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
November 22,2025

Udupi, Nov 22: The Prime Minister’s Office (PMO) has officially confirmed Narendra Modi’s visit to Udupi on November 28 and shared his detailed schedule with the Karnataka chief secretary.

According to the itinerary, the Prime Minister will land at Mangaluru International Airport from Delhi at 11:05 am and depart for Udupi by helicopter at 11:10 am. He is expected to arrive at the Adi Udupi helipad at 11:35 am.

The earlier plan for a roadshow has been cancelled. Instead, PM Modi will proceed directly to Sri Krishna Math at 12 pm, where he will have darshan of Sri Krishna and address participants of the Laksha Kanta Geetha Gayana event.

The Prime Minister is scheduled to depart from the Adi Udupi helipad at 1:35 pm, returning to Mangaluru Airport before leaving for Goa at 2 pm.

The state administration has been directed to make all necessary arrangements for the visit.

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News Network
November 21,2025

Bengaluru, Nov 21: The Karnataka government is facing pressure to overhaul its employment system after a high-level Cabinet sub-committee recommended the complete phase-out of job outsourcing in government offices, boards, and corporations by March 2028. The move is aimed at tackling a systemic issue that has led to the potential violation of constitutional reservation policies and the exploitation of workers.

The Call for Systemic Change

With over three lakh vacant posts currently being filled through private agencies on an outsource, insource, or daily wage basis, the sub-committee highlighted a significant lapse. "As a result, reservations are not being followed as per the Constitution and state laws. It’s an urgent need to take serious steps to change the system. It has been recommended to completely stop the system of outsourcing by March 2028," the panel stated in a document.

The practice of outsourcing involves private companies hiring workers to perform duties for a government agency. Critics argue this model results in lesser salaries, a lack of social security benefits (otherwise available to permanent government employees), and a failure to adhere to the provisions of Articles 14 and 15 of the Constitution, which guarantee equality before the law and prohibit discrimination.

The 'Bidar Model' as a Stop-Gap Solution

To regulate the current mode of employment and reduce worker exploitation until the 2028 deadline, the government plans to establish workers’ services multi-purpose cooperative societies across all districts, following the successful "Bidar Model."

The Bidar District Services of Labour Multi-purpose Cooperative Society Ltd., which operates under the District Commissioner, is cited as a successful example of providing a measure of social security to outsourced staff. Labour Department officials argue this society ensures workers receive their due wages and statutory facilities like ESI (Employees' State Insurance) and PF (Provident Fund), in exchange for a 1% service fee collected from the employees.

legislative push and Priority Insourcing

The recommendations, led by the sub-committee headed by Law and Parliamentary Affairs Minister H K Patil, are set to be discussed at the next Cabinet meeting. The committee has proposed the introduction of the Karnataka Outsourced Employees (Regulation, Placement and Welfare) Bill 2025.

In a move addressing immediate concerns, Labour Minister Santosh Lad, a member of the sub-committee, has reportedly assured that steps will be taken over the next 2-3 years to insource workers in "life-threatening services" on a priority basis. This includes essential personnel like pourakarmikas (sanitation workers), drivers, electrical staff in the Energy Department, and Health Department staff handling contagious diseases. The transition aims to grant these workers the long-term security and benefits they currently lack under the outsourcing system. 

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News Network
November 26,2025

Mangaluru, Nov 26: Assembly Speaker and local MLA U.T. Khader has initiated a high-level push to resolve one of Mangaluru’s longest-standing traffic headaches: the narrow, high-density stretch of National Highway-66 between Nanthoor and Talapady.

He announced on Tuesday that a formal proposal has been submitted to the Union Ministry of Road Transport and Highways (MoRTH) seeking approval to prepare a Detailed Project Report (DPR) for the widening of this crucial corridor.

The plan specifically aims to expand the existing 45-meter road width to a full 60 meters, coupled with the construction of dedicated service roads. Khader highlighted that land for a 60-meter highway was originally acquired during the initial four-laning project, but only 45 meters were developed, leading to a perpetual bottleneck.

"With vehicle density rising sharply, the expansion has become unavoidable," Khader stated, stressing that the upgrade is essential for ensuring smoother traffic flow and improving safety at the city's main entry and exit points.

The stretch between Nanthoor and Talapady is a vital link on the busy Kochi-Panvel coastal highway and connects to major city junctions. The move to utilize the previously acquired land for the full 60-meter width is seen as a necessary measure to catch up with the region's rapid vehicular growth and prevent further traffic gridlocks.

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