CHENNAI: Describing the Arappor Iyakkam’s allegations of irregularities in procuring transformers as “illogical”, the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) on Tuesday told the Madras High Court that the prices of the distribution transformers (DTs) are subjected to rigorous tests taking into consideration market rates, input costs, quality, technical specifications, and material composition.
The submission was made before the first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan by the corporation during the hearing of a petition filed by the NGO alleging Rs 397-crore irregularities in procuring the transformers during the tenure of V Senthil Balaji as the power minister.
“Even the L1 price is not accepted mechanically but is subjected to rigorous negotiations with reference to the prevailing market rates, input costs and commercial conditions,” the Tamil Nadu Power Distribution Corporation Limited said.
Further, it stated that the comparison of prices of transformers procured in TN with other states sought to be made with the rates reflected in the GeM (Government e Marketplace) portal is not only “wholly misconceived” and “misleading” but also “illogical” as the very same supplier is not shown to have offered identical transformers on the same or similar technical specifications at various places in a state and destination-based terms.
With the illogical and ill-advised comparison not suiting the distribution system in the state, the allegations of arbitrary allotment and supposed loss of Rs 397 crore are speculative, the affidavit stated.