• In what could be an embarrassment to the State’s power managers, it is certain to miss the October 2015-deadline by an estimated three years, for setting up of a 350 megawatt gas-based power plant to utilise gas supplies from the Dhabol-Bidadi gas pipeline.
  • It could mean that the State exchequer may have to pay Rs. 226 crore a year as transmission charges to Gas Authority of India Ltd. after the expiry of the deadline, even though the gas cannot be used till the plant is set up.
  • After awarding of the contract for the proposed Bidadi plant ran into legal wrangles the State government opted to dismantle the 128 MW diesel power plant in Yelahanka and set up a 350 MW gas cycle plant.
  • The Energy Department even circumvented the Karnataka Transparency in Public Procurements (KTPP) Act, 1999 for awarding contracts to set up the plant in Yelahanka to Bharath Heavy Electrical Ltd. (BHEL) on July 1, 2014, citing that the tender process would delay the project.
  • Though exemption was granted in July, Karnataka Power Corporation Ltd. (KPCL) is yet to give a Letter of Intent to BHEL, which has sought 30 months for completion.
  • It was only in its December 22 board meeting that a resolution was passed to hand over the project to BHEL
  • KPCL officials claim the delay was due to the time involved in BHEL coming up with a proposal.
  • KPCL Managing Director M. Maheshwar Rao told they would approach GAIL for reworking the Gas Transmission Agreement.