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The State government had provided an exemption to KPCL under Section 4G of the Karnataka Transparency in Public Procurement Act, 1999 to procure coal directly from Minerals and Metals Trading Corporation (MMTC) for 2 lakh tonnes of coal and later an additional 4 lakh tonnes of coal.
The second exemption had been challenged in the Court by Knowledge Infrastructure Systems, saying that it was flouting the norms. The single bench which had observed that the Government should have gone in accordance to the KTTP Act, had quashed the exemption and excluded supplies.
This order was challenged by the government which stated that the exemption was made as the State was in the grip of a severe power crisis and the supplies had to be procured quickly. The matter has been posted for further hearing.
PIL on thermal plant
The HC on Friday ordered issue of notice to Union and State government, KPCL and others, following a PIL challenging the setting up of the coal fired Yeramaras Thermal Power Plant based on super critical technology in Raichur. Nagabhushan and others have contended that the two units of 800 MW each were not required at Yeramaras, as the Raichur Thermal Power Station situated nearby already had seven, with an eighth to go functional, soon.