CHENNAI: In A shocking instance, 55 bogus brick companies in and around Salem have reportedly minted money by selling fly ash received free of cost from the Tamil Nadu Electricity Board (TNEB).
A Union government regulation issued in 1999 stipulated supply of fly ash free of cost to small-scale units by power-producing units of State energy boards. The TNEB had all along been giving fly ash to small-scale units – mainly fly ash brick manufacturers registered with it.
The Mettur Thermal Power Station (MTPS), an important power-generating unit of the TNEB had been supplying about 40 to 45 thousand tons of fly ash every month to about 90 small units registered with the MTPS in and around Salem.
Following complaints that fly ash is being procured by unscrupulous elements, a raid was conducted by EB’s vigilance and audit team. The probe discovered that 55 out of the 90 allottees in Salem and Erode were fake.
“The companies exist only in name. They had been taking fly-ash and selling it in the open market,” a senior official told Express. The allotments of such companies have now been cancelled.
According to norms, small and micro units could either use fly ash as a raw material or utilise it for bona fide purposes like land filling in their premises. “These fake companies, do not even have the required manufacturing facilities.
They straight away sell fly ash in the open market after procuring it from the MTPS.”
Norms revised
TNEB Chairman, CP Singh said the use for fly ash in domestic industries was minimal when the Union government notified the ‘supply of fly ash free of cost’ norm to small units a decade ago. “Now, the situation is entirely different and we have huge demand for fly ash,” he said. Norms have hence been revised and small units can procure fly ash by paying Rs 100 per metric ton. Big industries like cement manufacturers should pay Rs 300 per ton. Companies that have made investment in upgrading facilities in EB owned power-generating units would get fly ash at a concessional price of Rs 200, he added.