Chandra Babu Reforms - Ap State Electricty Board !

[BobbyFischer]

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The privatization of the State Electricity Board was also conducted on similar lines. Before the beginning of the electricity reforms under Chandrababu, the Electricity Board was making profits under the leadership of its chairman Narla Tatarao. From 1995, the Board was pushed into losses in a planned manner. Uncontrollable corruption of some electricity board officials and political leaders, illegal supply of electricity to big contractors, millers and factory owners with huge political clout, crores of arrears accumulated against big contractors and industrialists, these are the reasons for the losses in Electricity Board. The Electricity Board’s former Chairman, Tatarao, has officially explained with examples that these are the real reasons for the losses to the Board and not the free electricity supplied to farmers. The astonishing facts coming into light day by day with the reforms are proving that Tatarao was very correct in telling the real reasons for the losses to the board.

The Chandrababu government trifurcated the APSEB, having 80 thousand crores of assets, into three companies: APGENCO, APTRANSCO and APDISCOM. In these the total assets of APDISCOM (Distributing Company), with four divisions, would be having at least 25 thousand crores of assets. But the Chandrababu government, announced their worth as only Rs.435 crores (at their book value) in their ‘second transfer scheme’ declared on 1st April 2000. And now this will be sold to any private person at half of it i.e., for about 220 crores (huge amounts will be amassed by brokers in this transaction). Nothing more is required to explain the criminal manner in which Chandrababu is transferring the government assets to his own people. The Electricity regulatory commission has issued licenses for the distribution and retail supply to these four DISCOM companies on 1st January 2000. According to section 11(1) of this licence, any DISCOM company can sell its property at book value. But it is required to take permission from the Regulatory Commission if the asset value is more than Rs.5 crores. It means by splitting the assets to less than 5 crores value they can easily sell the Board properties. Even the CAG (Comptroller and Auditor General) severely criticized this clause.

[BobbyFischer]

The majority of properties of the four DISCOM companies is located in the prime locality of Hyderabad city and have very high prices. But the cheat government of Chandrababu is showing their value at rates prevailing in 1959 in its Balance Sheet. In this way the property value was assessed at Rs.6 crores and 77 lakhs (Northern DISCOM – 1.36 crores, Central DISCOM –2.66 crores, Southern DISCOM – 1.66 crores, Eastern DISCOM – 1.15 crores). And if we go into the details of DISCOM lands in various districts, it is having 5065 acres of land in the state. It means 2,45,14,600 yards of land. According to the government’s estimate the value of the land is Rs.2.76 per yard. Can land be available at this rate in any corner of the state? The market value for its lands in cities like Hyderabad and Vishakapattanam is in the range of Rs 5 to 10 thousands per square yard. In any small town and in any corner, land value can’t be less than Rs 500 per square yard.

And there is no limit to the irregularities in the Power Purchase Agreements (PPAs), which the government entered into with private power companies. The payments made by the Chandrababu government to the ‘Lanco-Kondaplli’ power company will shake any one’s heart. From this company, APTRANSCO purchased 3.65 Million Units in August and paid Rs 28.48 crores at the rate of Rs 78 per unit! The Govt is saying that these huge payments are necessary as per the agreement made with that company. TRANSCO declared that this burden must be borne by the people in the form of increased tariffs. And there is no need to describe TRANSCO’s activities. Even after having surplus power in the state, the government entered into PPAs with four private companies – Konaseema, Vemagiri, Gautami and GVK industries. There is no approval from the Electricity Regulatory Commission for these companies. Even then TRANSCO is spending hundreds of crores of rupees on them in the name of ‘evacuation’. The reason for this is nothing but political pressures. And there will be huge kickbacks behind these pressures. That is the reason why TRANSCO is making losses of Rs 500 crores per annum.

[mahesh1]

[chandra916]

[rams1986]

[Tadika]

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