Power company blames Maha BJP leader of flouting deal, Rs 170 crore loss

In a shocking development a private sector power major of Mumbai has accused a prominent state Bharatiya Janata Party leader and a sugar baron hailing from a wellknown political clan of allegedly violating a business agreement that has resulted in a loss of around Rs 170 crore to the company in the past over six yearsThe company is Pravara Renewable Energy Lt PREL part of the Mumbaibased Gammon India Ltd conglomerate which had set up a 32MW power generation plant at the Padmashri Dr Vitthalrao VikhePatil Sahakari Sakhar Karkhana PDVVPSSKKarkhana in Ahmednagar helmed by senior BJP leader Radhakrishna VikhePatilIncidentally he is a grandson of the legendary Dr Vitthalrao VikhePatil who founded Asias first cooperative sugar mill a son of former Union Minister the late Balasaheb VikhePatil and the uncle of Ms Nila Ashok VikhePatil who is the highprofile Political Advisor to Sweden Prime Ministers OfficeLast week the PREL filed for Arbitration Proceedings before the Bombay High Court and later plan to file a petition seeking justice and compensation for its huge losses estimated at around Rs 170 crore besides approaching higher political authorities for redressal officials saidWhen contacted Radhakrishna VikhePatil declined to comment on the matter on grounds that it is before the consideration of the courtsSince the matter is already subjudice its not proper for us to comment on it Whatever allegations are made by them we shall reply and present our stand before the court Let the arbitrators decide on the issues raised the Karkhana Chairman Radhakrishna VikhePatil told IANSThe Ahmednagar plant was set up on a BOOT build own operate transfer basis with a 28year period of concession including three years for construction according to Mineel Mali Director AJR Infra and Tolling Ltd the PRELs promoterAs per the agreement the PREL set up a stateoftheart power generation facility the biggest of its kind in the state which can use multiple fuels including green fuels like bagasse biogas cane trash rice bran etc or fossil fuels like coalAs part of the understanding the Karkhana had agreed to supply a certain quantity of bagasse every year to enable the PREL generate electricity for the sugar factorys consumption and also for sale to the MSEBHowever in the past over six years the Karkhana has defaulted by its failure to provide the PREL with over 570lakh tonnes bagasse Mali contendedThis in turn caused a massive reduction in the power plants electricity generation and its production fell short of a whopping 256lakh MW worth around Rs 170crore in the past six years causing huge stressAll efforts to convince the Karkhana top brass to provide the bagasse or other fuel to help the company recover its losses have failed to elicit response compelling them to go for Arbitration proceedings claimed the companyHoping to settle the issue amicably the PREL Director SK Vats in August 2021 shot off a strong letter to the Karkhanas then Managing Director the late TR Dhone demanding suitable compensation for its gross losses of over Rs 170croreThe PREL officials have charged the Karkhana of resorting to strongarm tactics and intimidation to drive away their staff and allegedly grab the fullfledged functional power plant set up at the companys expense but Radhakrishna VikhePatil declined to comment on this tooThe company top brass explained that given the current power crisis scenario owing to coal shortages if the Karkhana cooperates it can contribute to resolving the peoples problems by using the green fuels in the PREL plant which has immense environmental benefitsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever