Press Note 05/01/2011 Urja MoU Eng
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OFFICE OF THE LEADER OF OPPOSITION
Gujarat Vidhansabha, Gandhinagar.
Press Note 5th January, 2011
When it comes to power sector, it is only hollow talks and no action.
In Power sector alone, Modi government claimed to have attracted investments through 31 MOUs worth Rs. 2,11,895 crore that would generate employment for over 58,000 people! This was announced by the State government in 2009 vibrant gujarat summit. However none of these 31 MOUs have translated anything for the state and people of Gujarat. Rather, these companies have used Vibrant Gujarat as a platform to inflate their share values and attract financial institutions for more funding. Also, there have been cases of land grabbing through such project announcements.
Leader of the Opposition Shaktisinh Gohil has said that Modi has used this capital intensive industry that is power sector to blow up his investment figures.
Mr. Gohil said that despite the so called ‘interests’ expressed by the large number of companies during Vibrant Gujarat summits, it is important to note government of Gujarat end up tying up with Adani and Essar only !
Either the companies coming forward to sign MOUs are coming for the sake of just announcements only and to take undue advantage of the state resources or Adani and Essar are too influential that they block entry of others !
It is pertinent to note that the Gujarat High Court had observed t how the GUVNL, energy department have colluded with Adani group to weed out other bidders from the competition in power sector in the state.
Despite signing PPA with the state, Adani group had backed out from supplying power at cheap rates under PPA. However, after the Congress party raised the issue in the assembly in last budget session, Gujarat government was forced to fight the case and GERC has ruled against the Adani group.
Mr. Gohil also said that in a bid to give business through under table dealings, Modi government has already tied up for more than necessary power. Today we stand at a juncture where we will have to pay crores of rupees to the companies like Essar and Adani even if we do not buy power from them tomorrow.
Modi government is still planning and inviting companies to sign more power purchase agreement in the name of green energy promotion.
Here are some of examples of MOUs signed and nothing being done in the power sector.
I challenge the Gujarat government to give an explanation for this. If the CM represents the Common Man, he should come forward and join me for a public debate to discuss the status of these MOUs which simply exist on paper and are used to boost up the megalomaniac’s image and public perception.
We must not forget that Gujarat has already been allotted one ultra mega power project by the central government.
Gujarat is set to get more than 4000 MW power from UMPP that is being commissioned by Tata power in Mundra Kutch. The state has more than necessary power and still it is talking about more projects, which is an eye wash for the people of the state as it allows more corruption and under table dealings. Let’s not forget that energy department and sector are the epicenter of corruption in this government.
Details of MOUs in the Energy Department
| MOU Companies | Amount of Investments | Present Position |
| Abhinav Steels | Rs 1,250 crore | Not a single line on MOU’s with Gujarat, not even word Gujarat mentioned on this website |
| Universal Success Enterprise | Rs 50,000 | Mother of all the fraudulent announcements. It has not invested even 1% (500 crore) of its promised amount in VGGIS 2009. Neither employed even 150 people. |
| Adani Power | Rs 12,550 crore | No plans emerging on Dhandhuka and Dahegam while government gave away land for free for Mundra project. Now, Adani don’t want supply electricity to Gujarat consumers |
| Antai Balaji | Rs 75 crore | No website |
| Avantha Power | Rs 6,000 crore | What is the status of 660X2 units proposed units at Amreli? |
| Balaji Group | 900 crore | Has it acquired land and environment clearance? Where are the promoters from? |
| Canasia Power Corporation | 6,500 crore | It didn’t try for long term PPA with GUVNL. Was it just an announcement or the Canada based company was confident of not getting deal with Govt promoted venture because of competition from Modi’s favorite power players? |
| GMR Energy | 10,000 crore | The company is learnt to have wind up its plans for Gujarat. It also didn’t expressed any interests in selling power to GUVNL under long term PPAs. |
| GSEC & GSPC | 19600 crore & 7,000 crore | Saurabh Dalal himself told Engineers Association of GEB in Surat last month that Gujarat has access power and there are no buyers. What is the need for GSEC and GSPC to burn such money? Action should be initiated against GUVNL, GSEC and GSPC top brass for waste of public money or conspiring with Modi government for fake claims and misguiding people of Gujarat. |
| Indian Power Corporation | 6600 crore | The company claimed to be setting up power project in AHMEDABAD CITY!!!! Where? |
| Jagadhguru Technology Services | 500 crore | Has this company acquired land and environment clearances? It does not even have its own website! |
| JSW Energy | 7000 crore | The company made this announcement and raised sizable funds from the market through IPO in 2009. But we are yet to witness any concrete initiatives. |
| L&T Power Development | 15,000 crore | In exchange of this announcement GSPC gave orders worth crores to L&T for its KG Basin project, which is already incurring losses due to corruption. L&T Power Development has not invested even 1,500 crore for power generation in Gujarat |
| MOU Companies | Amount of Investments | Present Position |
| OPG Power Gujarat | 12,000 crore | In how many years OPG Power is going to invest this much money in power projects? It has a negligible presence in Kutch. Does OPG Power has strength to raise Rs 12000 crore? |
| Patel Energy Limited | Rs 2,200 crore | It is learnt to be interested in working in Tamil Nadu and no concrete plans in Gujarat yet |
| Rachana Group | Rs 9,200 crore | No work initiated yet, it remains just an announcement |
| Reliance Cementation | Rs 1,500 crore | No work initiated yet |
| Responsive Ind | Rs 10,000 crore | No work initiated yet, company focusing on its core business activities in vinyl, PVC |
| SHAPOORJI PALLONJI & CO | Rs 10000 crore | It has no plans to invest more than Rs 5,000 crore. It is commissioning 800 mw project to supply power to GUVNL |
| Shyam Century Infra | Rs 5,400 | It is developing project in Chhattisgarh and so far no progress in Gujarat. |
| Sterling Power SEZ | Rs 800 crore | Yet another multi-crore announcement from Sterling Group but yet to move any of its power projects |
| Torrent Power | Rs 10,500 crore | It is planning project in Dahej SEZ and Surat (SUGEN). Torrent has no immediate plans to commission any other facilities in Gujarat. It is yet another fake announcement to please the state government for land grabbing and inflate share value |
| Tuff Energy | Rs 3,930 crore | No work initiated yet |
| Videocon | Rs 3,000 crore | Videocon is contemplating a power project in Gujarat for almost five years now. But it has just acquired land and has not done any ground activities yet. The company has used VGGIS platform just to inflate its share price by making same announcement again and again. |
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To,
The Editor,
Hon’ble Leader of Opposition has requested to kindly publish this press note in your esteemed newspaper.
(J. J. Rasania)
Personal Assistant