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| Edited By: dna Correspondent |Source: DNA |Updated: Mar 18, 2018, 04:09 AM IST
In a surprising move, Gujarat Urja Vikas Nigam Limited (GUVNL) & Dakshin Gujarat Vij Company Ltd (DGVCL) slammed a fine of Rs2300 crore on Hazira-based Essar Group. The step came after GUVNL allegedly found the company using excess electricity from its sources. The entire incident came to light after GUVNL filed an affidavit in the Gujarat high court. Essar officials on their part said that there has been a misunderstanding.
GUVNL entered into a Power Purchase Agreement (PPA) in 2010 with Essar Group in Hazira. As per the agreement, GUVNL was to supply a fixed amount of electricity at the rate of Rs2.80 per unit to the company. After the contract was signed, DGVCL officials found Essar using more than the specified limit of electricity and thus breaching the contract. As GUVNL did not have staff in the region, it had used DGVCL's employees to inspect the usage.
On checking the electric meters, the officials allegedly found Essar pumping-in excess electricity and that too at a heavy load. The surprised officials then immediately informed their superiors in Gandhinagar. The information was apparently cross-verified and found to be true. This was when GUVNL decided to penalize Essar for breach of contract.
Sources said that GUVNL fined the company thrice in the last one month. First it fined the company for Rs500 crore, then Rs800 crore and in the end Rs1000 crore.
It also allegedly asked Essar to pay the fine within a fortnight or face action.
To strengthen its case GUVNL and DGVCL filed an affidavit in the high court accusing Essar of fraudulence. They allegedly also presented proofs regarding the same. However, neither GUVNL nor DGVCL officials were available for their comment on the issue.
Meanwhile Essar officials claim that the incident was the result of a misunderstanding. They denied any wrong doing on the company's part and said GUVNL and DGVCL employees were misguided, during the meter reading and this is how the whole incident got blown out of proportion.
"We have our own 1000 MW capacity electricity plant, which satisfies most of our power needs. Then why do we need to misuse the government's resources? The issue cropped up because the power company employees incorrectly interpreted the information. We have done nothing wrong," the company's spokesperson, said. Interestingly, he wished to remain anonymous. Sources said Essar has initiated the process to resolve the issue at the earliest. Company officials have allegedly met GUNVL and DGVCL officials to come to arrive at a settlement in the case.
