UPPCL buying expensive power from private traders: BJP to Lokayukta

Bharatiya Janata Party national secretary Kirit Somaiya today filed a complaint to UP Lokayukta,alleging that government through Uttar Pradesh Power Corporation Limited (UPPCL) has entered into the contracts with five private power trading companies for buying electricity at a rate which was much higher than the prevailing market price leading to loss of Rs 3,000 crore to the exchequer.

Somaiya alleged that UPPCL has agreed to buy 2100 Mega Watts electricity at Rs 4.70 per unit from July 1,2011 to June 30,2012 while the electricity is being sold at Rs 3 per unit in the market. Besides,as per the the MoUs with private power trading companies,the UPPCL cannot buy electricity from any other company during the contract period,he alleged. “Because of this binding,the UPPCL has not used its power quota for July from the NTPC and other central grid power companies which provide the electricity at Rs 1.50 to Rs 2.20 per unit,” said Somaiya talking to the media persons at a press conference after filing the complaint.

Somaiya,in his petition to Lokayukta,complained that the UPPCL has entered into a pact with five private power trading companies,namely PTC India Ltd,NVVN,Global Energy,Mittal and Adani.