TDMK, PMK hit out at decision to scrap power project bids

Opposition parties in Tamil Nadu Sunday criticised the AIADMK government following the state power utility's decision to scrap the two bids for the much delayed Udangudi power project.

"The case of the Udangudi thermal power plant is an example of this government's corruption and misadministration," said DMK treasurer and former deputy chief minister M.K.Stalin on his Facebook page.

He said the project initially conceived by the DMK government in 2008 was to be executed by Bharat Heavy Electricals Ltd (BHEL) and Tamil Nadu Electricity Board (TNEB), but in 2012 the AIADMK government under J.Jayalalithaa decided to cancel the joint venture with BHEL and decided the TNEB would go alone.

Stalin said the project would have supplied the much needed power to Tamil Nadu at a low cost has been repeatedly delayed and an Indo-Chinese consortium that bid for the project has even gone to the court citing gross violation of tender norms.

He demanded the reason for delaying the project thereby causing the state to lose thousands of crores of rupees needs to be properly investigated.

Terming the TNEB's decision to annul the two bids received as condemnable, PMK founder S.Ramadoss said the decision is wrong.

Noting the bids for the project were called for in 2013 but opened only in 2014, he demanded a clear explanation from the state government for the decision to scrap the bids as only in a meeting held in February it was decided by TNEB not to annul the bids.

According to reports, TNEB on March 13 decided to scrap the two bids received for the Udangudi power project.