Orissa Matters

POWER PROBLEM: WHAT THE HOUSE COMMITTEE COULD NOT SEE

Subhas Chandra Pattanayak

“Although Odisha is the first state to go for power sector reforms and is the only state where both transmission and distribution of electricity are privatized, yet, the achievements of the state availing uniform and qualitative power sector for a common man is not significant”, observes the Orissa Legislative Assembly Standing Committee formed to oversee the Department of Energy.

But it seems the House Committee is not aware of how the reform programme has been sabotaged.

In my column in Orissa’s mainstream broadsheet ‘Sambad’ I had exposed how payola had played a propellant role in Biju Patnaik’s decision to privatize power sector of Orissa, with specific stress on shenanigans involving AES and the foreign pack of advisors. In post Biju era, I had also exposed the rampant corruption, a part of which was being played by one Mahendra Kumar, the then Director, Commerce. Following the exposure, Mahendra Kumar had to go, but the anti-people activities of the new set-up went on, sufficiently as was being greased the relevant joints in the State secretariat.

Mr. Bishnu Das, Chairman of the Committee has not hesitated to transmit to the public that the Government should realize the futility of privatization and get rid of the private Distribution Companies (DISCOMs) in order to ward off anarchy in power sector. This idea may not stand the test on the matrix of Electricity Act, 2003. But there is no problem for the Standing Committee to probe and for the Government to act in the matter of loss caused to the State by way of subterfuge following privatization.

On 3rd of this month, AES has signed an MoU with Government of Chhatisgarh for setting up of a coal fired 1000 MW Project with an investment of Rs.5400 crores through AES India Pvt. Ltd. on Build, Own and Operate (BOO) basis. Upon operation, the proposed plant of AES will work as a Merchant Plant and would supply power to the power deficit States of the country.

In the light of observations of an astute power engineer, this is a death blow to Govt. of Orissa.

AES India holds 49% share in Ib Thermal Power Station of Orissa Power Generation Corporation along with management control since January 1999. It had earlier agreed to undertake installation of Unit-3 and 4 of ITPS at an estimated cost of Rs.1706 crore. By performing ‘Bhumi Puja’ for the purpose on 23rd August, 2004 at the request of AES India Chief Minister Naveen Patnaik tried to renew its credibility. Had he shown equal zeal for recovery of the dues claimed against AES, the GRIDCO could have gained a sum of Rs.645 crores. It is worth noting that AES India has already reaped the Dividend amount of Rs.449.22 crores by the FY 2004-05 from ITPS, whereas purchasing 51% of CESCO in September 1999, it had fled away on 27.08.2001, in the process, cheating GRIDCO of Rs.645 crores against which the later has lodged a claim on 08.02.2003. It is sad that the State Government does not show appropriate interest to defeat AES mischief.

This Company had earlier signed an M.O.U. with Govt. of Orissa and OSEB in 1992 for installation of 2×250 MW Thermal Plant at Ib Thermal Power Station. It has obtained all statutory clearances under First Track Power Project Scheme and concluded amended PPA with GRIDCO as successor to OSEB on 31.03.1997 for an investment of Rs.2369 crores. But this project has deliberately been kept dormant.

Look at it from any angle as you like, it would transpire that AES India is playing hide and seek with the people of Orissa. In such a situation a responsible and alert Government should have taken over the 49% share of OPGC from AES and should have assigned the Project to other developers showing Expression of Interest (EOI). But, by conducting ‘Bhumi Puja’, Chief Minister Naveen Patnaik has indicated that he can side with fraudulent players, happen what may to the simple people of Orissa.

The Standing Committee has legitimate scope to read this mischief. Let us hope against hope that it acts.

However, AES India is not by itself the entirety of the fraud that has affected Orissa’s power sector. A section of IAS officers and their cronies in sensitive places of administration have forced Orissa into a condition of recurring loss, in order only keep alive a scope for AES to benefit from power crisis. Let us go to the point.

In 1997, NTPC requested GRIDCO to avail 700 MW power at the rate of 35% of 2000 MW from their Talcher Super Thermal Power Project Stage-II (TSTPS Stage-II) at Kaniha near Talcher.

Senior IAS officer M.Y.Rao was then the CMD of GRIDCO. He constituted a committee comprising the aforesaid Mahendra Kumar, the then Director (Commercial), Sri Rama Ballav Mishra, the then Director (Finance) and Sri B.C. Jena, the then Director (Transmission and Distribution) of GRIDCO, who is presently a Member of Orissa Electricity Regulatory Commission, to decide whether GRIDCO should avail this Power.

This Committee decided not to avail the 700 MW power offered by NTPC under the plea that the exact Tariff and exact Schedule date of completion of NTPC Units were not available.

Whether the plea was cooked up keeping in mind the interest of Private Developers like AES and KPCL etc. or not can be ascertained by a body like the Standing Committee of the Assembly.

But, it needs no specialization to understand that the above recommendation of the Committee debarred Orissa from gaining from the NTPC offer.

As the recommendation was adopted by Rao, GRIDCO had to intimate NTPC that it was not to avail 700 MW Power from TSTPS Stage-II. Consequent upon this, NTPC allotted this 35% (700 MW) power to Southern Region constituents like Andhra, Tamilnadu, Karnatak etc.on the premise of Infirm power at the rate of 50 Paisa/KWh and Commercial power at the rate of 160 P/KWh.

Date wise all the four Units of TSTPS Stage-II beginning from Unit-III entered into commercial operation with effect from 01 Aug 2003, 01 March 2004, 01 November 2004 and 01 Aug.2005 respectively.

It means, due to the suicidal recommendation of the Committee, Orissa lost procurement of power to the tune of 2453 MU (500 MW x 0.8 x 0.35 x 8.76 x 2) during 2003-05 at the cost of 50 P/KWh. If it would have traded the same infirm power, it would have done so at a prevailing market rate of 250 P/KWh. Money wise, it would have given a gain worth Rs.490 Crores to GRIDCO. Similarly, after commercial operation, Orissa would have gained 300 Paise on each Unit (Trading value 460 P/Unit / Cost of generation 160 P./Unit).

A mere mathematical calculation (700×0.8×8.76×3) suffices to say that the financial loss to Orissa on account of the recommendation of the Committee constituted by Rao and the cold calculated decision by the two IAS officers at the helm of affairs, one at GRIDCO and the other in the department of energy in Orissa’s Secretariat rejecting the offer of NTPC is not less than Rs.1470 Crores per annum.

The loss to our State is not limited to the above evidence. The lackadaisical manner in which the State is now run has been playing havoc with the power sector.

It is the policy of Govt. of India that the home State should get 12% free Hydel power from the Projects undertaken by Central Government Power Companies like NHPC, NEEPCO etc. Similarly, 10% of thermal power is given as home State quota from all NTPC Stations located in that State.

Orissa is in such hands that the Government is not demanding or claiming the legitimate share of 10% of generated power as Home State Quota from TSTPS Stage-II which is located in Orissa and thereby is loosing Rs.420 Crores over 200 MW annually (calculated at 200×0.8×8.76×3) considering the prevalent trading price of 460 P/Unit.

Standing Committee of the Assembly could not see this scenario.

But it would be somewhat rectifying the mistake if the Assembly, while taking up energy budget, pays attention to the precarious position of power that is now menacingly threatening Orissa.

Although endowed with 23% of the Country’s power grade coal and 10% of annual surface water flow, Orissa will fall far short of the minimum requirement of power in 2007. I have already shown reasons to say that it portends a power-famine from the year 2009 onwards.

If the Assembly can compel the Government to constitute a Task Force in the pattern of War Council functioning during war time to go for and start immediately 3 to 4 Super and Mega Thermal Power Projects and at least one Ultra Mega Thermal Project (4000 MW), the dark days could be avoided.

But can it? Are there enough members in the treasury bench to drag out their Government from its bureaucratic cocoon into the world of activities, in interest of the people?

I leave the answer to whosoever watches the Assembly when energy demand is taken up.

POWER CUT A MUST IF GOVERNMENT FAILS TO WAKE UP

Subhas Chandra Pattanayak

True, till date Orissa is trading surplus power through licensed power traders like Power Trading Corporation of India Ltd (PTCL) and NTPC Vidyut Vyapar Nigam Ltd (NVVNL), howsoever small be the quantity.

But the scenario will soon change and power cut would be an unavoidable must from next year. I have hinted out, how by the end of this decade, we will fall a prey to power famine, if, without prioritizing power generation, the current idiocy of distribution of mines to private industries, which, when set up, would sure need mega consumption of power, continues. I have also shown in that article, based on official calculation, how 3394MW of power would be necessary to energize 46000 villages of Orissa under Natioal Rural Electrification Policies by 2009 over and above the 4391MW minimum projected need of Industries.

The Orissa Electricity Regulatory Commission, empowered under Section 86(20(IV) of Electricity Act, 2003 to advise the State Government on urgent issues concerning generation, transmission, distribution and trading of electricity, had warned the State Government of serious dislocation in power sector unless timely actions are taken.

In D.O. letter No.CHP/2005/812 of May 20, 2005 addressed to R. N. Bohidar, Additional Chief Secretary-cum-Principal Secretary to Government in the department of Energy, D.C.Sahoo, Chairman of the Commission, had noted, From the analysis of power projections, it is revealed that from 2007-08 onwards, even with good monsoon and full hydro availability, the state will face deficit in power supply unless additional capacity is generated to meet the demand. As you are aware, a green field project for thermal capacity addition will take about 4/5 years, whereas extension in existing power stations, where land and other infrastructural facilities are available, the time span may vary from 30 months to 36 months. We have barely three years left at our disposal to address the issue of new generation capacity addition.

Thus saying, the OERC Chairman had cautioned the Government that In the event of monsoon failure, the power availability will drastically go down leading to shortage of power triggering load shedding. There is every likelihood of redistribution of Central Sector power already allocated to the State/GRIDCO. Such an apprehension is borne out of the fact that a majority of States are plagued by huge deficit of power. The Government of India may reduce the allocation of power to our State and reallocate it to some of the power deficit States. This unwarranted measure, as and when comes through, needs to be resisted tooth and nail at the appropriate level, he had stressed.

Whether the Government that could not resist stealing away of the National Institute of Science by Bengalis from Bhubaneswar to Kolkata can resist diversion of power to other States at the time of need is a question the future may answer; but the OERC Chairman did not stop at this point. As the guardian of power management in Orissa, he suggested the following urgent steps to be taken to meet the critical situation as mentioned above.

Firstly he had advised To start construction of Unit 3 and 4 in Ib Valley power station area where land and infrastructural facilities are available. Secondly he had asked the Government to issue notice to M/s Kalinga Power Corporation, an IPP to start construction of the two 250MW units of their project at Duburi for which land and other facilities are available. Thirdly, the Government must Issue notice also to M/s AES who are supposed to construct Unit 5 & 6 as an IPP to take urgent steps in that regard, he had underlined. The OERC chiefs further advice was Urge upon CPPs like NALCO, ICCL, RSP etc to augment capacity on a time bound basis.

Emphasizing on implementation of Electricity Vision 2010 prepared by the State Government, the OERC Chairman had asked the Government to persuade and cajole the developers to commence construction activities in already identified areas like Hirma, Naraj as envisaged n Fuel Map of India / Draft Electricity Plan.

Focusing on inadequacy of transmission capacity and need to complete the ongoing projects, the OERC Chief had noted, The ongoing transmission projects financed through World Bank need to be completed on war footing basis to ensure steady power supply to various parts of the State. Observing that There is widespread interruption, low voltage, mainly in western part of the State, he had said that this was due to non-completion of 220 KV Bhubaneswar-Burla line, Burla-Bolangir 220 KV line including Sub-Stations. Besides, he had pointed out, Evacuation of power from Ib has been affected due to non-completion of 400 KV line from Ib to Meramundali. He had warned the Government that power supply to industries in Duburi will be seriously jeopardized unless the Meramundali-Duburi 400 KV line along with 400 KV sub-station at Duburi is completed soon. Bhubaneswar, Cuttack, Puri, Khurda and Paradeep will also face power supply problem because of delay in completion of 400 KV sub-station works at Meramundali and Mendhasal and non-completion of Narendrapur-Chandaka 220 KV line and Duburi-Paradeep 220 KV line.

But the State has fallen in such hands, that the timely warning and advices of OERC went unheeded to.

If the Government fails to wake up, it is impossible to avoid power cuts.

KANIKA ANCHORAGE SHOWS HOW INCOMPETENT IS ORISSA GOVT.

Subhas Chandra Pattanayak

That Orissa Government is incompetent needs no proof. Nasty casting of Bengali eyes on Kanika Sand Anchorage taking advantage of Orissa being run by a lingua-non-Oriya Chief Minister has established it without any ambiguity.

I had put it on records in these pages on November 01, 2005.

If you are an Oriya or if you are an Indian without any ill-feeling for Orissa or anybody belonging to any part of the globe who believes in peaceful living of man within his native territory without being betrayed by his own government, you should visit that page to know how a Government run by a man who does not know and belong to the mother-tongue of the people of Orissa has provided a congenial climate to sections of Bengali chauvinists who, in order to overcome inferiority complex lying dormant in their subconscious, have been searching for newer avenues to misappropriate anything belonging to the Oriyas, be that cultural or geographical.

In that write-up, I had cited how Kanika Anchorage was and is an integrated and inseparable part of Orissa.

Till the Bengalis, who were native servants of the British, used their yeomanhood to misguide their masters for using methods of subterfuge against Orissa’s maritime excellence, Kanika was a famous shipbuilding center. (Report of A. Sterling, 1846, p.38)

E.Watson, 4th Judge, Calcutta Court of Circuit, in his report dated 3 may, 1817 to the secretary to Government in the Judicial Department, had mention of the matchless ships of Orissa. They were “by far the best that I ever saw in any part of India”, he had said.

These ships were being built at Kanika anchorage, where, even today, as mentioned in the admiralty chat, a depth of 15 mtrs, (according to KPT estimation 23 mtrs) is available which, being in the sheltered zone, remains “calm during southwest monsoon”.

In The “Despatches, 1686-1692” at page 24, it is noted, “Kanika road afforded a convenient base for loading and unloading of ships. In 1687, the Dutch carried out a good trade in boiled rice at this road. They exported this commodity to Maldive and Ceylone. Afterwards the English traders also showed inclination to enter into the rice trade at Kanika with the assistance of the Balasor merchants”.

There is no better a place than the Kanika Anchorage for shipbuilding, transloading and other maritime activities. Therefore, the Bengalis have been conspiring to usurp it up.

And, Naveen Patnaik government has been helping them.

When Minister of State for Commerce and Transport Jay Narayan Mishra, in a recent reply to Netrananda Mallik of Congress, has informed the Assembly that the Director General of Shipping, Government of India, has been moved to send a survey team to determine ownership of the “sand Island”, he has served just the mischievous purpose of the Bengalis. By requiring the DG of Shipping to determine the “ownership” of this unique property of Orissa, Mishra has proved that the Government he belongs to has no ability or acumen to protect the interest of Orissa. By its act, (Is the non-Oriya Secretary of Commerce and Transport responsible for this?), the Naveen Patnaik Government has kept on records that it recognizes the locus standi of Bengalis to raise a ‘dispute’ over Kanika Sand Island. Nothing could be more harmful for Orissa than this.

Minister of Revenue Manmohan Samal, in reply to questions during debate over his departmental budget has of course boasted of protecting Orissa territory “at any cost”.

But is the government serious about it?

Going through official records, one does not find any reason to rely upon Samal. The State Government has framed a Port Policy aimed at establishing a single window agency to be “vested with authority and powers to plan, direct and implement the maritime development in the State with private sector participation”. In the policy document, it has identified 12 “Greenfield sites for development as minor ports” which would be of immense use “to decongest the existing major ports on the eastern coastal region so as to cater to the needs of increasing volumes of international and domestic traffic”. They are: (1) Gopalpur in the district of Ganjam, (2) Dhamara (Bhadrak), (3) Palur (Ganjam), (4) Bali Harachandi (Puri), (5) Astaranga (Puri), (6) Bahuda Muhana (Ganjam), (7) Chudamani (Ganjam), (8) Inchuri, (9) Chandipur, (10) Subarnarekha Mouth or Kirtania and (11) Bahabalapur (Balasore) and (12) Jatadhar Muhan (Jagatsingpur).

Is there any mention of Kanika Sand Island / Anchorage in this list? I had asked this in my earlier discussion. Attention of the Chief Minister as well as the Chief Secretary was drawn to this discussion. And to this lacuna. Has the government rectified the mistake that it has made by omitting the name of Kanika? No. Not so far.

Kanika is crying helplessly.

I am inclined to infer that my motherland has fallen in incompetent hands.

OLA ALLOWS REVENUE DEMAND THOUGH INERTNESS NOTED

Subhas Chandra Pattanayak

Orissa Legislative Assembly on March 10 allowed expenditure of Rs.1017.60 crore proposed by Revenue department notwithstanding its continuous failure in utilizing funds allocated.

Initiating discussion on the budget proposals, Congress member Dr. Nrusingha Sahu pointed out that the BJD-BJP coalition government has shown scant commitment to carry forward the state and therefore budgetary allocations are not utilized and funds remain dormant.

Giving statistics of expenditure in support of his observation Dr. Sahu said, out of Rs.922.75 crores in Revenue budget for 2000-01, a sum of Rs.728.12 crore was utilized.

Similarly Rs. 765.67 crore was utilized out of Rs. 1,112.45 crore allotted in 2001-02, Rs.659.47 crore utilized out of Rs.1,243.17 crore in 2002-03, Rs.855.93 crore utilized from Rs.1,362.33 crore allotted in 2003-04 and around half of the allocation of Rs.968.93 crore allotted in 2004-05.

As the government has no ability to utilize the funds placed at its disposal, there is no justification in its demand for more money, Dr. Sahu said.

BJP member Aswini patra, Brundabana Majhi, BJD member Chaianya Pr. Majhi, Bikram Keshari Berma, Jayadev Jena and Sadan Nayak of Congress were amongst participants in the dbate.

Minister Manmohan Samal, in replying to the debate, highlighted the programme for issuance of land passbooks to farmers of the state and revealed that survey of holdings in the KBK area would be taken up with the funds provided for the purpose by the central government with target for completion within six years.

Mr. Niranjan Patnaik of Congress asked the Minister to react to the recommendation of the standing committee while replying to the budget discussion.

The Assembly has adopted a new system of vetting Budget on the basis of study of budgetary proposals by Standing Committees constituted by the House for every department and this was the reason of intermission after the Budget was moved. But the Revenue Minister kept mum on observation and recommendations of the standing committee. His pleas that the department could not find enough time to study the standing committee report provoked the deputy leader of Opposition Mr. Narasingh Mishra to comment that the Minister should have better deferred the debate than rendering the standing committee report inconsequential. It is a matter of regret that the Minister has not understood the importance of the standing committee, he observed.

ASSEMBLY STONEWALLED, COMMITTEE FORMED OVER ULTRA-POLICING

Subhas Chandra Pattanayak

Orissa Assembly, continuously stonewalled, had to adjourn the forenoon sitting without transacting any business as the Opposition took police insult to Congress MLA Padma Lochan Panda as deliberate and contemptuous against the House besides being a breech of privilege.

Yesterday, i.e. March 9, 2006, in the afternoon at 5 p.m., Mr. Panda, while entering into the Assembly premises in a two-wheeler, was intercepted by surveillant police sub-inspector P. K. Tripathy and was physically obstructed from proceeding as he could not produce his identity card on demand. The police officer did not relent in spite of the MLA telling him that inadvertently he had left the Id card at his residence and his identity may be ascertained by calling any of the Assembly staff to the spot for verification of his identity. But the officer went on offending him with obnoxious words and kept him restrained till he was rescued by MLA Arun De.

The sitting today began to expression of anxiety over the issue that stonewalled all other business till the afternoon. Leader of Opposition J.B.Patnaik attributed the police arrogance to the cocky climate created by judo training to House guards. How can the Opposition function if members thereof are cowed down like this? He asked. OGP member Arun De, an eye witness to what had happened in the preceding evening, described the police action as unprecedented and uncivilized. Even Raghunath Mohanty, seasoned member of the treasury bench, expressed dismay over ultra-policing. Chief Minister tried to apprise the House of the administrative steps, including suspension, taken against Thripathy and two members of the watch & ward staff, but he was jeered down.

When the House resumed in the afternoon, the Speaker informed the members of constitution of a special committee under his own presidentship to determine remedial measures. Opposition refused to take part in that committee, but participated in proceedings that paved the way for Revenue budget.