VIJAYAWADA: Brushing aside the allegations that Jaiprakash Power Ventures Limited is bankrupt, it is not experienced and will earn Rs 2,000 crore by taking over the sand mining and supply in the State, Principal Secretary (Mines) Gopal Krishna Dwivedi asserted that changes have been made to the sand policy to ensure transparency, eliminate corruption, make required sand available at affordable prices to the people and protect the environment.
Stating that utmost transparency was maintained in selection of contractor, he said, “One of the clauses in the tender document says the company’s net worth as on March 31, 2020 should be at least Rs 152 crore for the 1st package, Rs 238 crore for the 2nd and Rs 95 crore for the 3rd. So, the company is not bankrupt. Another clause clearly states that the company should have completed similar works in the past five years. The government will also holding an amount of Rs 120 crore as the bid security.’’
On an average, the state required 2 crore metric tonnes of sand. With the price capped at Rs 475 per tonne, the total value on this contract is not more than Rs 950 crore. Out of this, the company will have to pay Rs 765 crore to the government. The operational cost per tonne is Rs 64 crore. Therefore, the company is set to earn only around Rs 72 crore, he claimed.
Dwivedi said a central government agency, Metal Scrap Trade Corporation (MSTC) was given the responsibility, primarily to ensure that the process is implemented in a free and fair manner. After verifying the eligibility of the company, the MSTC proposed the name of Jaiprakash Power Ventures Ltd, he said. The State also included multiple penalty clauses in the contract. For instance, the company will have to pay a penalty in case of failure to operate at least 70 per cent of the reaches in the State.