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May 22, 2001
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Orissa to take legal action against AES representative

M I Khan in Bhubaneswar

Even as the deadlock between the Orissa government and the American power giant AES Transpower continues, the state government has decided to take legal action against the AES representative Grayson Harvell, who is the managing director of Orissa Power Generation Corporation.

Grid Corporation of Orissa Limited chairman and managing director Priyabrata Patnaik said that the state government, along with GRIDCO and OPGC, had decided to take legal action against Harvell.

Patnaik told rediff.com on Tuesday: "We have no option but to take legal action against AES representative Harvell as he violated the instructions of the state government, as well as the board of directors of GRIDCO and the OPGC, to resume immediate generation of power at the second unit of the OPGC Ib Thermal power plant which was arbitrarily shut down by Harvell on Saturday."

The reason for the shutdown was non-payment of electricity bills by GRIDCO, the bulk supplier of power to four private distribution companies in the state including one owned by AES.

"Harvell has violated the power purchase agreement and grid code agreement between GRIDCO and OPGC by shutting down the power plant without consulting us," he said.

Orissa Energy Minister A U Singhdeo held a high-level meeting with top officials of the energy department, GRIDCO and OPGC on Tuesday to take stock of the situation after no indication of resolving the issue.

Patnaik said that there is no indication from the AES representative to resolve the issue.

"It seems that there is 'some gameplan' in it," he said.

The state government's nominee in the OPGC board passed a resolution on Monday directing Harvell to resume immediate generation of electricity.

Besides, Singhdeo has also directed him for immediate operation of the second unit which was 'deliberately shut down'. But till Tuesday afternoon the power plant had not been made operational.

Sources in the state energy department said that the state government was embarrassed by Harvell, who refused to make the power plant operational.

Patnaik had earlier asked the state government to arrest AES representative Harvell under the Essential Services Maintenance Act for shutting down the power plant.

AES has a 49 per cent stake in the OPGC, whereas the Orissa government holds the remaining 51 per cent. While AES retains the post of the managing director, the chairman's post is with the government.

Harvell, meanwhile, remains incommunicado. rediff.com's repeated efforts to contact him proved fruitless as his private secretary at plant in Jharsuguda district said: "He has gone to Bhubaneswar."

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