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Mahagenco to review coal handling contracts

Energy minister Chandrashekhar Bawankule has asked Mahagenco to review its coal handling contracts. At present, the coal handling work is being done by Nair Coal Services, Naresh Kumar & Co and Karam Chand Thapar Bros. The job of the agents is to ensure that Mahagenco gets adequate and quality coal from mining companies and it is transported smoothly to the power plants.

The directive comes following an order passed by Competition Appellate Tribunal (Compat) instructing director general of Competition Commission of India (CCI) to conduct an enquiry into the coal handling contracts. The Compat had found evidence of cartelization in the contract. A mediaperson had also lodged a detailed complaint with Bawankule against the coal liaisoning agents.

Mahagenco managing director Bipin Shrimali told TOI, "We have been asked by the minister to review the contracts. As on date, there is no decision to terminate the contracts."

A Nagpurian, Surendra Prasad, had filed an appeal in Compat alleging that the three liasoning agents had formed a cartel and Mahagenco was not allowing any other company to do coal handling work.

The history of Mahagenco's coal handling contracts is quite controversial. In March 2005, Mahagenco floated tenders for coal handling contracts. BSN Joshi emerged the lowest bidder but work was not given to him on technical grounds. Joshi approached the Supreme Court, which ruled in his favour and directed Mahagenco to give him the job. Mahagenco followed the court directive only after Joshi filed a contempt petition in SC. The then managing director Ajoy Mehta had to tender an apology before the Supreme Court.

source: http://timesofindia.indiatimes.com