State govt's power purchase deal with UPCL illegal, expensive'

March 9, 2011

HGD

Udupi, Mar 9: Executive President of Jana Jagruthi Samithi, Nandikooru, Balakrishna Shetty accused the Yediyurappa Government of purchasing power from Udupi Power Corporation Limited (UPCL) without fixing the unit price and without an approved Power Purchase Agreement ratified by the Karnataka Electricity Regulatory Commission, as per the applicable laws.

In a press release, Shetty said that without the power purchase agreement between the power project and the government and without such agreement duly approved by CERC and ratified by the KERC the UPCL has no right to produce power and the plant should immediately shut down on this ground as well.

He said that information received by the Samithi from both the regulatory authorities - Central Electricity Regulatory Commission, New Delhi (CERC) and Karnataka Electricity Regulatory Commission, Bangalore (KERC) - reveal that neither the tariff has been approved by the CERC nor the KERC ratified the Power Purchase Agreement. The purchase of power obviously is made illegally at a high price by the government utility, the Power Corporation of Karnataka Limited and KPTCL.

The project is approved as the mega-power project and qualifies for various benefits like custom duty exemption and certain tax holidays etc. As the project is to supply power to more than one State the tariff is required to be decided by the CERC. It may be recalled that CERC had granted in-principle approval of the capital cost at Rs 4299.12 crores in October 2006 based on the equipment supply by BHEL. The UPCL terminated the agreement with BHEL and purchased far cheaper and perhaps reconditioned equipments without any guaranteed life span from Dong Fang of China.

The cost of the project based on other projects that used Chinese equipments should not be over 3720 crores for the increased capacity of 1200mw. The former Managing Director of KPTCL Bharat Lal Meena has stated that the company should reduce the project cost by at least 600 crores so that cheaper power is made available to the consumers. The Company on the contrary has been claiming increase of 600 crores in the project cost in the name of increase in the capacity.

In the background of the district in-charge Minister Dr VS Acharya's press statement that the State has released Rs 583 crores to the company, the basis of such release of funds becomes highly questionable. While the State is virtually being blackmailed in the name of power shortage large scale embezzlement of State funds on account of this project cannot be ruled out, he alleged.

Samithi demanded the authorities including the Governor and the Judiciary to take the matter suo-motto to get to the bottom of the issue and punish the culprits.


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News Network
December 3,2025

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Mangaluru, Dec 3: A group of Congress workers gathered at the Mangaluru International Airport on Wednesday to welcome AICC general secretary K C Venugopal, but the reception quickly turned into a display of support for Deputy Chief Minister D K Shivakumar.

Venugopal arrived in the city to participate in the centenary commemoration of the historic dialogue between Mahatma Gandhi and Narayana Guru. The event, organised by the Sivagiri Mutt, Varkala, in association with the Mangalore University Sri Narayana Guru Study Chair, is being held on the university’s Konaje campus.

KPCC general secretary Mithun Rai and several party workers had assembled at the airport to receive Venugopal. However, the moment he stepped out, workers began raising slogans backing Shivakumar.

The university programme will be inaugurated by Chief Minister Siddaramaiah.

This show of support comes just a day after Siddaramaiah remarked that Shivakumar would lead the government “when the high command decides.” The chief minister made the comment after a breakfast meeting at Shivakumar’s residence—another public display of camaraderie between the two leaders amid ongoing attempts by the party high command to downplay their leadership rivalry.

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News Network
December 2,2025

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Bengaluru: 'Nati koli saaru' (country chicken curry) considered one of Chief Minister Siddaramaiah’s favourites along with steaming hot idlis was on the breakfast menu at Deputy CM D K Shivakumar’s residence on Tuesday, according to official sources.

The spread also included 'nati koli' fry, vada and pongal, among other items, they said.

In an apparent show of unity, Siddaramaiah visited Shivakumar’s residence for breakfast, just days after the two leaders shared a meal amid a simmering power tussle in the state Congress.

Siddaramaiah drove to the Deputy CM’s residence in Sadashivanagar, where he was received by Shivakumar and his brother D K Suresh, who is a former Congress MP.

Suresh and Kunigal MLA H D Ranganath, a relative of Shivakumar, joined them for breakfast, which featured a mix of vegetarian and non-vegetarian dishes.

Speaking to reporters later, Siddaramaiah said Shivakumar had invited him during his visit to the CM’s residence for breakfast on Saturday.

Asked about the difference between the two meals, the chief minister said, "At his (Shivakumar’s) house it was non-veg, while at my house it was veg. He is a vegetarian, I am a non-vegetarian. I had not prepared non-veg. I told DK to get chicken from the village as you won’t get the original in Bengaluru."

Shivakumar said he had initially invited Siddaramaiah to his residence, but the CM had suggested visiting his place first and reciprocating later. "It was a vegetarian breakfast at the CM’s house on Saturday," he noted.

"Today, I invited him (the CM) to my house. He enjoyed the breakfast, which had his Mysuru taste," Shivakumar added. At this point, Siddaramaiah remarked that Shivakumar’s wife is also from Mysuru.

Saturday’s breakfast at Siddaramaiah’s official residence, held as part of efforts by the Congress high command to ease tensions in the leadership dispute between the two, reportedly included idlis and sambar, according to official sources.

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December 2,2025

Puttur: The long-cherished dream of a government medical college in Puttur has moved a decisive step closer to reality, with the Karnataka State Finance Department granting its official approval for the construction of a new 300-bed hospital.

Puttur MLA Ashok Kumar Rai announced the crucial development to reporters on Monday, confirming that the official communication from the finance department was issued on November 27. This 300-bed facility is intended to be the cornerstone for the establishment of the government medical college, a project announced in the state budget.

Fast-Track Implementation

The MLA outlined an aggressive timeline for the project:

•    A Detailed Project Report (DPR) for the hospital is expected to be ready within 45 days.

•    The tender process for the construction will be completed within two months.

Following the completion of the tender process, Chief Minister Siddaramaiah is scheduled to lay the foundation stone for the project.

"Setting up a medical college in Puttur is a historical decision by the Congress government in Karnataka," Rai stated. The project has an estimated budget allocation of Rs 1,000 crore for the medical college.

Focus on Medical Education Department

The MLA highlighted a key strategic move: requesting the government to implement the hospital construction through the Medical Education Department instead of the Health and Family Welfare Department. This is intended to streamline the entire process of establishing the full medical college, ensuring the facilities—including labs, operation theatres, and other necessary infrastructure—adhere to the strict guidelines set by the Medical Council of India (MCI). The proposed site for the project is in Bannur.

Rai also took the opportunity to address political criticism, stating that the government has fulfilled its promise despite "apprehensions" and "mocking and criticising" from opposition parties who had failed to take similar initiatives when they were in power. "Chief Minister Siddaramaiah has kept his word," he added.

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