Port Blair, March 19: TheSuryachakra Power Corporation Ltd., (SPCL) Hyderabad had established a 20 MW Power plant at Bambooflat encountering various hurdles and difficulties being the remotest area with high logistic problems and commissioned in April 2003. Though the Project was commissioned in April 2003 and even after submitting all the relevant documents relating to project expenditure by the company in November 2003, the complete project cost has not been finalized till date, 10 years completion of the project, said the Executive Director, SPCL Shri K. Vijay Kumar in a communication today.
Giving a brief summary of the cost involved Vijay Kumar explained that the Project Cost approved as per TEC in 1997 was Rs.63.14 Cr while the actual incurred Project Cost in 2003 is Rs.85.10 Cr and the project cost as per audit certificate amounts to Rs.83.66 Cr.
As the quantum of the Project Cost could not be finalized by the A&N Administration till October 2012, the SPCL has filed Petition bearing No. 89/2012 in November 2012 with Joint Electricity Regulatory Commission (JERC) for fixing the final completed project cost at Rs. 83.66 Cr issued towards the actual expenditure incurred for completion of the project.
After hearing arguments from both the sides in 3 hearings, the JERC has issued orders vide letter dtd. 18.02.2013 directing the A&N Administration for releasing the various amounts flowing from provisional cost of Rs.77.595 Crs, the presently monthly tariff being paid to the SPCL. Inspite of above orders issued by JERC, the Administration is reluctant to release the arrears amounting to Rs.101.00 Crs as per signed PPA with Chief Secretary, A&N Administration on one pretext or other thus delaying the payment, Vijay Kumar explained.
“At present the present Electricity Department, A&N Administration is disowning the earlier written commitments given by their earlier senior officials including the Chief Secretary. As a result of delay in approval of Project Cost, as well as not releasing the various arrears withheld and due to the company in the last 10 years, the Company was compelled to spend more than what it is receiving from the A&N Administration”, said the Executive Director.
Considering the attitude of the Administration, the SPCL had made its submissions to the Administration wherein it has made it clear that it is highly impossible for a company to operate with the total provisional due amount of more than Rs. 101.94 Crs and other pending payments like density difference etc. for a project costing Rs. 77.595 Cr. However, the company has been pumping money from other resources, which shows our commitment to provide reliable power to the A&N Administration and in turn to the people of A&N Islands. But this is no longer possible as the group has exhausted all surplus resources and landed itself in deep liquidity crisis due to the above delays. Due to the alarming state of affairs the company is facing Bankruptcy.
Attacking the Administration for unreasonably delaying the payments and for favouring other competitors, Vijay Kumar said, “The Administration is biased towards SPCL. The escalation in the completed project cost is only of 21% from the TEC project cost i.e. from 1997 to 2003 (6 Years), when compared to the contract awarded to the Power Grid Corporation for laying underground cables in the Municipal area and connecting all Power stations of South Andaman in 2007 at Rs.100 Crs as Project cost, has now escalated to Rs.297 Crs which is 300% of the original cost and project cost is yet to be completed though the scheduled date was 2010 (6 Years).
Inspite of providing quality power to the Islanders in the last 10 years and removing from the minds of the Islanders what is load shedding and not having continuous power was there prior April 2003, the A&N Administration is giving us step motherly treatment, concluded the Executive Director, SPCL.