BJP involved in power scam in Arunachal Pradesh, says APCC chief

 Itanagar (Arunachal Pradesh) : Accusing the Bharatiya Janata Party (BJP) government of committing one after another scam unchecked, APCC president Takam Sanjoy alleged that another such scam is in offing and would surface soon.

Navayuga Engineering, operator of Krishnapatnam Port, along with Sikkim Power Investment Corporation (SPIC) have submitted binding bids for 15,000-crore planned hydro power project in Arunachal Pradesh that is undergoing insolvency proceedings, Sanjoy told ANI in an exclusive interview here today quoting report of a national daily.

The former MP further claimed that "1,750-mw project awarded by the GoAP to Athena Energy Ventures (AEV) on a 40-year concession has been stalled due to incomplete forest clearances and insufficient funds, he claimed. The AEV owes Rs 550 crore to Indian Bank and Corporation Bank as working capital dues that the lenders were unable to recover from the former.

"Navayuga's bid is pegged at Rs 300 crore, sources directly briefed on the matter said adding the SPIC, the first state-run organisation to take part in bidding for a bankrupt company, has offered a little over Rs 250 crore, these sources said.

"Though Navayuga's bid is said to be higher, the committee of creditors has disqualified its bid on the grounds that it violates provisions of Section 29 A of insolvency and bankruptcy code which disallows people connected to defaulting promoters/companies from bidding for the stressed assets. However, the port operator has challenged the decision at the National Company Law Tribunal (NCLT)".AEV's promoters include a consortium of state-run Power Trading Corporation, IDFC and A Sitaram Raju, according to its website while Karvy Group's M S Ramakrishna is a director.

Allahabad High Court, in a ruling on May31 last, had directed Union Finance Ministry to meet with stakeholders to identify a solution for stressed power companies that were not 'willful defaulters'.The HC's directive was in response to a petition by Independent Power Producers Association of India that sought relief from a February 12 RBI circular that provides a short, six-month window for banks to address defaulting companies before pushing them into insolvency proceedings.

The power producers' body has claimed a number of projects would go into liquidation if they were pushed into the insolvency route and sought Govt intervention to identify a solution, he further claimed.

"There is a need to create alternate structures to rescue power projects that have off take agreements for less than 50% of their capacity", said KPMG's head of resolutions and restructuringManish Aggarwal. Overall lenders will need to accept the new reality of huge debt cuts", he said, and wondered how long the state BJP Govt could befool the people.