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Millennium Post

Damodar Valley Corporation chairman under CVC scanner

The Central Vigilance Commission (CVC) has received several complaints against the Damodar Valley Corporation (DVC) chairman RN Sen in connection with technical and financial irregularities in the public sector undertaking. While an RTI reply has confirmed that CVC has received complaints against Sen on various issues, a vigilance report sent to the Ministry of Power in 2012 against Sen finds some other allegations ‘true’.

In a reply to RTI applicant Gurnek Singh Brar, CVC said, ‘The CVC has received number of complaints against RN Sen, chairman DVC, relating to irregularities in Raghunathpur Thermal Power Plant, harassment of PP Shah, officer of DVC, irregularities in engagement of various advisers, irregularities in award of over hauling work of turbine in BTPS and harassment of AK Jain, officer of DVC.’

Whereas examination of two complaints are under process, a third complaint is under consideration of CVC.
Millennium Post has also learnt about a separate complaint with another set of allegations made to the Ministry of Power in January 2012 regarding ‘Technical and Financial irregularities’ in DVC. This complaint was also against DVC chairman RN Sen. The vigilance report which was prepared in view of this complaint and was shared with Ministry of Power had concluded that allegations were indeed factual.

Pointing out the irregularities committed by the DVC, the vigilance report states that consultants/advisers in the DVC were selected in a non-transparent, arbitrary and ad hoc manner and in violations of the rules. Since July 2011, eighteen consultants were appointed on nomination basis through the committee.
It also mentions discrepancies in import of coal at high prices on Sen’s instructions. ‘Specification of imported coal was changed without prior approval of the board as despite board’s approval for fresh tender for procurement of coal the specification was changed in the backdrop of discussions with the chairman. As far as pricing is concerned, even after evaluated rate of imported coal was brought down substantially it still was much higher in comparison to concluded rates for NTPC, Jhajjar and NSPCL, Bhilai,’ the report alleges, adding that, ‘Time for submission of bid was extended for only five days in violation of the provisions and hence timeliness for submission of bid were not maintained and MMTC was selected as service provider.’ MMTC officials met the chairman DVC and director (technical) before the finalisation of the revised prices.

To the complainant’s allegation that ITI was engaged for e-tendering solution on nomination basis, the vigilance enquiry found out: ‘The order placed on M/s ITI for e-tendering solution on single tender and nomination basis was without proper verification of the credentials. ITI
don’t have its own software and they failed in execution of the contract awarded by Patna Municipal Project for e-governance with e-tendering system in 2007.’

The report also pointed out the engagement of M/s NBCC as an implementing agency for executing the work amounting to Rs 117 crores despite the stay by earlier two chairmen on working with NBCC.
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