Telangana CM says his Govt committed to bring out ‘irregularities’ committed by BRS in power deals and projects  

Telangana Chief Minister Revanth Reddy vows to uncover financial irregularities of previous BRS Government through judicial commission probe.

Continuing his tirade against the previous Bharat Rashtra Samithi (BRS) Government, Chief Minister A. Revanth Reddy has categorically said that his Government is committed to bring out the ‘irregularities’ committed by the previous Government and the quantum of public money that has been ‘swindled’ by those close to powers that be.

The Government has therefore constituted a judicial commission to probe into the irregularities pertaining to Power Purchase Agreements with Chhattisgarh Government, and Yadadri and Bhadradri power projects. “The new chairman for the commission will be announced by this evening,” he said referring to Supreme Court’s direction to replace retired judge L. Narasimha Reddy in response to a case filed by BRS president K. Chandrasekhar Rao seeking scrapping of the commission.

The Chief Minister was responding to the claims made by BRS member and former Energy Minister G. Jagadishwar Reddy during the heated debate on demands for grants in the Legislative Assembly on Monday. Mr. Jagadishwar Reddy asserted that the party approached the Supreme Court after the commission chairman revealed his intent (against the BRS president) in the course of a press conference.

Mr. Revanth Reddy refuted the charge claiming that the BRS president sought scrapping of the commission as he sensed the fall out of the outcome of the commission’s probe. “The Supreme Court agreed for the change of the chairman after the Government gave its consent. But the High Court as well as the Apex Court upheld the Government’s decision to probe into the lapses,” he said adding Mr. Jagdish Reddy was trying to mislead the House on the court’s verdict which could attract prosecution.

Elaborating on the timeline for Yadadri and Bhadradri thermal power projects, he said the then Government entrusted the power project installation works to public sector entity BHEL on nomination basis. The remaining civil works involving huge amounts were handed over to those close to the BRS leadership. The BHEL which participated in bids called by Jharkhand Government quoted 18 per cent less for power plants with super critical technology. “Given the magnitude of finance involved in the project, the State could have saved around ₹9,000 crore,” the Chief Minister said asserting that all the civil works were given to benamis of top leaders and MLAs who switched loyalties to the BRS.

At a time when super critical technology was available, the BRS Government opted for sub critical technology in the lure of commissions. The Bhadradri power project, for instance, started with an initial estimate of ₹7,290 crore in 2015 with an assurance of completion within two years. But works on the project were delayed resulting in coast escalation up to ₹10,000 crore at ₹9.73 crore per Megawatt. The project had no environmental clearances but the Government’s decisions had enabled cost escalation by around 40 per cent.

The same was the case with Yadadri power plant which was started with an initial estimate of ₹25,099 crore in 2015 with project completion projected in 2021. The cost of the project escalated to ₹34,542 crore in the meantime and the project would take another two years for completion. “There is scope for cost escalation by another ₹5,000 crore to ₹6,000 crore more and thus the per MW cost would be more than ₹10 crore,” he said.