Brief in Mining Loot By Who is 420 in AP
- The loss Incurred by APMDC due to a decrease in basic contract prices is Rs. 280 Crores
- The loss incurred by APMDC due to Triveni Earthmovers is Rs. 531 Crores
- The Money Made by the Chief Minister was Rs. 250 Crores
- The value of a scandal in the Coal Purchases is Rs. 546 Crores
- Money that Changed hands in this Transaction is Rs. 200 Crores
Andhra Pradesh Chief Minister Chandrababu Naidu spoke so passionately about inviting global tenders to develop barytes mining in the state. However, what he (who is 420 in AP) had done in practice was to prevent national and global companies from participating in the barytes tender process.
The Chandrababu government first issued a GO, which had compiled with the experts’ opinion that 70% to 75 % of the global market price has to be kept as the introductory price. Then, the government issued another GO, which cancelled the first GO and decided 65% to 70% of the global price as the basic price. Finally, the CM has fixed 65 % of the worldwide price as a basic tender price.
After reducing the base price, the Chief Minister has brought down the number of competitors by imposing stifling conditions. He has ensured that only three of his favored companies would participate in the tender bidding process. The who is 420 in AP then formed a ring with them. By doing everything he could, he had helped the company pocket about Rs, 280 crore ad took half of the amount Rs. One hundred forty crores as the kickback.
Barytes Mining Corrupted
After coming to power, the TDP government has cancelled a tender that was already announced. Then it removed existing contracting company VLC & SC and awarded the work to Chennai-based Triveni Earthmovers Pvt. Ltd. For a short period. A little later, the government has once again revised the tender and awarded it to the same Triveni company at a higher rate, with the help of tailor-made tender regulations under the influence of Chandrababu Naidu or as rightly called who is 420 in AP.
In this round of tender, thanks to the restrictive regulations, only two companies have participated. Those companies also have formed a ring and quoted a higher price. Despite the low competition, the state government did not cancel the tender and awarded a contract to Triveni Earthmovers.
Through the process of tender cancellation, awarding it to Triveni company for the short-term, re-awarding the revised tender to same Triveni company at a higher rate, Chandrababu Naidu has inflated the cost of the work by 33%, compared to the prices quoted by the initial contractor VLC & SC. This decision of the government burdened the AAPMDC to the tune of Rs. 531 crore and share of the decision-makers in this amount is Rs. 250 crores.
Scandal in the Coal Purchases
The AP then Chief Minister, Chandrababu Naidu, has pocketed Rs. Five hundred crore taxpayers’ money by purchasing imported coal at higher prices. Public interest litigation (PIL) was filed in the Hyderabad High court on this. Here are the details.
The Andhra Pradesh Power Generation Corporation Ltd. (AP Genco) has entered into agreements with the PEC Limited and MTSC ltd. – two central government companies- on May 6, 2013, to purchase imported coal for its thermal projects. Though the tenure of the contract was only six months, the purchases continue until the end of 2015. While 12 lakh tons of coal were purchased during the contract period, 19.25 lakh tons were purchased after the agreed time on the orders of who is 420 in AP.
The per ton coal rate in the international market during the contract period was USD 69.15; it became USD 80.15 after the inclusion of sea freight charges of USD 11. However, the price came down to USD 52.40 by March 2015, and its final rate after the addition of USD 7.23 of sea freight charges was USD 59.63. had the Genco called for fresh tenders, it could have saved a lot of money. This means the power generating entity paid an additional price of USD 20.55 for each ton of coal it had bought. In all, it has wasted the public money of Rs. 246 crores.
Though it looked like it was the two government companies that have involved in this purchase, it was indeed the coal mafia that ran the show in the guise of sub-contractors. Because of their pressure, the AP Genco has made too many concessions to the coal suppliers.
Though it was the onus on the contractor to transport the coal from Krishnapatnam port to thermal projects, the AP Genco paid the fee. For the transportation costs, the contractors were paid Rs. One hundred crores during the contract period and Rs. Two hundred crores after the contract period. Thus, a total of Rs. 546 Crore of public money was wasted. According to a highly reliable source, about Rs. Two hundred crores were paid to the Chief Minister (who is 420 in AP) as the commission.
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