KPCL engineer's ‘blunder’ may halt ops in thermal plants

Karnataka’s three thermal power plants, which generate 40% of the total state output, have been put in a tough spot due to non-compliance with emission rules while remedial measures by KPCL have been delayed as an engineer tried to sabotage tenders worth Rs 1,600 crore to favour one of the bidders.

Following a 2017 order by the Union Ministry of Environment, Forests and Climate Change that amended emission norms for thermal power stations in the country, installation of Flue Gas Desulphurisation (FGD) system became compulsory to check air pollution and water consumption. The deadline for implementation of the project was December 2019.

The Central Electricity Authority had set deadlines for each unit of the three thermal power stations (TPSs) in Karnataka - Bellary TPS, Raichur TPS and Yermarus TPS. For some of the total 13 units, the deadline was fixed as early as December 2020 and most of them were to have the FGD system by the end of 2021.

The KPCL issued a tender to build the FGD system for Bellary TPS in 2018. However, the tender had to be cancelled as the lone bidder quoted 60.5% more than the estimated cost of Rs 850 crore.

For the Raichur and Yermurus TPS, tenders were called for FGD works worth Rs 1,660 crore. The state-owned Bharath Heavy Electricals Limited (BHEL) and Bridge and Roof Co Limited as well as private firms EDAC Engineering Limited and Shapoorji Pallonji and Company Private Limited participated.

Sources told DH that even as the tender was about to be finalised, an engineer in the office of the Chief Engineer Thermal Design started leaking confidential documents to one of the bidders.

The documents, obtained by DH, show that the financial bid was opened and Shapoorji Pollonji quoted 13.56% below the estimated cost for RTPS and 8.07% below the estimated cost for YTPS and emerged as the lowest bidder (L1), offering to complete the work at Rs 650 crore lesser than L2. However, the tender faces closure as companies that lost the bid are trying to influence the process. “By making false allegations against evaluation, an attempt has been made to influence the tender process,” the document placed before the Board said.

KPCL (Karnataka Power Corporation Limited) managing director V Ponnuraj said a third party committee was set up to look into allegations of irregularities in the tender process. “The committee examined the documents, including the conditions and technical evaluations, and gave a green signal. Some of its observations were cleared by the legal team. However, since there were allegations raised by disqualified and unsuccessful bidders, we have left it to the Board to decide on cancelling the tenders,” he said.

To a question on action taken against the engineer, Ponnuraj said an enquiry has been initiated.

While Karnataka still imports power as per the purchasing agreements, the three thermal plants account for 40% of the power produced by the state. In the summer it goes up to 50% as demand surges while the share of hydro-power goes down.

Officials said the state is already late in constructing FGD systems and any further delay may attract stringent measures, including temporary closure of TPSs, by the Centre.