Dimapur, March 21 (MExN): The Power Department has clarified on the various allegations of discrepancies as well as expressions of disapproval from sections of the public in the aftermath of Likimro Hydel Power Project being privatized by the Government of Nagaland as reported earlier in this paper.
Offering details on the background of the project Chief Engineer, Power department, Kohima stated that the project was constructed and completed at an estimated cost of Rs. 192.27 Crores on Generation and Rs. 34.11 Crores on associated Transmission Lines from Likimro to Kiphire to Kohima. 2 units of the project were commissioned in Feb 2002. The 3rd Unit could not be commissioned since it was involved in an accident during transportation to site, but subsequently repaired. After a brief period of 6 months operation, the 2 units failed to generate due to damage to the bearing during Grid instability compounded by deficiency in trained manpower for running the sophisticated machinery. The project has been restored and only 1 unit is generating 4-5 MW at present due to less water in the river, it was clarified.
On the invitation of Tenders for the project, the department stated that the machines and equipment in the project were required to be in operation for 24 hrs. Basic/major spares, daily maintenance of all civil infrastructures, electro-mechanical and Switchyard are essential requirements to keep the plant up running. The project should also be manned by trained professionals to operate the complex and sophisticated machinery. Basic amenities and facilities do not exist in the project areas. The project is also situated in one of the remotest corners of the State accessible by fair weather roads from Kiphire and Longmatra.
Reacting to reports that a project of Likimro capacity does not require large manpower or expert from outside and that only a simple control panel is required to control the entire project the department reminded that the project generates electricity mainly due to the potential of more than 700 meters head, Asia’s second highest. “The control systems are all programmable and features one of the most advanced technologies available at the time of procurement. The 3 kilometers length Power Channel, 2.3 Km Length Penstock, 3 units of 8 MW TG sets and 9nos of Power Transformers including breakers and associated equipment of the Switchyard require a minimum of 40 numbers of trained professionals to work on shift round the clock” it was pointed out.
The Chief Engineer, Power Department informed the under the existing scenario even to replace a small part costing a minimum of Rs. 1000 to Rs. 1 Lakh, a lengthy process was involved before making the funds available and till such time, spanning as less as two months to 6 months or worse 1 year if import is involved, the project could remain idle. Therefore the State government decided to invite a technically competent and financially sound firm for taking over of Operation and Maintenance of Likimro Project. “By this not only the State government be relieved of further investment in the project but also benefit from saving of power purchase cost from outside the State through its generation.
Therefore in the interest of reaping benefit from Likimro, invitation of bid was made to get the best bargain out of the bidders” the clarification maintained.
Relatively, five firms responded to the invitation of bids namely M/s Swamina International Pvt. Ltd. Kolkata, M/s Nagaland Builders Pvt. Ltd Kohima, KC Associates Dimapur, NEC Energy Pvt. Ltd N. Delhi/Gurgaon and Sovika Techincal Services Pvt. Ltd. N. Delhi. On the basis of evaluation it was stated that since conditions for biding were not imposed on the bidders, they were at liberty to offer in any arrangement favorable to them and the government/department which means the offer can be one of monthly charges basis, annual contract basis or Lease basis. The Ultimate objective of the government is the finished product out of Likimro i.e. electricity without the state having to invest any further for the upkeep of the power plant as a whole, it said.
On the bid offers the department stated it received mainly two types of offer for the O&M from all the 5 bidders’ i.e. Monthly charges basis and Lease basis.
It maintained that M/s Nagaland Builders participated with good spirit but without taking any risk for the upkeep of the power plant i.e. spares, repairs etc on electrical, mechanical and civil works, without which generation of electricity, even if the government/Department owns responsibility, cannot be assured.
It also refuted the comparative figures of cost of units in a local paper. “Because all the 5 offers were as diverse as the firms, making it impossible to arrive at the cost of unit for comparison and indicate either the lowest or highest bidder, it would be misleading to compare the cost of unit only on the basis of monthly charges to be paid to the firm without considering the investment required from the Government” the Department clarified adding that only the offer of NEC Energy Pvt does not involve any kind of investment from the government other than pay for the electricity generated at the rate of Rs. 1.65 as O&M charges. Since their scope of offer was found most favorable to the Govt., the rate was negotiated at Rs. 1.17 per unit, it said.
