How Modi’s Baglihar host kicked out IAS officer under pressure of ‘fraudulent’
businessman
Ahmed Ali
Fayyaz
_________
SRINAGAR, Nov 4: Tainted businessman Adil Mustafa Khan, who
stands booked in a case of criminal cheating in Jammu, managed to remove senior
IAS officer Sandeep Nayak as Principal Secretary of Power Development Department
(PDD) through Dy Chief Minister and Minister of Power Dr Nirmal Singh on
October 19. As reported in detail in a series of stories exclusively in STATE
TIMES, Mr Nayak had refused to sign an illegal Power Purchase Agreement with
Adil Khan's company after Finance Department advised PDD that the PPA should
not be signed. Prime Minister Narendra Modi's Baglihar host, Nirmal Singh
wanted Mr Nayak to sign the PPA with the controversial company without
determining rates through bidding process and without regard to opinion from
Finance Department.
TIMELINE
March 22, 2013
Science &
Technology (S&T) Department of J&K government accords sanction to a
five-member project approval committee to be headed by Commissioner-Secretary
Science & Technology.
April 9, 2013
Without
ascertaining the applicant company’s
experience in solar power generation and management, financial strength and
ownership of the land as per guidelines of
the union Ministry of New and Renewable Energy, S&T Department
communicates approval to Chennai-based Thein India Energy Pvt Ltd (TIE) for
setting up 100 mw grid connected photovoltaic solar power plant at Chann
Arrorian, Kathua and advises the company to approach Power Development
Department (PDD) for facilitation of Power Purchase Agreement (PPA).
June 20, 2013
S&T
Department communicates to PDD that TEI has been approved for setting up the
solar plant in Kathua. It requests PDD to initiate process for making PPA with
TIE and requests DC Kathua to demarcate the land which TIE claims to acquire
from a private source under rules.
September 2,
2013
Chief Engineer
Systems & Operations (CESO) wing of PDD informs Power Commissioner about
his team’s visit to the site to explore inter-connectivity. The team suggests
inter-connectivity with 132-KV double-circuit Gladni-Hiranagar line for
evacuation of the energy generated by the plant. “…decision needs to be taken
immediately for bringing up infrastructure at 132 KV level for clubbing the
generation from solar plant and PDD System,” the communication reads.
“Investment required in this regard and estimation etc. shall be taken up
separately with representatives of Independent Power Producer (IPP).”
October 4, 2013
S&T
Department advises TIE to execute an “open access agreement” with PDD under the
conditions laid down in J&K State Electricity Regulatory Commission –
JKSERC (Open Access In Intra-state transmission and distribution) regulation
act, 2006”. Under the Open Access agreement, independent power producers (IPPs)
have right to wheel the energy to whichever destination they want at a fee. In
J&K, three existing IPPs, owning three small power projects are using this
facility to sell their energy to the Power Trading Corporation (PTC) of
Government of India. PDD does not purchase their power for its being
“expensive”.
April 21, 2015
Chief Minister Mufti Mohammad Sayeed takes the first review meeting of
S&T and Information Technology (IT) Departments. Deputy CM and Power
Minister Dr Nirmal Singh, Finance Minister Dr Haseeb Drabu, S&T Minister
Sajjad Lone, IT Minister Imran Ansari and concerned administrative secretaries
attend the meeting. On Sajjad Lone’s suggestion, CM desires PDD to facilitate
PPA agreement at the rates issued, if any, by SERC. Drabu observes that PDD’s
buying of solar power from TIE would a “challenging task” for its being
expensive. S&T Secretary pushes the
proposal with the argument that State was bound to purchase solar power to the
extent of 1.5% of the energy demand in 2015-16 “irrespective of the cost of
energy”. PDD is directed to constitute a
high level committee for making draft of the State’s “Comprehensive Power
Purchase Policy”
June 30, 2015:
Chief Executive Officer J&K Energy Development Agency (JAKEDA)
advises TIE Chennai to take up the matter of signing of PPA with SERC and PDD.
On the same day, TIE Chennai urges Principal Secretary Power Sandeep Nayak to
initiate the process of signing the PPA.
July 7, 2015
Government constitutes 6-member committee for formulation of
comprehensive Power Purchase Policy draft vide Government Order No: 140-PDD of
2015 with Principal Secretary Power as its Chairman. With 14 terms of
reference, committee is asked to submit its recommendations within 6 weeks.
July 21, 2015
TIE Chennai
makes its Kauthua plant a Joint Venture with Venayak Energy (VE) Jammu. The
joint venture is named as Then Venayak Energy (TVE). As per the agreement, TIE
will contribute 10% of the total investment
and own only 10% of the profit. Venayak holds 90% share and declares one
Adil Mustafa Khan as its representative. The agreement is signed by Anirudh
Chandel of Pacca Danga on behalf of TIE and Amarjeet Singh of Nanak Nagar on
behalf of VE.
July 23, 2015
First meeting of PPP draft committee takes place. It decides to call
three existing IPPs for presentation. Now a new “representative” Adil Khan
surfaces on behalf of TVE and asks Principal Secretary Power Sandeep Nayak to
initiate steps t for signing of PPA (without waiting for PPP committee’s draft
and its subsequent approval by Cabinet).
July 24, 2015
TVE requests CM to direct PDD “to carry on with PPA at the earliest”.
July 31, 2015
Second meeting of PPP draft committee convened. Committee asks Government
to surrender costly power of Central Generating Stations. CE Commercial &
Survey asked to submit her first report within a week. On the same day, Deputy
Director Planning in CM’s Secretariat Madan Gopal Sharma forwards TVE’s letter
to Principal Secretary PDD and urges him to address the issues involving
signing of PPA.
August 6, 2015
Without waiting for PPP draft and its adoption by Cabinet, TVE
“representative” Adil Khan submits a 16-page PPA---all pages signed by him---to
Principal Secretary Power Nayak and asks him to sign it. Khan claims he has
made so-called PPA on the copy of an IPP’s agreement with West Bengal
government. Significantly, within an hour on the same day, Dy CM and Power
Minister Nirmal Singh’s OSD Shakti Pathak writes a note, flagged as MOST
URGENT, to Principal Secretary Power Nayak and directs him on behalf of Dy CM
“to take immediate necessary steps regarding signing the PPA with the
developer..” With the PPP draft still awaited, Nayak seeks opinion from CE
Commercial & Survey Wing of PDD Ms Shehnaz Goni.
August 14, 2015
CE C&SW PDD reports to Principal Secretary Nayak that PPA with TVE
cannot be signed with determination of rate by SERC through a transparent
bidding process. She reports: “In the interest of public for any power purchase
for Medium Term or long term (10-12 years and above) there should be a proper process
of transparent bidding to discover the competitive rate and fair price. The
rates so discovered by bidding process are to be adopted by the SERC as per
section 57 of J&K Electricity Act 2010. [Section 57. Determination of
tariff by bidding process---Notwithstanding anything contained in Section 56,
the Commission (SERC) shall adopt the tariff, if such tariff has been
determined through transparent process of bidding in accordance with the
guidelines issued by the government].
CE C&SW points out further: “The rates fixed by SERC are worked on
various parameters and are quite high and do not represent the current market
rates either for medium or long term
basis unless a transparent bidding mechanism is adopted in the interest of
state. Finally she recommends: “In view of the above facts, it is neither
advisable nor in the interest of government to enter into such power purchase
agreement with “M/S Then India Energy Pvt Ltd.” binding the State for such a
long term of 10-12 years with uncertainty of rates.”
August 19, 2015
Principal Secretary PDD Nayak endorse the recommendation of CE C&SW
for transparent bidding process and records on file that a professional agency needs to be appointed
for bid management. He forwards the file to Principal Secretary Finance Naveen
Choudhary to seek the opinion of Finance Department.
September 5, 2015
One Dr Rajeev Dhar of Dehradun writes to Commissioner-Secretary S&T
Satish Nehru that J&K Government was going to allot power purchase to TIE
which, he claims, had been allotted Rs 700 crore plant without any bidding
process. He alleges that acceptance letter had been given to the company
“without any tender or any documents”. He further claims that TIE had
adsolutely no experience of generating or managing solar power either in India
or abroad.
September 15,
2015
Finance Department returns the file to Principal Secretary PDD with this
opinion: “PDD should not enter into PPAs with power producers without
determining reasonability and competitiveness of such offers through open
bidding in view of emerging power market in India. The Department should also
explore booking of bundled power which gives certain degree of relief from
costly solar power. Moreover, the Department should ascertain from other states
as to how far renewable power purchase obligations have been met by them”.
October 19,
2015
Principal Secretary PDD Sandeep Nayak is unceremoniously removed and
shifted to Relief and Rehabilitation Department on Dy CM Nirmal Singh’s
sustained insistence.
October 28,
2015
Adil Mustafa
Khan holds a press conference at a hotel in Srinagar to claim that his company
had not got any undue favour from Dy CM or any other Minister or politician. He
claims that he and his company has no association with BJP or any other political
party. However, Adil Khan at the press conference is escorted by Dy CM’s Press
Officer Afaq Gadda and a number of BJP leaders including Fayaz Ahmad and Arif
Raja who have also contested elections on BJP ticket besides BJP’s Media
incharge Altaf Thakur. Meanwhile, it surfaces in newspaper reports that Adil
Khan had been arrested in a case of cheating in Jammu and FIR No: 179 of 2013
had been registered against him under sections of 419 and 420 RPC.
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