Tangedco’s coal import resulted in Rs 3,000 crore loss: Activists

According to the activists, TANGEDCO in total purchased 2.44 crore metric ton of steam coal from Adani Global Pte Ltd, Knowledge International Strategy Systems Pte Ltd, Chettinad logistics Pvt Ltd, MMTC Ltd and MSTC Ltd. Out of this, 49% of the quantity of coal imported were given to Adani Global Pte Ltd (1.19 crore metric tonne).

“TANGEDCO imported coal from Indonesia with specification mentioned in the purchase orders as Gross Calorific Value (Air Dried Basis) of 6000 Kcal/ Kg, which is equivalent to Gross Calorific Value (As Received basis) of 5500 Kcal/ Kg. Instead of comparing the rates for 6,000 Kcal/Kg of air dried basis with that of 5,500 Kcal/Kg of as received basis, the payment was made for 6,000 Kcal/kg of as received basis, which resulted in at least a 10$ of over-invoicing per metric ton,” explained Jayaram Venkatesan, Convenor of Arappor Iyakkam.

The loss due to this technical fraud, can range between 14% to 25% of the procurement value resulting in a loss between Rs 1730 and Rs 3025 crore. Jayaram added that Directorate of Revenue Intelligence (DRI) has also found that while Indonesian coal came directly, the invoices were routed through different countries like Singapore and Dubai to over-invoice. “DRI estimates this over invoicing to the tune of more than 50%. If you add these, the loss may even exceed Rs 6000 crore for Tamil Nadu in the last 5 years,” estimated Jayaram, adding that former Electricity Minister Natham Viswanathan and former TANGEDCO CMD Gnanadesikan IAS should be held accountable.

Despite the DRI and CBI having enough evidences against the modus operandi, no action has been taken for the last two years, said Jayaram. “A case is going on in the Delhi High Court. We want a Special Investigation Team (SIT) appointed to investigate this scam,” added Jayaram.

A Tangedco official, “whatever Tangedco has to say, will be filed as a reply in the Delhi High Court.”