Engineers' association allege scam in Punjab power corporation

The Punjab State Electricity Board Engineers' Association (PSEBEA) today alleged that the State Power Corporation Limited management and the state government were extending undue benefits to private companies, causing a huge loss to the exchequer.
In a 'white paper' released here, the association alleged irregularities in the state's power sector, and claimed that private firms had been extended undue benefits to the tune of over Rs 3,000 crore.
PSEBEA president Baldev Singh Sra and general secretary Sanjeev Sood at a joint press conference alleged that the state government was not considering the interests of the consumers.
They alleged that the Punjab State Power Corporation Limited (PSPCL), under instruction from the state government, was "deliberately delaying" the collection of liquidated damages against Sterile Energy. The total dues would be around Rs 1,000 crore this April, they added.

Sra said the first unit of Goindwal Sahib Thermal was to be commissioned in May 13 and the Unit 2 in November last year, but the private firm had failed to commission the units and liquidated damages amounting to Rs 129 crore had not so far been recovered by the PSPCL.
He expressed apprehension that the state government might waive it off, and claimed "it is the biggest scam in the power sector" in Punjab.

Sra said all the three power plants at Goindwal Sahib, Talwandi Sabo and Rajpura had been awarded to private players ignoring the constant pleas of the association and experts to execute at least one of these by the state sector to protect the interests of the consumers.

A senior PSPCL official, however, denied the allegations as "a bundle of lies". The official, on condition of anonymity, said the engineers' association had disclosed nothing new as it was recorded in the agreements and tenders.
He said the PSPCL had repeatedly been following on the recoveries from the private companies and the matter would be dealt according to the agreements.