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GRIDCO chief calls for AES representative arrest in Orissa

Imran Khan in Bhubhaneshwar

The standoff between the Grid Corporation of Orissa Limited (GRIDCO) and American power giant AES Transpower took a new twist with GRIDCO chairman and managing director asking the state government to arrest AES representative under Essential Services Maintenance Act (ESMA).

The chairman and managing director of GRIDCO Priyabarat Patnaik has reportedly recommended the state government to arrest the Orissa Power Generation Corporation (OPGC) managing director Grayson Harvell under ESMA. AES Transpower is a 49 per cent shareholder in OPGC.

In a hard-hitting letter to the state government, Patnaik said that this is a fit case to book the OPGC managing director Harvell under ESMA.

AES Transpower Corporation shut down one of the two units of Orissa Power Generation Corporation's (OPGC) thermal power station on Saturday without consulting the state government, the major shareholder of the joint venture, official sources said.

Irked by AES's unilateral and arbitrary shutdown of the OPGC's power plant, GRIDCO has threatened to take legal action against AES, sources said.

According to sources in the state energy department, the reason for shutdown is non-payment of electricity bills by GRIDCO, the bulk supplier of power to the four distribution companies in the state.

GRIDCO has taken strong exception of the unilateral decision by AES, which violates the power purchase agreement.

"We are not going to resume normal operation of the second unit due to non-payment of electricity dues as required by the power purchase agreement," said Harvell in a letter to Patnaik.

The energy department has already sought a clarification on how such an important decision was taken without the approval of the board of directors.

In the Enron-Maharasthra government imbroglio, Dabhol Power Corporation sent a preliminary termination notice to Maharashtra State Electricity Board on Saturday.

GRIDCO has taken strong exception to AES's unilateral decision in the OPGC matter. The energy department has already sought a clarification as to how such an important decision was taken without the approval of the board of directors.

Energy secretary D N Padhi said that the decision to close down one of the two units is illegal as per the shareholders agreement.

However, the state government's muted response to AES's arbitrary action has not only surprised GRIDCO but also raised many eyebrows in the state.

Contrary to the AES stand to shut down the power plant for non-payment of electricity bills by GRIDCO, Patnaik said that GRIDCO owes Rs 1.42 billion to OPGC while AES, the major shareholder of CESCO, one of the private power distribution company in the state, has an outstanding arrear of Rs 3.94 billion towards power bill.

It may be recalled that the two units of the OPGC power plant were shut down for two days last April following mass leave by the OPGC engineers protesting the highhandness of AES officials.

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