NGO alleges coal scam in Tangedco

Addressing reporters, Jayaram Venkatesan, Coordinator, Arappor Iyakkam, said that 2.44 metric tonnes of steam coal was imported from Indonesia between 2012 and 2016, for Tangedco by private companies, for a price of Rs 12,250 crore. However, the coal was purchased at rates higher than the market rates and the total loss to the exchequer was Rs 2,177 crore. 

Another area where the scam was reported was in importing inferior quality coal, with moisture content. Jayaraman also said that the Gross Calorific Value (GCV) for the imported coal should be at least 6000 kilo calories per kg but the imported coal had the GCV of just 4,500 kilo calories per kg. 

“There is 25 percentage difference between the required GCV and the actual GCV in the imported coal which resulted in lesser power production. This resulted in the loss of Rs 2,395 and it was also confirmed in the CAG report,” he said. 

He said that reverse auction system was not followed in the tendering process. Former electricity minister and secretaries should be held responsible for the scam as they failed to follow Tender Transparency Rules, he said. The loss was Rs 1,494 crore, added Jayaraman.