DVC – from Dust unto Ash
By Rajib Maitra
1000 MWs of power ready for commissioning lying dormant in the ashes of DVC apathy? Can a mere contractor hold a Corporation it serves to ransom? Read how the Nation pays for the wiles of a few.
Ash. It has no commercial value, yet, it is this ash that is promising to lead West Bengal and Jharkhand’s economic lifeline the Damodar Valley Corporation (DVC) to a dusty death.
It all started when a Kolkata based contractor became desperate to break into the ash handling business of DVC. Such has been the desperation that even a former Chairman – Mr. Subrata Biswas, IAS, had to become a sacrificial goat. Even more alarming is the fact that DVC is unable to commercially run a power project of 1000 MW (500 X 2) which is otherwise ready. Power, that was earmarked for use in the capital city of New Delhi, not to mention the financial burden on DVC itself. The funny fact is that the contractor for whom DVC is in such dire straits continues to jointly work as a coal transporter in the Mejhia Thermal Power Station (MTPS) of DVC.
DVC has four power plants – two ( Durgapur and Mejhia) in West Bengal and two ( Bokaro and Chandrapura) in Jharkhand with a total generating capacity of 2710 MWs. Thermal power generation results in the generation of huge amounts of ash which is first collected in the concerned ash pond from where it is transported and dumped in nearby abandoned coal mines. DVC spends between Rs 140 and Rs 170 crores per annum evacuating about 60 cuM of ash.
Looking Back
Before we venture more, one has to understand :
DVC started outsourcing Ash handling way back in the 1990’s. Consequently, during “works & supply tender committee”, level 1 (driven by higher official of HQ) meeting, in respect of tender for the work of evacuation of ash from ash pond site of BTPS and CTPS, held on 1.10.2001, it was decided to constitute a committee. In April 2002, the said committee submitted its report with a recommended model of NIT for similar tender along with QR qualification. Another committee was constituted in 2003 which stated “ash as equivalent soil or earth filling”. Those were the days of early tightening of pollution control norms and not to be left out, the then Secretary of DVC Mr A.K.Basu dictated in 2004-5 that ash handling should not be mixed with handling of coal or soil as ash is of much more environmental sensitivity. Thus, in July 2006 a committee was again constituted to frame a realistic estimate of the total quantity with the scope of defining the word “similar work”. The committee submitted its report and recommended that the “similar work” may be considered as evacuation and dumping of ash in a thermal power station. In April 2007, DVC directed that the bidders must have eligibility criterion for ash transportation tender of experience in pond ash loading, carriage and disposal.
Dare Devil Desperation
The Kolkata based contractor desperate to break into this business goes by the name of BLA Projects Pvt. Limited (formerly Banowari Lal Agarwalla Pvt. Ltd.). According to DVC sources, the contractor engaged in ash handling in MTPS and DTPS is one CISC which is owned by the elder brother of the owner of BLA. In a repeat, albeit on a much smaller scale, of the Ambani saga, these two companies too came into being after the family business was split. The problem started when the ash handling credential went the CISC way which technically sealed the fate of BLA as far as ash handling goes and was left holding the earth filling and embankment credentials. According to sources this is the crux of the matter – the beginning of all troubles. However, the funny fact remains that this sibling rivalry does not extend to MTPS where CISC and BLA, quoting the same rate, are transporting coal for ages.
Let us now take a look as to what this sibling rivalry has cost DVC. Based on the recommended QR of the Committee set up in April 2007, DVC started the tendering process for MTPS. One Manoj Agarwal challenging the “QR” and the definition of “Similar Work” set by DVC went to the Calcutta High Court. DVC through an affidavit stood its ground, which the Hon. Court accepted stating that there was no reason to inter fare because it is for the Corporation to decide the eligibility of bidders and the eligibility conditions.
In a similar tender called by DVC for DTPS, BLA moved a writ petition (No 945 (W) of 2008) on similar grounds just before the processing of the work order. Here too, the court did not allow any stay order and opined that contract was to be awarded because failing to remove ash would have led to the violation of pollution control norms. The above court rulings clearly point out the fact that DVC was correct although in its assessment.
BLA was therefore desperate to add the terms “earth work” and “filling” so as to become eligible. According to DVC insiders, it is alleged that BLA influenced the CVO to have a committee constituted to clarify the definition of the term “similar work”. Which was duly constituted in January 2008. It is further alleged that it was primarily under the influence of the CVO, this committee reexamined and defined the term “similar work” as “ash / earth work in embankment / filling”. In fact it was a 180 degree turn for DVC from its own stated stance in the High Court.
The then Chairman of DVC, Mr Ashim Burman, IAS, who started 4 new projects in DVC valley ie MTPS 2X500 MW, Koderma 2x 500 MW, Raghunathpur 2x600 MW, and DSTPS 2X500 MW, called back the concerned file and on the very same day, 25th February 2008, advised to relook its decision with reference to certain points in his note. The Chairman wrote “ … we must be legally tenable and must not have far reaching adverse impact in other areas of similar and different walks …. We must not be self defining and must be rational and reasonable”. He also wrote “… in case we redefine QR, so what stand we are going to take in High Court?” He went on to end the note with a further clear warning “ …we must not do anything which will send wrong signals in our effort in taking DVC to new heights”.
Following this note, the Level 1 tender committee was reconstituted and a review committee headed by the then Secretary Mr Subroto Biswas, IAS was formed. Insiders say that even in the review committee meeting, the BLA interest was put forward by the CVO. Still, only “ash handling” was recognized as the only criterion.
Operation Change the Chairman
The mantle of the chairmanship of DVC was passed on to Mr Subroto Biswas in due course. Universally respected as a coveted “third eye” (an IIT and IIM alumnus and an IAS) he was known for his non compromising honesty. He continued to follow the precedents set down by Ashim Burman vis a vis ash handling. According to sources in the know, BLA used the then CVO of the Ministry of Power, Mr. Devender Singh, IAS to pressurize the Chairman to act in its favour. When he could not be pressurized to submission, BLA filed a complaint primarily against Mr. Subrata Biswas with the CBI. The CBI enquiry coupled with the pressure created by the conspirators, Mr. Biswas was repatriated to his domicile cadre.
The vacancy created by the departure of Subrata Biswas was filled in, by none other than Mr. Devender Singh. Whose first job as the Chairman was to change the NIT to suit the needs of you know whom. Again, earth work in embankment / filling became similar work as ash handling. And based on this, DVC called for fresh tenders for all four plants in September-October 2010. The NIT’s had so many loopholes, that already a dozen or so court cases have already been filed where in every case that Hon High Court has dictated that the tendering process may continue but DVC cannot initiate the work order till the disposal of the respective cases. A classic case of being holed in the self created loop holes.
Departure, Devender and DVC
Devender Singh has since gone with the wind, but DVC continues to wriggle in the loophole of his creation. Two new units of MTPS (500 MWs each, units 7 & 8) cannot be started even after completion only because of this contentious issue of ash clearance. The price bid for Mejia which was opened recently clearly points at collusion as BLA has bid the same rate as two more parties.
A senior engineer on conditions of anonymity said “the rates quoted are abnormally low and are not performable. In case of failure of the parties to deliver, the time and money spent to go through the process of blacklisting and re tendering will not only push DVC to the brink but will also create untold loss to the nation as our very generation will have to be cut back to meet the situation.”
Endgame
Surprisingly, even while taking part in the tendering process, BLA has written a letter to the Secretary on March 17th 2011, in which it has canvassed about its capabilities. This is a clear case of un ethicality apart from being without precedence. DVC corridors are awash with whispers of a top officer having taken the vow to get BLA into the game – even at the cost of causing untold harm to the Nation.
The Lokpal Cometh
Since then Mr. R N Sen has taken over as the new Chairman of DVC. He brings to DVC his rich experience of having worked with distinction in NTPC. Loyal DVC officers are confident that he will take the right decision (right for DVC, that is, and not that of any contractor) in this contentious issue of ash handling.
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