Published On : Thu, Dec 7th, 2023

Coal transport scam exposed in connivance with State Energy Ministry: Report

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Nagpur: A recent exposé by a prominent TV news channel has uncovered a concerning coal transport scam allegedly involving Maharashtra’s Energy Ministry. The report sheds light on irregularities in a coal transport contract, raising questions about fair play, adherence to rules, and the quality of coal supplied to Mahagenco’s Nagpur thermal power stations.

The news channel said that on one hand, electricity of thousands of families across the State is cut off daily due to non-payment of just a few rupees and on the other hand, crores of rupees are waived off to businessmen without any reason. What kind of justice is this?

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According to the report, in January 2023 itself, a contract was issued to transport 10 lakh metric tons of coal from Kusmunda, Gevra and Deepika mines of Coal India’s SECL to the thermal power stations of Mahagenco at Nagpur whose central policy is RCR (Road-Cum-Rail). Accordingly, tender bidding was opened in April 2023 in which the contract was allotted to a Jharkhand company BKB Private Limited. It was mandatory for the contractor to deposit Rs 65 crore performance security and Rs 4.52 crore bank guarantee in the tender as per the tender rules. The main rule of this tender was to pay this amount within 7 days of receiving the LOA (Letter of Allotment). LOA (Letter Of Allotment) was given in May 2023.

Still, till September 26, Rs 2.43 crore of bank guarantee, Rs 2.9 crore of coal cost deposit and Rs 65.21 crore of performance security were not paid. Despite this much delay by the concerned contractor, neither the tender was cancelled nor any action was taken. After 4 months, on September 27, a letter is issued by the government officials which directly dented the government’s coffers, the report said

The report claimed that by that order, the performance security amount of Rs 65.21 crore is directly waived off by ignoring the rules and an order is issued to BKB contractor to pay Rs 4.52 crore only as a compensation, which is only and only to benefit the company. This dubious act resulted in the robber on the government treasury.

Why was the tender not cancelled or strict action not taken if the amount which was supposed to be paid within 7 days was not paid for 4 months by breaking the rules? On what basis has the amount of Rs 65.21 been waived off? According to RCR rules, coal should come directly from the mines to the rail siding. But GPRS systems available for monitoring and control are non-functional and taking advantage of this, thousands of tonnes of coal are taken to other places, good quality coal is extracted from it and inferior coal is delivered to the government. A huge fraud is being done to the country and the state. How will you control it?

According to the report, evidence has been found in railway siding Dadhapara that there is major adulteration in the coal being sent to Nagpur Thermal Power Station. Adulterated coal contains stones and adulterated coal which has a deep impact on power generation. The biggest thing is that if it was known earlier in this tender process that as per the rules, the written amount of Rs 65.21 crore had to be waived off, then dozens of transport businessmen would have participated in this tender process.

Therefore, this process taken by the administration and then the relaxation of crores given is wrong in every way and outside the rules. If the general and local contractors had known that giving security of Rs 65.21 crore was just a formality on paper, then not just one but many people would have participated in this tender.

But perhaps the Secretary level officials of the Energy Ministry and those above them do not want to take advantage of the local hardworking people. That is why a condition of Rs. 65.21 crore was kept in the initial process of tender so that the common businessmen could not compete. The act of removing the same rule when it is clear not only raises questions on the officials but also tells the story of the arbitrariness of the officials due to the extreme busy Energy Minister and Deputy Chief Minister of the State.

Not only this, how Mahagenco companies, by bringing all the three important departments of Mahgenco, Mahatransco and Mahadiscom one holding company and remaining in the hands of one person, are committing corruption worth crores of rupees daily, that is a different story.

Commenting on the matter, Leader of Opposition Vijay Wadettiwar said the present State Government is indulging massive corruption at all levels. As far as the said coal transport scam, he said that it going on since the present parties came to power. The three State-owned power companies are running in losses. But the State Government does not care.