KPCL tenders on mini hydel projects run into rough weather

Plaint before Upalokayukta claims blacklisted firms being favoured

A complaint has been filed before the Upalokayukta claiming irregularities in the tender notification called by the Karnataka Power Corporation Limited (KPCL) to renovate four mini hydel projects in the State.

The complaint, filed by Hydel Energy Developers Association, states that the four mini hydel projects at Mallapur, Sirwar, Ganekal and Kalmala had been remained defunct due to the initial defects in the machineries. Though the two companies - Boving Fouress Pvt Ltd and BHEL - were blacklisted for supplying defective machineries, the same companies have been chosen for issuing consent letters to the bidders.

The tender process for these four mini hydel projects started in 1990. The tenders for Kalmala called in 1990, Sirwar in 1992, Mallapur and Ganekal in 1993 and Unit-2 at Mallapur in 1994. The State was expecting the production of power to the tune of 10.75 MW from these projects.

The complaint stated that since last 20 years these hydel projects have become defunct and there was no power generation and the units were declared as sick.

Despite facing severe problems, specifically relating to equipment like governor, Runner Mechanism and gear box, the latest tender notification dated July 16, 2015 for leasing projects for renovation, has added a strange eligibility.

The condition clause states, “The bidder will obtain a consent letter from the respective original equipment manufacturer stating that the original equipment manufacturer is ready to work with the bidder towards the renovation of the hydel stations.”

This is not all. The bidder will also have to submit an affidavit of undertaking that he will have to enter into a contract with the original equipment manufacturer for the purpose of renovation.

The complainant stated that there are about 27 other leading manufacturers of similar equipment in the country. However, KPCL is not ready to call an open tender for the renovation work.

Upalokayukta Justice Subhash B Adi has directed the KPCL officials to submit their reply. “The complainant states that tender conditions are tailor-made to suit a particular company. It is alleged that there is a clear understanding between KPCL authorities as well as the manufacturers. The queries made in the complaint require immediate clarification from the KPCL,” he said.

The Upalokayukta has directed managing director and chief engineer KPCL to submit response on September 16. The tenders are likely to be opened on September 18.