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

Mumbai, Oct 29 (IANS) 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 well-known 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 years.


The company is Pravara Renewable Energy Lt. (PREL) -- part of the Mumbai-based Gammon India Ltd conglomerate -- which had set up a 32-MW power generation plant at the Padmashri Dr. Vitthalrao Vikhe-Patil Sahakari Sakhar Karkhana, (PDVVPSSK/Karkhana) in Ahmednagar, helmed by senior BJP leader Radhakrishna Vikhe-Patil.

Incidentally, he is a grandson of the legendary Dr. Vitthalrao Vikhe-Patil who founded Asia's first cooperative sugar mill; a son of former Union Minister the late Balasaheb Vikhe-Patil and the uncle of (Ms.) Nila Ashok Vikhe-Patil, who is the high-profile Political Advisor to Sweden Prime Minister's Office.

Last 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 said.

When contacted, Radhakrishna Vikhe-Patil declined to comment on the matter on grounds that it is before the consideration of the courts.

"Since the matter is already sub-judice, it's 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 Vikhe-Patil told IANS.

The Ahmednagar plant was set up on a BOOT (build, own, operate, transfer) basis with a 28-year period of concession, including three years for construction, according to Mineel Mali, Director, AJR Infra and Tolling Ltd., the PREL's promoter.

As per the agreement, the PREL set up a state-of-the-art 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 coal.

As 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 factory's consumption and also for sale to the MSEB.

However, in the past over six years, the Karkhana has defaulted by its failure to provide the PREL with over 5.70-lakh tonnes bagasse, Mali contended.

This in turn, caused a massive reduction in the power plant's electricity generation and its production fell short of a whopping 2.56-lakh MW, worth around Rs 170-crore in the past six years, causing huge stress.

All 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 company.

Hoping to settle the issue amicably, the PREL Director S.K. Vats in August 2021 shot off a strong letter to the Karkhana's then Managing Director, (the late) T.R. Dhone, demanding suitable "compensation" for its gross losses of over Rs 170-crore.

The PREL officials have charged the Karkhana of resorting to 'strong-arm tactics and intimidation' to drive away their staff and allegedly grab the full-fledged functional power plant set up at the company's expense, but Radhakrishna Vikhe-Patil declined to comment on this too.

The 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 benefits.