AP BJP Political Feedback Pramukh Lanka Dinakar
There was GOs issued by the Government of Andhra Pradesh prior to the recent Visakhapatnam Industrial summit pertaining to the MOUs entered by the Shirdi Sai Engineering Ltd, Indosol and Arabindo for the Hydro Power projects, all these entities are close associates of the CM YS Jagan Mohan Reddy. Whether MOUs are issued prior to GOs issued by the Government for the execution of Hydro, Solar and Wind Projects? Isn’t it reverse in the execution of procedure by the Government of AP?
Whether INDOSOL has capacity to establish unit with an investment of 20,836 Crores as per their request letter dated : 19th October 2022, where their credit worthiness is not at all on par with the size of project with 2.50 Lack Acres mentioned for lease only and then How much Land in Lacks of Acres required for them for outright sale for 3 Lacks per Acre instead of State Government proposed for Rs. 5 Lack per Acre as request by the INDOSOL in their letter dated 19th October 2022 to The Special CS for Energy of AP when their company Authorised Capital is : 10 Lacks and Paid up capital is : 1 Lack only, where is the source of Investment for 20,836 Crores and whose money it is? Definitely inside investor shall be identified otherwise where is the source of investment for this small company. Further, the promoters of the Indosol and M/s Shirdi Sai Electricals Ltd are the same.
What is the experience of the Shirdi Sai Electricals Ltd in the implementation of the Hydro Power Projects , This company had gained momentum only for last two to three years with the blessings of the CM YS Jaganmohan Reddy, But the financial strength in terms of Networth of the Shirdi Sai Electricals Ltd does not match for the investment size of the Hydro Power Project.
How the Government of Andhra Pradesh had sidelined the 45 years experienced Union Government’s PSU NHPC in the line of activity for the benefit of private business entities like INDOSOL, Shirdi Sai Electrical Ltd, Aurabindo etc the benamis of the CM YS Jagan Mohan Reddy has been revealed after examination of the documents and letters of correspondences between the Union and State Government entities and GOs issued by the Government of Andhra Pradesh to facilitate undue opportunities and benefits to the private parties and close associates of the YS Jagan Mohan Reddy.
Flow of Facts as per the documents:
A) NHPC – National Hydro Power Corporation Ltd ( GOI Enterprises – PSU ) engages in conceptualisation to commissioning in Hydropower Development in India, In Addition to that, it engages in Solar and Wind Power.
NREDCAP – New & Renewable Energy Corporation of Andhra Pradesh Ltd ( State Government of Andhra Pradesh Entity ) engages in Generate Electricity through Non-conventional renewable energy – wind, solar etc.
Draft MOU between NHPC and NREDCAP on 11th February 2022 for JV – As per the proposal of NREDCAP.
Proposal : Setup the 7 Pumped Storage Hydro Power Schemes in Andhra Pradesh as discussed with Secretary Energy Department, GoAP and Convenor of APPCC on 7th February, 2022.
Proposed Projects Implementation in two phases.
Phase 1 : Setup the 7 Pumped Storage Hydro Power Schemes
Phase 2 : Subject to techno – commercially viable and other Pumped Hydro Power Projects as agreed by the parties.
7 Projects are :
Project Name District Capacity
Gandikota YSR KADAPA Dist. 1000MW
Chitravati Ananthapuram 500MW
Somasila YSR Kadapa 900MW …R’Seema :
Owk Kurnool 800MW (3200MW)
Kurukutti Vijayanagaram 1200MW
Karrivalasa Vijayanagaram 1000MW …N’Andra:
Yerravaram Visakhapatnam 1200 MW (3400MW)
Total 6600MW
Important clauses in the proposed MOU in the JV:
2.1 Expenditure incurred shall be borne by the both parties as per the proportion of share holding. But, Prior to incorporation shall be borne individually by the parties.
2.3 NHPC to support for obtaining clearances such as, Techno-Economic Clearances (TEC) for DPR from various Directories – CEA, CWC, CSRMS & GSI and MoEF.
3.5 Cost of the project will be met by Debt : Equity norms as per the guidelines
4.3 Chairman and CEO of the JVC shall be from NHPC
5.1 Shareholding : NHPC – Not less than 51%, NREDCAP – Not more than 49%
Where is the implementation of JVC between NHPC and NREDCAP as per the Drafted MOU, Dated 11th February 2022 ?
B)i) Letter from Union Ministry of Power, dated : 11th October, 2022, requested the State Government of AP in para 5) and para 6) pertaining to the 7 Hydro Power projects on proposed JVC, dated : 11th February 2022 – Clearly mentioned in the letter “ Consent of NREDCAP and Govt of AP is still waited
ii) Letter from NHPC, Dated : 14th December, 2022 had clearly mentioned about the continuous follow ups from their side pertaining to the Draft MOU, Dated : 11th February 2022 and letter dated 8th April, 2022 for the approval of the State Government of AP about the Revised MOU.
Mentioned clearly about the request letter dated: 11th October 2022 by the Union Ministry of Power for the formal allotment/approval of MOU.
NHPC had again request the State Government as “ Kindly consider allotment of the available/suitable projects to NHPC for the implementation either stand alone or Joint venture mode ”
C) In the 2nd para of the Letter from NREDCAP to Special CS of Energy Department, Dated : 3rd January 2023 mentioned clearly that “ NHPC Ltd has been pursuing Joint Development of 6 PSP scheme in AP State. These projects were already allotted to the private developers.
Conclusion :
YS Jagan Mohan Reddy led State Government removed the 45 years experienced Union Government PSU NHPC though it has been continuously requesting the State Government for the approval of their DPR through Ministry of Power since 21st October 2021. Further, NHPC’s CAPEX Investment capacity was for Rs. 31,500 Crores. Though such a huge investment source is available, Why the small companies like Indosol, Shirdi Sai Electricals and new to this of the Aurobindo have been careful .
