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Scores even at the end of Lavalin debate

Special Correspondent

Treasury, Opposition benches use the occasion to score brownie points

THIRUVANANTHAPURAM: The six-hour-long twin debates on the Comptroller and Auditor General's remarks on the Pallivasal-Sengulam-Panniar renovation project and the Kuttiadi Augmentation Scheme, both involving SNC Lavalin of Canada, ended in somewhat of a draw with the treasury and Opposition benches using the occasion to score brownie points and neither being able to silence the other comprehensively.

The much-awaited fireworks did not materialise, despite it being the final day of the 11th Kerala Assembly, and little more than what is already known about the two deals came to light at the end of it all, notwithstanding the fact that the debates themselves were of a rare kind. The ruling United Democratic Front (UDF), which had sought the discussion on the Lavalin deal relating to the Pallivasal-Sengulam-Panniar renovation scheme, appeared happy with occasional jabs and the Opposition in returning the complement.

Replying separately to the two discussions, Power Minister Aryadan Mohammed said the State would have received the outstanding amount of Rs.89.32 crore out of the grant of Rs.98.30 crore if the Government had negotiated directly with the Canadian International Development Agency (CIDA) and not with SNC Lavalin. He accused the Left Democratic Front (LDF) Government of having kept the Kerala State Electricity Board (KSEB) in the dark about the grant component meant for the Malabar Cancer Centre and pointed out that SNC Lavalin communicated its inability to make the amounting due to the cancer centre only much later, after several letters were sent to it. The manner in which the LDF Government had handled the issue and the way it had awarded contract for the construction of the cancer centre called for several clarifications, he said. While on the Kuttiadi augmentation scheme, the Power Minister said the State had only benefited from the relevant deal. The CAG's finding that the money spent on the project had resulted in unfruitful expenditure was not fully correct because in years of sufficient rainfall the inflow into the Kuttiadi reservoir would be sufficient to justify the additional investment. He claimed that the State had not suffered any monetary loss on account of the Kuttiadi Augmentation Scheme as the Government was able to secure from Canada the grant amount in full. The CAG had made adverse remarks about the non-receipt of the entire grant component only because the KSEB could not furnish the relevant detail on time, Mr. Mohammed said.

Earlier, initiating the discussion on the CAG's remarks relating to the Pallivasal-Sengulam-Panniar renovation scheme, M.M. Hassan (Congress) termed the deal the `biggest scam' in the State's history and pointed out that the Government and the KSEB entered into the deal with SNC Lavalin for the renovation scheme disregarding the E. Balanandan Committee's recommendations against it. The blame for this and the losses that the State had suffered, he said, must rest with Pinarayi Vijayan, who was the Power Minister when the deal was struck.

CPI(M) Legislature Party deputy leader Kodiyeri Balakrishnan said the UDF could not evade responsibility for the deal as the Memorandum of Understanding and the Consultancy Agreement between the State and SNC Lavalin were signed when Mr. Karthikeyan was Power Minister. The assistance for the cancer centre was not part of the deal. It was the result of a plea made by former Chief Minister E. K. Nayanar when he visited Canada for negotiations on the renovation project,Mr. Vijayan said.

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