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.


Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
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. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 21,2025

malpe.jpg

Udupi: The Malpe Police have arrested two men from Uttar Pradesh for allegedly sharing classified information related to Indian Navy vessels with individuals in Pakistan, posing a serious threat to national security.

According to a complaint filed by the CEO of Udupi Cochin Shipyard, Malpe—an institution under the Union Ministry of Ports, Shipping and Waterways—the prime accused, Rohit (29), was working as an insulator through subcontractor M/S Shushma Marine Pvt Ltd. He had earlier served at Cochin Shipyard Limited in Kochi, Kerala, where naval ships are under construction.

Udupi SP Hariram Shankar said the accused had unlawfully shared, via WhatsApp, confidential identification numbers of Navy-related ships and other classified details while working in Kerala, allegedly for illegal gains.

After joining the Malpe shipyard unit, Rohit reportedly continued collecting sensitive information through a friend in Kochi and circulated it to unauthorised individuals, violating national security protocols and potentially endangering India’s sovereignty, unity, and integrity.

Based on the complaint, Malpe Police registered a case under Section 152 of the Bharatiya Nyaya Sanhita (BNS) and Sections 3 and 5 of the Official Secrets Act, 1923.

A police team led by Karkala Subdivision Assistant Superintendent of Police Harsha Priyamvada—along with PSI Anil Kumar D, ASI Harish, and PC Ravi Jadhav—conducted the investigation and arrested the two accused, identified as Rohit (29) and Santri (37), both residents of Sultanpur district, Uttar Pradesh.

The duo was produced before the court, which remanded them in judicial custody till December 3. Further investigation is in progress.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 24,2025

Mangaluru, Nov 24: The original departure time of 11.10 pm was a distant memory for scores of Dammam-bound passengers at Mangaluru International Airport last Friday night, as their Air India Express flight was abruptly cancelled at the eleventh hour, sparking hours of frustration and chaos.

The flight, IX 885, initially scheduled to depart at 11.10 pm on November 22, was subject to two back-to-back reschedules—first pushed to 11.45 pm and then significantly postponed to 1.40 am—before the final, crushing announcement of cancellation was made. For the travellers, many of whom are likely expatriate workers with tight schedules, the last-minute change marked the beginning of a distressing ordeal.

"There was no drinking water, no food, and absolutely no proper guidance. We were left stranded like refugees," complained a stranded passenger.

According to multiple passenger accounts, the airline's ground staff failed to provide adequate support or essential amenities following the cancellation. Complaints poured in about the total absence of drinking water, food provisions, and any reliable guidance from the carrier's representatives. Travellers alleged they were left stranded for a considerable period, with no immediate arrangements or clear communication offered regarding accommodation or alternative travel to send them back home.

The incident has highlighted serious concerns over the carrier's contingency planning and customer service protocols during flight disruptions at one of India's key international gateways. The airline is yet to issue a comprehensive statement addressing the alleged lapse in passenger care.
 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.