

Six persons, including the developer of Spectrum, were arrested, but they secured bail.

The case against the firm, which is selling power to APTransco since 1998, was that it had falsely projected a higher investment cost by creating duplicate sub-contract firms.

The committee headed by the Finance Minister K. Rosaiah could hardly negotiate with developers the question of revising the PPAs of GVK and Lanco in line with the Congress party's election promise.

The Government then referred the cases to the CID based on a complaint by APTransco.

Documents seized

The agency seized vital documents from the APTransco/Government regarding the transactions with GVK and Lanco and is checking with the Income Tax Department and Registrar of Companies for evidence. APTransco had lodged a complaint first with the Andhra Pradesh Electricity Regulatory Commission but the developers secured a court stay questioning the APERC's competence to deal with old PPAs.

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