CM's reply to Chennithala on e-mobility deal triggers more questions than answers

CM's reply to Chennithala on e-mobility deal triggers more questions than answers

The controversy surrounding the consultancy for Kerala's e-mobility project is getting murkier.

Opposition leader Ramesh Chennithala had on June 30 alleged that it was the objections raised by the then Chief Secretary and the additional chief secretary (finance) that led to the government dropping its plans to enter into an MoU with the Swiss bus building giant HESS.

In reply, Chief Minister Pinarayi Vijayan on Wednesday said the Chief Secretary gave his opinion only because he had sought for it. The Chief Secretary had noted two things on the file. “How was HESS selected?” And two: “Was there a due process?”

The Chief Minister said it was selective disclosure and was sarcastic. “Clearly, the file would not have gone walking to the Chief Secretary on its own whim,” Vijayan said. “Just before the portion he (Chennihala) had quoted, the Chief Minister had jotted something. 'Chief Secretary, please see this,' I had written. Meaning, before a decision is taken, I was telling the Chief Secretary to examine the issue and put up his opinion,” he said.

Top Babu given the short-shrift

Problem is, the Chief Minister's apparent eagerness to get his top bureaucrat's considered opinion on the deal does not tally with the dates Vijayan himself has provided on the progress of the deal.

The Chief Secretary's objection note was sent far in advance, on January 10, 2018, a time when even a steering committee was not formed to prepare a road map for Kerala's e-vehicle policy. This committee, the Chief Minister himself said on June 1, was constituted on May 15, 2018. The state-level empowered committee convened and decided to draw up an e-vehicle policy even later, on June 18. The Chief Minister said on Wednesday that the Swiss company HESS expressed interest in investing in Kerala on the basis of two notes issued by the transport secretary on November 30 and December 21, 2018, nearly a year after the Chief Secretary had put up his posers.

So was the LDF government in discussions with HESS even before an e-vehicle policy was thought of? Can it also be interpreted that the transport secretary went ahead with the HESS deal ignoring the Chief Secretary's concerns? If so, could he have done it without the nod of the Chief Minister?

Advance opinion from Chief Secretary

There is yet another puzzle. If, as the Chief Minister claims, the HESS proposal came before the government's consideration after the two notes issued by the transport secretary (On November 30 and December 21), how come an opinion on the selection of HESS was sought from the Chief Secretary in early January?

After the transport secretary's notes, the Chief Minister said HESS officials came to Kerala, visited KSRTC and Kerala Automobiles Limited, and held discussions with the industries and transport secretaries. They had even expressed interest in a joint venture for a bus building unit in Kerala, the Chief Minister said.

All this, a year after the Chief Secretary had asked some very fundamental questions.

Pinarayi's non-linear argument

It also stands to reason that these visits happened at least after November 30, the day the first note was issued by the transport secretary.

It was after these visits that the KAL invited expressions of interest (EoI) to see if any other companies were interested in a joint venture.

The Chief Minister said when no other company came forward, it was decided to go ahead with HESS. Some time clearly would have elapsed.

“A draft MoU was then submitted for the government's consideration,” the Chief Minister said, and added: “It was in connection with this file that I had asked for the Chief Secretary's opinion.”

The Chief Secretary's note, which the Chief Minister said was given after he had asked for it, was given on January 10, 2018. But the Chief Minister himself says that HESS's interest came to the government's notice only when the transport secretary issued two notes on November 30 and December 21.

Logically, the HESS visit should happen later and only then could they put up the proposal for a JV, and only after the KAL issued the EoIs could they draw up even a draft MoU. The Chief Minister said that it was in connection with this draft that he had sought the Chief Secretary's opinion. How can the Chief Minister possibly seek an opinion on a development that had taken place either late 2018 or probably in early 2019 nearly a year ago in January 10, 2018?

Like in some non-linear movie, the Chief Minister appears to have jumbled up time.

Finance Secretary's late cut

Then there is the Finance secretary's strongly-worded objection. This was served on August 9, 2019, three weeks after the transport secretary secured the approval of the Union External Affairs Ministry for the MoU with the Swiss Company on July 22, 2019.

The Chief Minister said discussions were held with the departments concerned but the finance secretary's letter suggests otherwise. “Government of Kerala cannot procure such a large number of buses without tender procedures and without knowing the final price. Government of Kerala may not have resources to procure 3000 e-buses costing Rs 1 to 1.5 crore each. Administrative Department should clarify what would be the source of the fund. The Finance Department would not recommend going ahead with such an MoU by KAL unless there is clarity on the commitments,” the note says.

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