Thiruvananthapuram: Chief Minister Pinarayi Vijayan has sought to answer all 10 questions raised by Opposition Leader Ramesh Chennithala on the granting of two major contracts of the nearly Rs-10,000-crore Transgrid Project to two big companies.
The Q&A happened neither during a televised debate nor at an engrossing face-to-face interaction. Chennithala raised the questions through a press note. And Pinarayi followed suit while answering them.
Pinarayi blamed opposition leader for hurling baseless charges with an eye on the by-elections. He even hinted that Chennithala was ignorant about the basics of the tendering process. Nonetheless, certain posers like whether the KSEB has the Electricity Regulatory Commission's approval for the use of Delhi Schedule of Rates have gone unanswered.
Is KSEB above law
Ramesh Chennithala: As per the order issued by the then finance additional chief secretary, who is now the CEO of KIIFB, a re-tender should be ordered if the lowest quoted amount in the tender process is higher than the estimated cost by 10 per cent. If the same thing is repeated even in the re-tender, the order says the estimate will have to be revised. But why is it that KSEB has not followed the state government's order?
Pinarayi Vijayan: If the lowest quoted amount is higher than the estimated cost, a secretary-level committee and the Cabinet have the authority to examine whether the tender should be cancelled or approved. Limits have also been prescribed for the tender excess that can be allowed at every stage. Just because the quote is over 10 per cent does not mean the tender would automatically become invalid.
In KSEB, it is the full Board that has the authority to take such a call. This does not come to the consideration of the government at all. Even earlier, this was the case.
Cut-throat KIIFB
Ramesh Chennithala: KSEB says that the only obligation of Kerala Infrastrucutre Investment Fund Board (KIIFB) in the KSEB Transgrid project is to provide loans at 8 to 9 per cent interest. Can you explain how KIIFB has shrunk to the level of a money lender offering loans at usurious rates to public sector companies? Have you examined the economics of securing money at nearly 10 per cent from sources like masala bonds and then offering loans at 8-9 per cent?
Pinarayi Vijayan: The Transgrid project is being implemented on the basis of a tripartite agreement among KSEB Limited, the KIIFB and the Power Department. This is a public document. The opposition leader can examine it at the time of his choosing. In fact, he should be doing it.
The KIIFB has made it clear that it could not provide interest-free loans. If the KIIFB provides KSEB loans at 8-9 per cent interest after mobilising money from sources like masala bonds at 10 per cent, it is because reaching electricity to all is a social commitment.
Delhi rates vs PWD rates
Ramesh Chennithala: KSEB now argues that its project estimates are prepared on the basis of the Delhi Schedule of Rates (DSR) and not, as the state government has stipulated, on the basis of the PWD rates. Has the KIIFB agreed to such a process? Normally, Delhi Schedule of Rate is used for civil works. How can such a rate be employed for a work that has 80 per cent of electrical work and only 20 per cent of civil work?
Pinarayi Vijayan: DSR is an important data used across the country to draw up estimates for civil works. Since 2013, KSEB too has been preparing estimates based on the DSR. It is true that the transmission line is an electrical work. But the construction of towers and the pulling of lines are all civil works. Reason why in such works, estimates are not prepared using two separate schedules for civil and electrical works.
Works for which data is available, KSEB uses the DSR. As for others, the KSEB uses available labour data. When this is done, the schedule will be subjected to a detailed scrutiny and would be given legal approval.
KSEB's solvency
Ramesh Chennithala: Has the Electricity Regulatory Commission agreed to the use of the Delhi Schedule of Rate? Can you explain how the KSEB hopes to pay back the amount?
Pinarayi Vijayan: Kerala's transmission capacity has to expand considerably if its ever-growing power needs are to be met. When this happens, consumption will increase, transmission losses will decline, and in proprtion to it, revenues will also increase. We cannot refuse to take up development work fearing debts. The opposition leader seems to suggest that the debts should remain as such.
Autocrat for Transgrid
Ramesh Chennithala: The estimates of Transgrid projects are over 60 per cent more than the estimate cost of other projects. And unlike other projects, the estimates of Transgrid projects are prepared under the supervison of a single official. For Transgrid projects, a junior chief engineer was given additional charge as chief engineer. He was posted to prepare the estiamte after bypassing many other officials. Later when he became chief enginner, he was appointed as the north zone chief enginner and was given the full charge of Transgrid projects. Following this the post of Trfansgrid chief engineer was created and this person was appointed to the post. This official alone was looking after Transgrid projects right from the start.
Pinarayi Vijayan: All these charges are untrue. Estimates for Transgrid have been drawn up using the same rates and schedules that KSEB employs for other projects. The project is also not under a single official as alleged by the opposition leader. This is a politically motivated misinterpretation. A separate wing, and not a single individual, has been formed for the timely implementation of a project that involves the investment of thousands of crore of rupees. The wing has officers right from assistant engineers to the chief engineer.
Truth about a vigilance probe
Ramesh Chennithala: Was a quick verification done by the Vigilance in the Shornur office of the KSEB based on a complaint regarding the Trangrid project? If so, can you share the findings of the procedure?
Pinarayi Vijayan: No vigilance case related to the Transgrid project has ever been registered. The opposition leader may have mistook the questioning of some officials by the Palakkad wing of Vigilance in 2016 on the basis of some complaint. Even in this case, no irregularities were detected. However, I cannot speak of a non-existent vigilance probe.
Unseating of KSEB chairmen
Ramesh Chennithala: Will you probe whether two fomer KSEB chairmen were removed from their posts for insisting on open tender for the Transgrid project and for seeking an explanation from the transmission director on a written complaint regrading the lack of transparency in the implementation of the projects?
Pinarayi Vijayan: Except for some natural changes, no KSEB chairmen were removed from office. The opposition leader may have been alluding to M Shivshankar and Paul Antony, two officers who had held the post of KSEB chairman and managing director.
Shivshakar was appointed as the Chief Minister's secretary right when this government came to power. He was succeeded by Paul Antony. But since he was overburderned with too many departments, Ilangovan was asked to take over. He moved out only when he was made the industry secretary. These changes have nothing to do with the Transgrid project. To paint such changes as Transgrid-related requires crazy imagination.
Mystery of high wages
Ramesh Chennithala: One of the reasons put forward by the KSEB for the high tender estimate is the high daily wage in Kerala. It says the daily wage in Kerala is between Rs 1000 to Rs 1200. Can you examine where in Kerala such high daily wages are offered?
Pinarayi Vijayan: You would not have made such a baseless charge if only you had attempted to know the existing wages of transmission line workers.
In the labour data, the wage is Rs 450-500. However, at a practical level, one has to offer double or more to get skilled men for such jobs. This is what has caused an increase in labour tender rates. Generally, work on transmission lines are labour intensive. This is why it is usual for the quote, including material and labour, to be over 60 per cent higher than the estimate.
1000 per cent increase in cost
Ramesh Chennithala: Will you probe how a work to level a yard and construct a floor in KSEB's Chithirapuram Yard, originally estimated at Rs 11 lakh, eventually ended up costing Rs 11 crore?
Pinarayi Vijayan: No one has ever made an estimate of Rs 11 lakh. The technical sanction for yard levelling works was given for 11.18 crore. The lowest bid was Rs 8.25 crore,a nd it was for this amojt that the tender was granted and the work completed.
Tampering with bids
Ramesh Chennithala: Will you check why pre-qualification conditions were frequently changed for certain companies?
Pinarayi Vijayan: The original condition was that companies with a turnover of more than 500 crore can take part in the tender process. Later, to increase competition, it was found that it would be beneficial if the ceiling was brought down to Rs 300 crore and above. No changes were made to the technical specifications. The opposition leader can check the turnover of the companies that had won the tenders. Theirs are more than Rs 500 crore. Would this have been the case if the intention was to pick favourites by lowering the ceiling?
