Shobha Karndlaje


BJP Karnataka

Tender Process for Purchase of 1,580 MW Power Scrapped

Bangalore, May 5: The B S Yeddyurappa regime on Thursday decided to cancel the tender process for purchase of 1,580 mw of power under a 25-year agreement with different companies and has opted for undertaking re-tendering process afresh.
The State Cabinet, which met with the Chief Minister presiding, opted for starting the re-tendering process as the prominent bidders had quoted prices which were in the higher range of 11 per cent to 22 per cent compared to those prevailing in States like Andhra Pradesh and Gujarat.
Karnataka’s Law and Parliamentary Affairs Minister S Suresh Kumar, who is also in charge of the Urban Development Department, told reporters that the State Cabinet wanted to ensure that the State was not unnecessarily burdened and also strictly adhere to the guidelines issued by the Union Energy Ministry.
Prominent companies like the Power Trading Corporation (PTC), JSW Energy and Jindal Power, which had participated in the bidding process had quoted unit price higher by 15 to 20 paise.
The Cabinet also decided to seek a Rs 450 crore loan from the World Bank to fund the ongoing Rs 1,400 crore underground drainage project being implemented by the Bangalore Water Supply and Sewerage Board (BWSSB) in Bangalore to meet the shortfall.
The estimated cost of the project increased from Rs 568 crore in 2004-05 to Rs 1400 crore.
In yet another decision, the Cabinet approved a proposal to permit the Karnataka Housing Board (KHB) to award a contract to a private company to build a 14-storey residential complex with 808 flats on a six acre land at Vadayarahalli in Kengeri on the outskirts of Bangalore at a cost of Rs 244.67 crore.
Suresh Kumar said 50 per cent of the flats will be reserved for those from weaker sections.
An eight-storey Silk complex would be built on 4.75 acres of land at Okalipuram in the city on land belonging to the Sericulture Department at a cost of Rs 30 crore.
While 50 per cent space in the complex would house various offices of the Department, the remaining portions would be rented out to public and private sector companies, the Minister said.
A decision has been taken to develop the memorial in honour of former Chief Minister late Devraj Urs and open a backward classes study centre at his birthplace of Kallahalli in Hunsur taluk of Mysore district.
The house of the former chief minister Devaraj Urs would be developed and his bust installed, for which Rs 2 crore would be released. Mysore Deputy Commissioner has been asked to prepare a project report in this regard, the Minister said.


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