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ALL INDIA POWER ENGINEERS' FEDERATION

Chief Patron

Er. PadamjitSingh

45, Ranjit Bagh, Opp.Modi Mandir, Patiala 147 001

No: AIPEF/CEA Dated: 15-04-2014

To

Prime Minister of IndiaNew Delhi

Sub: Illegal move of Sh Arup Roychoudhry CMD NTPC to dismantle DVC

The working of NTPC under the CMD Sh Arup Roychoudhry is declining mainly due to poor

policies and management of CMD. While Sh Arup Roychoudhry was CMD of NBCC the

chimneys of UP Genco project at Paricha , 2X250 MW failed which delayed 500 MW

capacity by 2 years for which GOI rewarded him by selection as CMD NTPC. At NTPC it is

a common perception that CMD is out to destroy and dismantle NTPC. Now he has goneone step further by extending his destructive policy to DVC since Sh Arup Roychoudhry

also holds the charge of Chairman DVC .

The gameplan is that Sh Arup Roychoudhry is keen to start work on Katwa project of 1320

MW in West Bengal. However this can be possible only with the consent of West Bengal

Govt and West Bengal Govt is demanding that as a pre condition DVC must hand over its

220 kV and 132 kV transmission system ( in W Bengal area) to W Bengal. A typical barter

deal.

There are several objections.

First that DVC is an organization under Act of Parliament with 3 stake holders Centre, W

Bengal and Jharkhand. It is repugnant to DVC Act to hand over common assets to one of

the stakeholders.

Second that it is a glaring case on misuse of authority on part of CMD NTPC to sell off

DVC transmission assets ( misusing his position as CMD DVC) just in order to help NTPC

get business of executing a 1320 MW project..Katwa. A shameless case of robbing one

CPSU (DVC) to benefit NTPC.

Third that as Chairman DVC Sh Arup Roychoudhry has not used his expertise orresources of NTPC to help the DVC thermal projects in trouble. While DVC Raghunathpur

project is stalled and 4 years behind schedule the priority of Sh Arup Roychoudhry is to

grab Katwa project for NTPC. Instead of using the facility and expertise of NTPC to revive

DVC Sh Arup Roychoudhry is working in reverse direction to sell out DVC assets to get

benefit for NTPC. If the CMD of a CPSU like DVC is himself bent upon selling out and

destroying the organization it is a great betrayal of trust .

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Fourth , to solve the long standing problems of DVC including its thermal projects in trouble

such as Raghunathpur it requires hard work and untiring efforts. However Sh Arup

Roychoudhry is not keen to solve the DVC problems and his sight is on Katwa since

execution of a Greenfield projects involves deciding and awarding contracts of the order of

hundreds of Crores. The keen ness to grab Katwa is understandable.

Fifth, as Chairman DVC it is not fair to favour one stakeholder W Bengal while putting

Jharkhand to disadvantage and while ignoring the GOI which is third stakeholder.

NTPC has a track record that it is unable to get new projects under competitive bidding and

so it signed a number of PPA for new projects under MOU route just as the deadline for

MOU route was ending in Jan 2011. It may be asked what NTPC has done to execute

such projects. These projects are

Gadarwara, Lara, Talcher Expansion, Kudgi, Darlipalli, Gajmara, Barethi, Gidderbaha,

Katwa, Dhuvran, Khargone, Pudimadka, Bilhaur and Kathua.

When NTPC has failed to execute most of these projects then why grab Katwa . In Punjab

NTPC was awarded 2640 MW Gidderbaha project in 2010 with a commitment to

complete it in 2015 , NTPC abandoned and ran away from the project . In J &K NTPC was

given Kathua 1320 project since J&K does not have thermal capacity . Despite the strategic

importance there is no sign of progress of Kathua (Jammu) project.

It is concluded that there are some extraneous considerations for which Sh Arup

Roychoudhry is awfully keen to get Katwa project and for which he is prepared to sell

DVC Transmission assets. We urge that this gameplan must be stopped. Legal opinion of

Law Ministry is required.

Since the selection process of new Chairman DVC had been completed GOI mustappoint the new Chairman DVC so that further damage to DVC can be avoided.

A DVC Board meeting is scheduled within next few days. Ministry of Power should

be directed that no decision be taken on sell out of DVC transmission assets to

West Bengal. CMD NTPC needs to be charge sheeted for misuse of authority.

Patron AIPEF

Copy 1 Minister of Power GOI 2 Cabinet Secretary 3 Planning Commission 4 CMswest Bengal and Jharkhand 5 Secretary Power WB 6 Secretary Power Jharkhand