KSEB clarifies on charges regarding TransGrid projects

Opposition leader Chennithala had accused KSEB of tampering with tender norms in KIIFB-funded power project at Kottayam and Kolothunadu

THIRUVANANTHAPURAM: KSEB countered the corruption allegation levelled by Leader of Opposition Ramesh Chennithala on the TransGrid power project and said the tenders were floated in a transparent manner. Chennithala had accused KSEB of tampering with tender norms in the KIIFB-funded power project at Kottayam and Kolothunadu. 

KSEB said it carried out reverse e-bidding under e-tender to find the bidder with the lowest quote. “The rates are always higher than estimated cost due to high wages and hurdles associated with the transmission projects. But we have ensured quality of the project by incorporating guarantee clauses up to 84 months in the tender,” said KSEB.   

“The transmission line works, implemented by KSEB between 2011 and 2016, had an average rate of 51 per cent, higher than the normal works. Power Finance Corporation and Rural Electrification Corporation oversaw the tender process and functioned as the bid process coordinator,” said KSEB. E-tender and e-reverse auction were carried out by state-owned Metal Scrap Trade Corporation Limited. It stated that only companies with `500 crore turnover were allowed to participate for the tender. It was later reduced to `300 crore for better competitive bidding. 

The companies that won the tender were qualified even without concession, said KSEB. It clarified that the package appraisal for transgrid projects were carried out much in advance and dismissed the allegation that it was done by a retired transmission director of KSEB, when he joined KIIFB as a consultant. 

KSEB said all projects including TransGrid were subjected to internal auditing and auditing by CAG. Besides, the project was subjected to the scrutiny of Electricity Regulatory Commission and KIIFB. The TransGrid project is expected to double the transmission capacity of the state. The first phase of the project is expected to be complete by 2021.

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