MUMBAI, July 15: The Bombay High Court has observed that the Maharashtra State Electricity Board's decision to award the contract of retrofitting of generator sets to Messrs Power Plant Performance Improvement Limited (PPPI Ltd) was ``unreasonable and irrational.'' However, the division bench of Chief Justice M B Shah and Justice R M S Khandeparkar refused to stay the contract.The judges said the contract was given without informing the seven other contending parties, but added that staying the retrofitting work wouldn't be in public interest. The order comes in the wake of a petition filed by Congress party legislator Digvijay Khanvilkar which alleges that former MSEB chairman Purushottam Gajvalwar used unfair means to award the contract for retrofitting of generator sets to PPPIL.It is alleged that the company was to be given the contract on a pilot basis at Koradi thermal power station, so that a decision could be taken for other generator sets in the state's different power stations. Retrofittingessentially means repair and overhauling of generator sets, which increases the power generation capacity. Accordingly, tenders were also invited for the retrofitting contract. But Gajvalwar used his influence to award the entire Rs 187 crore contract for all 15 generator sets to PPPIL. He got the proposal hurriedly passed in the directorial board meeting immediately before the end of his tenure, it is alleged in the petition.The petition also makes Energy Minister Gopinath Munde a respondent party. It is alleged that he gave misleading information about the contract when questioned about PPPIL on the floor of the assembly. Senior counsel Srihari Aane, assisted by A A Kumbhakoni, representing the petitioner, today urged the court to stay the contract. But the plea was not granted. PPPIL's counsel Gulam Vahanvati said there were no underhand dealings in awarding the contract. The company claimed to have invested Rs 30 crore in the work, and any stay order would fatally affect its prospects, it was argued.Petitioner's counsel Srihari Aane argued the court should at least stay the retrofitting work in power stations other than Koradi. The court didn't grant the plea. MSEB counsel T R Andhyrujina said the stay could be granted only if the petitioner is ready to pay for the possible public loss if this litigation delays the retrofitting work.Meanwhile, the court today ordered the petitioners to also make the seven other contenders to the contract respondent parties in the petition. The next hearing is on August 5. Advocate General C J Sawant appeared for the state government towards the end of the hearing. He said Energy Minister Munde is not involved in the awarding of the contract. Hence, he should be excluded from the respondents.
