Thursday, February 1, 2018

Now, Arappor Iyakkam picks holes in TANGEDCO’s rebuttal of coal scam

By Express News Service | Published: 01st February 2018 02:17 AM |



CHENNAI: Four days after the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) rubbished the Arappor Iyakkam’s allegations of a multi-crore coal scam, the city-based NGO has come out with evidence to prove that TANGEDCO has provided false information in its rebuttal.

In its rebuttal sent out on Saturday, TANGEDCO claimed that it had procured coal of Gross Calorific Value (GCV) between 5800-5900 Kcal/kg Gross As Received (GAR) because coal of GAR value corresponding to the 6000 Kcal/ kg Air Dried Basis, mentioned in its tenders, was not listed on the coal index.

The corresponding GAR equivalent of 6000 Kcal/ kg ADB is 5604. “It is unlikely that the TANGEDCO, which procures coal for an entire State, could have been so naive,” Jayaram Venkatesan, convener of Arappor Iyakkam told Express.

The TANGEDCO in its rebuttal also claimed that the procurement prices of the 5800-5900 Kcal/ kg GAR ( Coal of higher GCV than required) which had been procured were accordingly adjusted.

Procurement orders accessed by Arappor Iyakkam reveal that the TANGEDCO procured coal three times during which the prices of coal showed 1.5 to 2 $ increase for every 100 Kcal/kg GAR increase in GCV.


The Argus price per tonne of 5800 kcal/kg GAR coal in October 2012 was $72. Adding the shipping charges, the procurement price should have been $76 but the TANGEDCO’s procurement price is between $92 and
$95.

When Express contacted officials in TANGEDCO on Wednesday, they said GCV was not the only criterion for procurement.

“We also look at moisture content and sulphur content in the loads and penalties are levied if they are of inferior quality,” said Sathiyaseelan, Chief Engineer, Coal, TANGEDCO.

Electricity Minister P Thangamani, who was quizzed about Arappor Iyakkam’s allegations, claimed that the Tamil Nadu government procured coal “only through MMTC”, while refuting all allegations of irregularities.

However, a list of procurement orders between 2012 and 2016 accessed by Arappor Iyakkam shows that TANGEDCO has procured coal through MMTC only once in May 2013 and the remaining 18 procurements are from a mix of private and public players.

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