Port Blair, Mar 13: Two 5 MW DG sets at the Suryachakra Power Plant at Bambooflat have suddenly become non operational since Mar 12, 2012 and the Electricity Department is forced to exercise up to two hours rotational load shedding during peak hours from 1700 hrs to 2300 hrs and as and when on required basis during remaining period in Port Blair and South Andaman area.
Blaming the Suryachakra Power Corporation Ltd. for this crisis the Superintending Engineer today said in a release that even though the A&N Administration is paying operation & maintenance charges of around Rs. 35-40 lakhs every month to M/s SPCL, they neglected to carryout the timely overhauling, which became due in March 2010, and the current breakdown resulted.
“It is expected that these DG sets would come into operation only after receiving the required spares from equipment manufactures. It is likely that the same may take considerable time. The Electricity Department, A&N Administration is trying their level best to improve this critical situation by commissioning additional 5 MW DG sets through hiring which is expected to be put into operation by the end of this month,” the SE said in his release.
REJOINDER TO PRESS NOTE
We write here reference to the Wednesday 14.03.2012 edition of “THE DAILY TELEGRAMS” which carried a press note from the Electricity Department on the breakdown of Two 5 MW DG sets at Suryachakra Power Plant. According to the press note
it was alleged that even though the Administration is paying O&M charges of around Rs.35 to 40
Lakhs to every month to SPCL, they neglected to carry out the timely overhauling which became
due in March 201 0 and the current breakdown resulted.
In this connection the company i.e., M/s. SPCL would like to enlighten the public the true facts,
that while paying the above amount to the company, the Electricity Department was withholding
huge amounts by not paying fully on our tariff invoice from the commissioning of the plant i.e.,
April 2003 onwards without any genuine reason and the amount was getting mounted up every
month which was sheer violation of the PPA conditions entered by them. After long persuasion
the issue was resolved in 2006 and certain amount was paid and some more amounts are yet to be paid by them till date. Further due to non-finalization of completed project cost for more than 8 years the company is getting less tariff and accordingly huge arrears of amount has been accumulated to be paid by the Elect Dept to the tune of more than Rs.50.00 Crores.
Due to the non-receipt of such huge amounts from ED the company is facing high financial constraints, even not having sufficient funds to meet the expenditure for taking up timely overhaul of the engines. As such the company has requested for settlement of long standing pending payment issues for the last 9 years and sanction of a loan of Rs.5.00 Crore which was requested by us as early as in the month of early August 2011 and again in November 2011 not
as an extra payment but as a loan or advance against our huge withheld / receivable amount from Electricity Department to the tune of more than Rs.50.00 Crores to meet expenditure to carry out the overhaul of balance engines had been heeded by the department then itself.
Alternatively at least the arrears pertaining to HSD density difference for the period April 2003 to March 2007 was paid to us in the month of November 2011 itself as promised during the signing of Addendum-2 to PPA which is now understood that the Department is arranging payment of the above amount rejecting our request for the above loan. This situation of breakdown of one engine and forcible shutdown of other engine as a precautionary measure could have been avoided resulting in load shedding in peak hours in and around Port Blair, had the Electricity Department heeded to our request for the above requested monetary help which was purely in the interest of public only.
For the last more than 8 years we have been supplying quality power to the Islanders without any interruption in spite of several difficulties faced by us due to its location. Even
though the cost of generation by Electricity Department power housed works out to around
Rs.17/- to 22/- per unit, our company is supplying the power @ Rs.9.00 per unit thus saving huge amounts to Electricity Department resulting in saving of more than Rs.100 Crores per year to the A&N Administration. Accordingly the A&N Administration has saved more than Rs.900 Crores in the last 9 years which is the biggest benefit to the A&N Administration. Also by supplying HSD oil to our power house by Electricity Department, the department is also being benefited to the tune of more than Rs.4.00 Crores every year in the last more than three years.
The company has not received the minimum required co-operation from Electricity Department
in the earlier part of more than seven years. With such non co-operative attitude of Electricity Department there will be no meaning of public and private partnership of projects and IPP concept.
As such we don’t see any wisdom in blaming our company by Electricity Department for neglecting the timely overhauling of the engines
For Suryachakra Power Corporation Limited
K. Vijay Kumar
General Manager (Technical)