Home » Reverse Tender “Ring” in allocation of power projects in the state

Reverse Tender “Ring” in allocation of power projects in the state

AP BJP Chief Spokesperson Lanka Dinakar

Earlier, in the print & electronic media conference held by me on 8th March 2023 in Visakhapatnam, irregularities in the allocation orders and correspondence issued by the state government for hydro, solar and wind power projects along with the Pumped Storage Projects (PSP ) were questioned, even after more than 7 months, there has been no reply from the concerned minister or officials.

If we look at the MoUs of some companies made in the Industrial Summit held in Visakhapatnam, the suspicion expressed earlier that the government is open to land grabbing, exploitation of natural resources in North Andhra and Rayalaseema, red carpeted for those companies even though they are not qualified, seems to be true today.

The above question has not been answered so far regarding to the GOs which  have uncovered vertical exploitation of 2.50 lakh acres in the state by ineligible companies for power generation projects.

Today, the state government is trying to provide opportunity to loot thousands of acres of crop lands in the villages of  the Anantapur district.

When our party’s national secretary Satyakumar asked in Anantapur that the state government is trying to alienate  around 1.50 lakh acres for these benami companies in Rayalaseema alone, there is no answer till now. Further, From Nellore to North Andhra, the land grabbed by the  benami companies is over 1 lakh acres in the name of power generation agreements with the state government.

Shirdi Sai Engineering Limited and Indosol companies has been floated under whose benami company? What is the rationale behind CM Jaganmohan Reddy for giving preference to those companies for all tenders from the supply of power transformers and electricity metres to all kinds of power generation projects?

So far, the state government has been given opportunity to rob these companies of lakhs of acres of revenue and forest lands, in which how many acres of lands are being leased, and how many acres have been sold for cheap price, a Central agencies investigation is required.

And the truth should come out on the allegations that Shirdi Sai Engineering Limited and Indosoll did not want 5 lakhs per acre as consideration to acquire the required lands,  but asking by these companies for 3 lakhs per acre? It should be revealed that the plans have been prepared for how much it will be built, and also the state government should disclose how many lakhs of acres of land have been decided to be donated for lease.

Does the company have the capacity to set up the unit with an investment of Rs 20,836 crore mentioned by Indosol Company as per their letter by NREDCAP to the State Government (Special CS for Energy of AP) dated 19 October 2022? So far the answer is no. According to that letter, whether it is only the 2.50 lakh acres mentioned for lease from the state government or how many additional lakhs of acres are they trying to block the state government who said 3 lakh per acre as the consideration and hit it adversely against whom?

Indosol Company Capital Details : As of 8th March 2023 when I was questioned these points, Company Authorised Capital is only 10 Lakhs and Paid Up Capital : 1 Lakh only , Where is the money for this company’s investment of 20,836 crores and whose money is it? So far there is no answer.

Indosol is a small company which has just taken off and the source of investment needs to be identified which means investigation by the Central Agencies. With this investigation, the routing of investments is likely to be exposed and the masterminds a of exploitation through the power projects are likely to be exposed.

Who should find out the funds coming to these companies from foreign countries through suit case companies?

Indosol and M/s Shirdi Sai Electricals Limited have the same promoters – Indosol chief promoter Nareddy Visveswara Reddy and Kataru Ravikumar Reddy – both of whom are also the closest associates of CM Jaganmohan Reddy.

Both Shirdi Sai Engineering Limited and Indosol companies are related as Sister concerns, it should be said whether CM Jaganmohan Reddy has an unbreakable financial alliance with those companies.

If the Central agencies investigate the correspondence and GOs issued before the MoUs are signed in the investment summit in Visakhapatnam  related to incorporation of power projects in the state, all the smell of corruption is likely to be exposed.

Net Worth of Shirdi Sai Engineering Limited and Indosol the two companies, MOUs they have entered into, agreements with any local or foreign companies for the ability to implement pertaining to the GOs already issued by the state government for hydro, solar and wind power generation, who are behind it  should investigate?

For hydro, solar and wind power projects Shirdi Sai Engineering Limited, Indosol and Aurobindo signed at the Visakhapatnam Industrial Conference were preceded by GOs issued by the Andhra Pradesh government for those projects, all of which are close associates of CM YS Jagan Mohan Reddy. State Govts issued GOs prior to MOUs entered into at investment conference for implementation of hydro, solar and wind projects? Is this what a reverse tende “ring” means?

Did any one say that judicial review for the approval of these projects had been duly adhered? Can the state government disclose the judicial review report related to these companies before entering the agreements for the power projects? There are no signs that the process actually took place. Going into details,

Indosol :
A total of 7200 MW projects have been allocated to 2200 MW Pumped Storage Hydro Power (Paidipalem East 1200 MW & Paidipalem North 1000 MW), 3500 MW Solar Power (Anantapur & Kurnool District) and 1500 MW Power ) Date of Proposal of Indosol to State Govt.: 23.08.2022,Date of issue of GO No. 19 by the State Government for them : 12 .09 .2022 – That is less than a month after the request, also date of receipt of acceptance letter from NREDCAP : 28 .09 .2022 –  after completion of all required work with such air speed for the approval of the power projects for their well wishers companies in the government, the government did not have the courage to tell the truth when asked that the MOU for the same projects was raised at a later date after completion of all approvals and GOs.

Shirdi Sai Engineering Limited :
This same Nareddy Visveswara Reddy has given 1200 megawatts pumped storage hydro power for Shirdi Sai Engineering Limited, Somashila – 900 megawatts and Erravaram – 300 megawatts projects by the Government of Andhra Pradesh . The Authorized Capital and Paid Up Capital of this Company : 35.50 Crores only,

Indosol and M/s Shirdi Sai Electricals Limited are the same promoters so the financial strength of both the companies combined is nothing to handle this much of huge power projects. But 2.50 lakh acres of land is being trying to looted by these two companies for 8,400 mega watt power projects and solar panel project approved by the YS Jaganmoha Reddy led YSRCP Government and further, it is estimated that together with electric transformer and electric Metre contracts already offered to these companies, the looting is about one lakh crore without any transparency in the governance.

Aurobindo Realty & Infrastructure Private Limited :
As for Aurobindo Realty & Infrastructure Private Limited, that company head Saratchandra Reddy is already an approver in the Delhi Liquor Scam, this company has an 800 MW Hydro Power Project in Nandyala District, Geo No. 18, Date: 12.09.2022 Built on

The same company has already been given 4,000 acres for the Ramayapatnam port and the construction of the port is underway. Now it is known that 1,546 acres are being set up for industrial use and 2,066 acres for the construction of an airport near this port. At least one 10,000 acres of land is being allotted by the time of completion of all these projects to this company.

In addition to the above-mentioned companies, the state government has given GOs for thousands of megawatts of hydro, solar and wind power projects in a similar manner to other companies, and then showed them at the investment conference and misled people as new MOUs. It is reported that operation to loot government, private and forest lands ranging from 3 lakh acres to 4 lakh acres has started in Rayalaseema and Nellore district.

The NHPC Limited:
In this whole affair, the central government company NHPC Ltd., which has 45 years of experience in hydro power, has been sending correspondence since 21.10.2021, so people should know how the state government has derailed 7 hydro projects and handed over those projects overnight to inexperienced private companies.

The State Government led by YS Jagan Mohan Reddy has continuously requested the State Government for approval of their DPR from 21st October 2021 through the Union Ministry of Power but to Indosol, Shirdi Sai Electricals which is inexperienced and lacks necessary financial capacity and experience in this field and not NHPC which is a central government company with 45 years of experience. How was it tied to the non-existent in this line of activity by Aurobindon for Pumped storage power projects? Thought Capital investment capacity of NHPC is Rs. 31,500 crores, it was taken out from the acceptance from the State Government.

In the meantime, again on 22 August 2023, Chief Minister Jaganmohan Reddy started a new drama called Phase 2 Memorandum of Understanding with the central government agency NHPC, to mislead the people before they forget the experience of 7 projects of 6,600 MW pumped storage story between 2021 and 2023. Now suspicions are strong that Phase 2 MoUs are in place with NHPC.

All kinds of renewable and pumped storage power projects in the state have been allotted to their followers and associates benami companies and they are trying to establish a situation in the state where no one else in the state can set up new power projects without their permission. One more important thing,

Suzlon Energy Limited – Axis Energy Ventures India Pvt Ltd story is all Jagan’s seduction secret :
Dated : 29 – 04 – 2015 NERDCAP approved the Project Implementation Agreement with Suzlon Energy Limited – Axis Energy Ventures India Pvt Ltd for wind power generation of 3000 MW and 1,000 MW wind, solar and hybrid in phased manner between 2016 to 2021 ( PIA ), but till now not a single step has been taken forward for this project.

As part of this project, in Nellore, Anantapur and various identified districts, these two companies will establish facilities like blade, tower and generator at the project location, but so far there is no such thing. Actually, it is known that they tried to set up in Anantapur by the Suzlon Energy Limited and it was stopped now.

As part of this project, Skill Development Center and Skill Development Chair shall be established in Energy University proposed in the agreement. In fact, what happened to this university and what happened to the skill development chair that has not yet started.

Suzlon Energy Limited – Axis Energy Ventures India Pvt Ltd on 19 September 2022 together did seek for the extension of the time for the Project Implementation Agreement (PIA) and Scheme Implementation Agreement (SIA) as due dates of completion by 2021, and requested NERDCAP to extend the deadline.  Whose pressure is behind the letter written by NERDCAP to the Special Chief Secretary for Energy Department for appropriate orders to extend the time schdule?

A very important point is that in 2019 Jaganmohan Reddy cancelled Power Purchase Agreements (PPA) when he came to power in the state. But it is not known whether there is any love or greedy business going on with Suzlon Energy Limited – Axis Energy Ventures India Private Limited from the ruling party in the state since AP Wind and Solar Power Policy 2015 and The state government Industrial policy 2015 – 20 for incentives extended for these two companies  without the cancellation of the Power Purchase Agreement (PPA) unlike  other companies, and how and why the same old policies were applied to these companies, do the State Government have the courage to say?

In 2015, Suzlon Energy Limited – Axis Energy Ventures India Pvt Ltd jointly launched 4000 mega watt wind (wind) power and wind, solar and hybrid power projects, by 2022, Suzlon Energy Limited will be out of sight and the entire business will be solely handled by Axis Energy Ventures India Pvt Ltd cleverly though both the companies exist in the initial agreement with the state government. Who is the mastermind behind this?

40 crores were paid to NREDCAP and 200 crores to APTRANSCO under project bank guarantee related to this 4000 mega watt wind (wind) power and wind, solar and hybrid power projects, out of which 200 crores were returned to the companies by cancelling the approval given by APTRANSCO, again this How all the cancelled projects of 4000 mega watt agreements are continuing in the name of Axis Energy Ventures India Pvt.

It is very important to keep in the mind the judgments given by the Supreme Court on various occasions regarding the responsibilities of governments in the case of natural resources and public resources are as follows:

  1. The State holds all natural resources in public trust and it is duty bound to protect it for public good. (M.C. Mehta v. Kamal Nath, (1997) 1 SCC 388)
  2. The State also has to act as a trustee for the benefit of the general public in relation to the natural resources so that sustainable development can be achieved in the long term. (T.N. Godavarman Thirumulpad, In re v. Union of India, (2022) 10 SCC 544)
  3. Natural resources cannot be distributed as a matter of charity for private gains. It cannot be given away at a price below their worth. It will amount to few citizens gaining profits at the cost of others. (In Re. Natural Resources  Allocation, (2012) 10 SCC 1)
  4. What needs to be emphasised is that the State Government cannot give largesse to any person according to its whims and fancies of the political entities and/or officers of the State. Every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well-defined policy, which shall be made known to the public by publication in the Official Gazette and other recognised modes of publicity and such policy must beimplemented/executed by adopting a non-discriminatory and non-arbitrary method irrespective of the class or category of persons proposed to be benefited by the policy. The distribution of largesse like allotment of land, grant of quota, permit licence, etc. by the State and its agencies/instrumentalities should always be done in a fair and equitable manner and the element of favouritism or nepotism shall not influence the exercise of discretion, if any, conferred upon the particular functionary or officer of the State. (2G scam case, (2012) 3 SCC 1)

Unfortunately, the way the Supreme Court allocates natural resources is different from what has been said in various judgments, the current state government in Andhra Pradesh is subject to impeachment in the judiciary.

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