How Modi’s Baglihar host kicked out IAS officer under pressure of ‘fraudulent’ businessman


Ahmed Ali Fayyaz
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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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