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BJP flays Reliance-Salgaoncar power project

Sandesh Prabhudesai in Panaji

The controversy over the supply of power has been raked up once again in Goa with the government striking a new deal with the Reliance-Salgaoncar Power Ltd, a joint venture of Reliance Industries Dattaraj Salgaoncar, son-in-law of Dhirubhai Ambani

The local Bharatiya Janata Party suspects foul play in the signing of two consecutive power purchase agreements, initially for an open-cycle and late the combined-cycle, while most of the opposition parties in the state are keeping quiet despite the high tariff charged by the Reliance-Salgaoncar. The revised power purchase agreement (PPA) was signed this month while the first PPA was signed in January last for a 40 mw project worth Rs 800 million to be set up at Sancoale, around 10 kilometres from Vasco town,which has now been challenged in the high court.

The revised PPA is for the combined cycle that will would generate an additional 10 mw, which the RSPL will be allowed to sell to new industrial units. The change was made following the Centre’s stand to supply naphtha only to combined cycle projects.

"It is a fraud on the people of Goa," cries Manohar Parrikar, the BJP legislator and the state general secretary, who fears that Dhirubhai Ambai, in collusion with his mine-owning son-in-law, will monopolise the Goan infrastructural sector in a phased manner.

Besides generating power, Goan Power Minister Mauvin Godinho has already announced that transmission and distribution rights will also be awarded to the RSPL. They have also been quoted for Goa’s biggest water treatment plant coming up in south Goa.

Though the coastal state is allocated 406 mw of power from the National Thermal Power Corporation, only 310 MW mw is wheeled in with 26 per cent T&D losses, rated highest in the country, due to an inadequate and poor transmission system.

Rather than upgrade the wheeling capacity, Godinho managed to strike a deal with the RSPL for a 40 mw project, raising a hue and cry over poor quality power and inadequate supply to the developing industrial state.

Parrikar claimed that he had carried out a study which reveals that over the past eight years, only two per cent of the additional power generated was consumed in the non-industrial sector. Hiking power tariffs for industry can earn sufficient revenue for Goa to upgrade its wheeling substation at Ponda to generate 96 mw more power at NTPC rates.

"While the Goan consumer is today paying 80 paise per unit, the minipower project would result in hiking the tariff to Rs 2.02. Also, Goa does not require such a project," states Parrikar, alleging that his study has not been countered by the authorities till date.

The private project would benefit only the Mormugao taluka, which consists of the Mormugao Port Trust, industries like Zuari Agro chemicals, Goa Shipyard and several, multinational companies located at the Verna Electronic City.

The rest of the 10 subdistricts, including the coastal belt, however will have to pay more than double the present tariff for the same inferior quality of power they are receiving today, claims Parrikar.

While raising all these issues, Parrikar has alleged foul play in the signing of the revised PPA with RSPL, saying that Tata Electric Companies had quoted Rs 1.96 for the combined cycle in Sancoale.