‘Bribery behind Rs 4,442 crore Ennore plant tender to pvt firm’

CHENNAI: Three office-bearers of trade unions at Bharat Heavy Electricals Ltd (BHEL) have approached the Madras High Court demanding a CBI inquiry into awarding of Rs 4,442-crore tender by the Tangedco towards Ennore Thermal Plant expansion to the BGR Energy Systems Pvt Ltd, instead of BHEL.

The case came before the first bench of Acting Chief Justice T Raja and Justice D Bharatha Chakravarthy. The petitioners — G Sankar, T Karthikeyan, and M Parakasam — represent BHEL Mazdoor Sangam and BHEL Piping Mazdoor union.

According to the petitioners, after the tender notification was issued, BHEL (Bharat Heavy Electricals Ltd), BGR Energy Systems, and other companies applied. While the bid was opened, BGR Energy Systems had quoted Rs 4,465.08 crore and BHEL quoted Rs 4,957 crore.

“Since the private firm quoted a lower bid, Tangedco, which has called the tender, decided to give the tender to BGR Energy Systems for Rs 4442.75 crore.

As per the tender rules, 10 per cent of the tender cost should be paid as a security deposit and performance bank guarantee (SDPBG) by the private company within 30 days.

However, the company did not pay the amount of Rs 439.17 crore. Even though the tender was decided on December 12, 2019, the private company did not pay the SDPBG,” the petitioners argued.

They further added that as the company delayed the payment for more than 16 months, Tangedco decided to cancel the Letter of Intent for the tender extended to the company. “While it was challenged before the court, the HC stayed the tender proceedings. However, the government re-awarded the tender to the private firm in March 2022,” they submitted through their counsel.

The trade union functionaries further pointed out that since BGR was not complying with the tender rules, the tender should have been awarded to the union government’s BHEL. “However, the State gave the tender again to the private firm. There is large-scale corruption involved in this tender which should be investigated by an independent agency like the CBI,” the petitioners submitted.

However, the state government countered the arguments of the petitioners saying the trade union members have no locus standi to challenge the tender process of Tangedco.

As the petitioners’ counsel sought adjournment for submitting the Supreme Court’s judgments on this issue, the bench adjourned the matter to February 21.