Shinde's letter lost midway

Even as about two months have passed, a letter sent by the Centre asking the Chhattisgarh government to take action against a power company for allegedly cheating various government agencies has not reached Raipur from New Delhi.

The Union Power Minister, Sushil Kumar Shinde sent a letter to Chhattisgarh Chief Minister Raman Singh on January 15, 2010 underlining serious irregularities committed by Hyderabad-based SV Power Private Limited. The company had inked an agreement with the state government to set up a bio-mass and coal washery rejects combustion based power project at Korba.

"I noticed that M/s SV Power Private Limited has signed power purchase-cum-wheeling agreement only to get certain incentives, concessions and sale tax relief under present scheme and loans from the various banks at subsidised rates," Shinde said in his letter. The company has gradually shifted its business from bio-mass to thermal power plant, he added.

The letter bearing number 1/146/2009/6493--the copy of which is in possession with Business Standard--said that the company had not only cheated the Central/State governments but has also ditched various banks in Chhattisgarh that had given loans to the tune of Rs 500 crore.