Vijayawada: The ruling TDP on Monday alleged that a Rs 1000 crore scam took place in the purchase of coal at the Krishnapatnam thermal power station during the YSRCP regime.
Former Minister Somireddy Chandra Mohan Reddy accused Trident Knowledge Company, which is said to be one of the companies of Aurobindo, of supplying substandard coal to AP GENCO, resulting in a huge financial loss and burdening people with additional tariffs.
Speaking at the TDP central office in Mangalagiri, Reddy said, “Between 2019-24, Vijayasai Reddy and his partners operated as a looting gang in AP. They left nothing untouched, including Kakinada Port, SEZ, 108 and 104 ambulances, and the AP GENCO plant.”
According to Reddy, AP GENCO received 4.5 lakh tonnes of substandard coal mixed with soil, worth Rs 382 crores at Rs 8,500 per tonne. “Trident Knowledge, the company that supplied substandard coal, is affiliated with Aurobindo,” he stated.
Due to the poor-quality coal, the Plant Load Factor (PLF) at AP GENCO Krishnapatnam thermal power project dropped to 40% in 2022-23. It has now reached 55% after the TDP coalition came to power.
“Due to the substandard coal, power generation losses reached a significant level. To meet the demand, power was purchased in the open market for Rs 10 to Rs 14. Industries faced power cuts, and aqua farmers incurred heavy losses. On top of it, power charges increased for consumers to meet the expenditure of procuring power at a higher cost and also by paying exorbitant prices for poor-quality coal,” Reddy explained.
He asked the officials concerned to explain the coal purchase details for the Damodaram Sanjeevaiah Krishnapatnam Thermal Power Project, reasons for low generation, penalties imposed on the company, and actions taken against Trident Knowledge Company.
“AP GENCO employees strongly opposed the substandard coal, stating they would not attend duties if production continued with that coal. One lakh tonnes of substandard coal was rejected,” Reddy said.
He called for an immediate CID or ACB investigation into the coal supply transactions and to bring the culprits to book without showing any leniency.
