The Hindu Business Line : Maharashtra cancels Rs 998-cr deal to Kalpataru Power

The Maharashtra Government has decided to cancel a Rs 998-crore contract awarded to Kalpataru Power Transmission (KPTL), under Phase-II of the feeder separation programme, on the grounds of substandard work.

The Maharashtra Power Minister, Mr Sunil Tatkare, made the announcement in the State Assembly on Tuesday and added that an enquiry would be conducted.

Enquiry

He also confirmed to Business Line that the work done by the company so far would be scrutinised and the contract cancelled.

According to the calling attention notice tabled in the State Assembly, Phase-I of the programme began in 23 districts in June 2006 for setting up 897 feeders with a provision of Rs 943 crore.

KPTL was given a Rs 388-crore contract to set up 751 feeders.

Phase II

Phase-II kicked off in October 2007 in 20 districts in which KPTL was given a Rs 998-crore contract to set up 955 feeders. The notice said KPTL was way behind schedule in January 2009 and had put up only 190 feeders so far.

The State imposed a Rs 99.50-lakh fine on the company for the Phase-I delay. Despite this, the Phase-II contract was awarded to KPTL as its rates were low, Mr Tatkare told the House.

Mr Devendra Phadnis (BJP), who moved the notice, told Business Line that KPTL has been acting in an “irresponsible manner” and that despite the delays the bank guarantees furnished by the company had not been encashed.

KPTL officials were not available for comment.

Villager Feeder separation programme

The village feeder separation programme is being implemented by the Maharashtra State Electricity Distribution Company to manage power supply in rural areas.

The plan is to create separate power feeders for agriculture and domestic power consumption so that load shedding can be managed effectively and people in the rural areas face fewer problems.

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