Probe ordered into Bihar power scam

On paper, more than two-thirds of rural Bihar had been electrified by 1997 8212; 47,170 out of 67,546 inhabited villages. But surveys done by the Rural Electrification Corporation REC revealed shocking home truths. In all, 14,402 villages for which the REC had disbursed huge loans were declared 8220;de-electrified.8221; A November 26, 1998, letter written to the PowerMinistry by the Chairman of the REC states that in these villages, 8220;electricity was not available even though they had been declared electrified.8221;

Kumaramangalam says that he decided on ordering a CVC inquiry instead of an internal inquiry since Government officials may be involved. 8220;A lot of money has disappeared into thin air and I am determined to book the people behind the scam.8221; he said. 8220;I also suspect political involvement since it would be impossible for so much money and equipment to evaporate without some level of political patronage.8221;

The scam was highlighted by former Samata Party MP Bashisht Narain Singh at a meeting of the Consultative Committee meeting of the Power Ministry held on November 3 last year.

The MP was given a list of villages purportedly electrified but he returned from a visit to Bihar with information that there was nothing on the ground no electric poles, wire or electricity connections in dozens of villages on the list. This goaded the Ministry to ask for a reportfrom the REC and the de-electrification was discovered. Details with the Ministry show that the largest number of de-electrified villages are in the districts of Ranchi 632, Munger 706, Sahibgang 739, Singhbhum 559, Sivan 615, Nalanda 422 and Saran 455. The report of the REC Chairman says that the de-electrification ocurred due to thefts and natural calamities. 8220;It appears that the wrongful reporting of village electrification and de-electrification of already electrified villages seems to be a regular feature in Bihar8230;.wrong reporting or de-electrification of already electrified villages on such a large scale is highly unusual and therefore difficult to accept.8221; The report also states that as per figures supplied by the Bihar State Electricity Board BSEB, the figure for de-electrified villages in 1989 was 10,930 but this figure had gone up to 14,402 in 1996.

The REC has now suggested that the Power Ministry advise the State government to enquire into such large-scale wrong reportingand take effective steps to 8220;re-electrify8221; the villages and stop this distortion in the future. Prior to this, the hint of a massive fraud had been reported to the Ministry by the former REC Chairman, Rathi Vinay Jha.

In a letter dated November 3, 1997, Jha reported that the de-electrification had occurred due to natural calamities, theft of conductors and line materials.

The REC has also told the Ministry that the BSEB has been heavily defaulting in repayment of REC dues. In March 1997, the dues against loans given by the REC to the BSEB for rural electrification had touched Rs 304 crore.

Therefore, the Power Ministry has been asked by the REC to correct this 8220;obvious distortion of the village electrification programme in Bihar,8221; specially since the REC like any other financial institution has limited leverage in such matters.