NTPC JV NSPCL awarded routine maintenance work on nomination basis, ignoring CVC norms: CAG
State-run power giant NTPC’s joint venture NTPC SAIL Power Company had extended an undue favour to a private party by awarding routine maintenance work worth Rs 129.76 crore on nomination basis, ignoring Central Vigilance Commission (CVC) guidelines, government auditor CAG said. The work was awarded during 2013-14 to 2018-19, the Comptroller and Auditor General of India (CAG) said in its Report No.18 of 2020 tabled in Parliament on Tuesday.
“Undue favour was extended by the NTPC SAIL Power Company Ltd to a private party by awarding routine maintenance work valuing Rs 129.76 crore during 2013-14 to 2018-19 on nomination basis at a profit margin of 10 per cent of the contract price disregarding the CVC guidelines/public procurement regulations,” the report said.
NTPC SAIL Power Company Ltd (NSPCL), a joint venture of NTPC Ltd and Steel Authority of India Ltd (SAIL), is an electricity generating company with power stations at Bhilai, Durgapur and Rourkela.
According to the report, the NSPCL Board decided in August 2007 to enter into a Power Station Maintenance Agreement (PSMA) with Utility Powertech Ltd (UPL) to undertake various maintenance and miscellaneous works in line with the agreement made by NTPC.
The PSMA was finalised with UPL in January 2008 for 10 years but the same was terminated in May 2016 on mutual understanding of both the parties.
