EC orders Gujarat to put pvt power deals on hold

NEW DELHI, Jan 10: The Election Commission has rapped the Gujarat government for its undue haste in finalising private power deals and has d...

NEW DELHI, Jan 10: The Election Commission has rapped the Gujarat government for its undue haste in finalising private power deals and has directed them to hold these in abeyance.

A full-meeting of the Commission has "strongly advised" the Gujarat government not to implement the resolution of December 22 and asked them to keep it on hold till the elections get over by March 15.

The EC had asked the Dilip Parikh government to submit the details of the Rs 1,700 crore power projects that the Gujarat Power Corporation Ltd (GPCL) had cleared in a record two weeks.

Story continues below this ad

The Commission said it had received several complaints recently alleging that the state government, together with the State Electricity Board and the GPCL were rushing through with "extraordinary haste" to finalise deals with private companies relating to the power sector at a time when the elections were imminent with the dissolution of the Lok Sabha.

Deputy Election Commissioner Subas Pani said the Commission had taken a "serious view" of the state’s action saying it was "highly improper". He said the Commission has directed the state government to shelve all projects and agreements in this connection till the completion of the poll process.

The Indian Express had on December 30 carried a report that the GPCL had cleared seven barge-mounted power projects within a fortnight, even bypassing the norms by not calling for offers through an international tender.

The complaints received by the EC related to signing of power purchase agreements (PPA), finalising the barge-mounted power projects and announcing new facilities and incentives for setting up captive power plants.

Story continues below this ad

The state government’s reply to the EC’s call for details was clearly not satisfactory.