In a legal bombshell, a former Agriculture Minister of Andhra Pradesh has taken the state’s power distribution companies to court. The issue arose when the three distribution companies (DISCOMs) namely; Power Distribution Corporation Limited (APEPDCL), Central Power Distribution Corporation Limited (APCPDCL) and Southern Power Distribution Corporation Limited (APSPDCL) sought to revamp the agricultural electricity distribution within the State of Andhra Pradesh and called upon tenders for the same, in furtherance of the Revamped Power Distribution Sector Scheme (RPDSS) promulgated by the Ministry of Power Government of India.
Accordingly, The Andhra Pradesh High Court has issued notices to the State, APEPDCL, APCPDCL, and APSPDCL following a Public Interest Litigation (PIL) filed by the minister. The PIL alleges that a tender for upgrading agricultural electricity meters to smart meters was awarded at a staggering 600% more than the price fixed by the Union of India.
Former Minister Approaches AP High Court Alleging Agricultural Electricity 'Smart Meter' Tender Awarded For '600% More Than Price Fixed By Union Govt' https://t.co/h9nSxlopaV
— Live Law (@LiveLawIndia) December 4, 2023
Background and the issue
The petitioner, a former Agriculture Minister, expressed deep concern over the manner in which tenders were awarded for revamping agricultural electricity meters. Agitated by what he perceives as a flagrant misuse of power, the petitioner has approached the Division Bench of Chief Justice Dhiraj Singh Thakur and Justice R. Raghunandan Rao, seeking justice against what he calls a “whopping price” decided by those in influential positions.
The controversy unfolded when three distribution companies—APEPDCL, APCPDCL, and APSPDCL—sought to revamp agricultural electricity distribution as part of the Revamped Power Distribution Sector Scheme (RPDSS). Launched by the Government of India, the RPDSS aims to enhance the quality, reliability, and affordability of power supply. However, the petitioner alleges that the tender decision was influenced by political figures, favouring a chosen contractor.
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Allegations
Political Interference: The petitioner contends that the decision to allot tenders was made to benefit a specific contractor, orchestrated by individuals in powerful positions. With the chairpersons of DISCOMs appointed through political interference, the petitioner claims that these companies are functioning at the behest of those in power, compromising fair practices.
Cost Discrepancies: The PIL points out a significant cost discrepancy, claiming that the Central Ministry of Power fixed the cost of the meters at INR 6000. The government, willing to contribute 15% of this cost, raised concerns over the tenders awarded to contractors quoting substantially higher prices. The petitioner also highlighted the Centre’s suggestion of alternative IRD Port Meters, significantly lower in cost than the controversial smart meters.
Financial Strain and Debt Clearance: The petitioner argues that the Power Distribution Companies, allegedly running losses of INR 84,183 crores, embarked on the smart meter scheme with the ulterior motive of clearing their debts. This move, the petitioner claims, has led to a hike in per-unit prices, making Andhra Pradesh’s rates the highest in the country.
Court’s Intervention and Future Proceedings
Given the gravity of the allegations, the Bench has issued notices, summoning responses from the concerned parties. The court has scheduled the matter for further hearing on 20th December, marking a pivotal moment in the fight against alleged corruption and mismanagement in the power distribution sector of Andhra Pradesh.
