AAP says its allegations on power purchase in MP proven right

The AAP today said its claims were vindicated with the Madhya Pradesh Electricity Regulatory Commission (MPERC) rejecting a petition of the MPPMCL seeking ratification of tariff from April 1, 2013 for the power it is buying from a private player 'unlawfully'.
The MPERC has dismissed a petition of Madhya Pradesh Power Management Company Ltd (MPPMCL) seeking tariff fixation with retrospective effect from April 1, 2013 after unlawfully buying power at a high price, AAP's Madhya Pradesh convener Alok Agrawal said.
"After smelling a rat, since November 11 last year we have been opposing the MPPMCL's move to buy power at Rs 3.12 instead of Rs 2.20 per unit from the private player," he said.

With the MPERC ruling of August 23, AAP's stand has been proven right, he added.
He said the erstwhile Madhya Pradesh State Electricity Board signed an agreement with Power Trading Corporation (PTC) to buy electricity from the private player at Rs 2.20 per unit on May 30, 2005.
However, without the approval of MPERC, the MP Power Management Company started buying electricity from the private player at Rs 3.12 per unit from April 1, 2013, he alleged.

Since then the state has bought 875 crore units of electricity from the private player for around Rs 2,700 crore, Agrawal said.
"Criminal cases should be lodged against the officers involved in the fraud," the AAP leader said. Purchase of electricity from the private company should be stopped immediately, he added.

Chief General Manager of MPPMCL's Commercial Department M P Chincholkar said the MPERC has made no adverse comment while turning down their request for ratification.
"We are going to address the issues for which our request (petition) was not accepted," the CGM added.
He refused to comment on AAP's allegation of fraud.
Chief General Manager of MPPMCL's Power Management Department Pramod Choudhary said he was not the right person to comment on the issue.