2 yrs after workers death, NTPC admits to counterfeit pipes and their usage

In 2017, a worker was killed during an equipment test at NTPC's then under-construction Meja power plant in UP

Around two years ago, a worker was killed during an equipment test at NTPC’s then under construction Meja power plant in Uttar Pradesh.

In December, the country’s largest power producer admitted in the Bombay High Court that some of its pipes at that plant are counterfeit and it continues to use some of them.

NTPC’s tryst with counterfeit pipes dates back to January 14, 2017, when a worker at Meja was found dead. The death was due to an accident during the test, an NTPC’s spokesperson said.

The spokesperson added that such routine tests do not lead to any fatality. However, in this case, a life was lost due to unauthorised presence in the cordoned-off area.

In a separate response on January 25, 2019, to an RTI application filed by Business Standard, seeking details on industrial deaths at its under construction sites, NTPC said a death was reported on January 14, 2017 at Meja plant due to a fall from a height.

The January 2017 equipment testing at Meja also opened up a trail of investigation as one of the pipes failed to withstand the test conditions. The investigation, acco­rding to NTPC, led to the discovery that certificates stated to have been issued by a particular manufacturer were not relevant to the pipes supplied.

Two years later, Meja power plant found a mention in a Bombay High Court order dated December 21, 2018. “Mr Chandrasekhar is present in court. He states that he is aware that certain pipes are installed in the Mega (Meja) Urja plant of NTPC on the basis of a misrepresentation that the same are manufactured by the plaintiff,” the order, available on the court website reads.

M Chandrasekaran is an executive director with NTPC and the plaintiff is a reputed pipe supplier fighting the infringement of intellectual property case against a steel trader.

“The statement recorded in the December 21, 2018 order does seem to suggest that the NTPC is accepting that the pipes supplied are counterfeit to the extent that they were supplied by domestic manufacturers with forged and fabricated certificates purportedly issued by international pipe manufacturers,” said Anand Varma, a Supreme Court lawyer who reviewed the order for Business Standard.

Meja power plant continues to use some of these pipes. The Bombay HC order observed, “He (Chandr­asekaran) states that extensive tests were carried out on the pipes already installed and 16 of these were found to be below the prescribed standards. In view thereof, such pipes were replaced/­removed.” 

It further noted, “He further states that NTPC has continued to use the pipes which were found to be meeting prescribed standards.”

According to NTPC, the contractor for the power plant is required to meet the standards of equipment and not necessarily a particular make. “The contractor is allowed to choose from any such suppliers having the required manufacturing and supply experience and whose product is capable of complying with the rele­vant governing standard requirements,” said the NTPC spokesperson, defending the decision to continue with so­me of the pipes after the testing.

However, there could be other concerns for the power producer. “The Factories Act places the primary obligations for all aspects within a factory on the occupier, which in case of a company is normally a director. The use of such counterfeit/spurious pipes raises a very serious question on the quality controls and due diligence processes at NTPC,” Varma said.

In February 2018, a labour ministry reply to the Lok Sabha had said 1,135 fatal deaths were reported at factories in India in 2016, another 1,145 in 2015 and 1,211 in 2014.

Meja Urja Vikas is a joint venture between the Uttar Pra­desh government and the NT­PC, with two units of 660 Mw each. So far, four other ind­ustrial deaths have been repo­rted at Meja on different occasions during its construction, according to the RTI reply.

NTPC in its statement to Bombay High Court added that it will not blame the pipe supplier for any untoward incident. 

Case in a nutshell

• Worker at Meja was found dead on January 14, 2017. NTPC says death caused by an accident
• In an RTI response in Jan, NTPC says the death was caused due to a fall from a height
• A series of investigations follows as one of the pipes fails to withstand the test conditions  
• An HC order observes that 16 pipes were below the prescribed standards and were removed