The import of costly coal by Andhra Pradesh Power Generation Corporation (APGENCO) is slowly snowballing into a major controversy. After a heated debate in the state Assembly on the alleged scam in import of coal when cheaper coal is available in India, today, government of India former power secretary Dr EAS Sarma also felt that the transactions involved in the coal imports need a thorough investigation. Suspecting a deliberate move to pay higher price than the price offered by Coal India Limited (CIL) for equivalent quantity, Dr Sarma said the expensive imported coal was imposing heavy burden on power consumers in the state and it was, he said, ” unconscionable”.

Writing a letter to Ajay Jain, principal secretary, power, the former power secretary said the AP GENCO was paying coal transportation charges three times more than the charges being paid by its counterparts in Tamil Nadu and Telangana.

“The latest I hear about the machinations of APGENCO are far more distressing. APGENCO is trying to divert the coal it has contracted from CIL subsidiaries (Mahanadi Coalfields) to the Hinduja company. Such a diversion of coal violates the Fuel Supply Agreement (FSA) that APGENCO has entered into with the CIL subsidiaries. Also, it will force APGENCO to move away from indigenous coal in favour of imported coal, a transaction that raises serious doubts about its propriety. The moves being made by APGENCO also impose an undue additional burden on the electricity consumers,” he said in the letter.

He demanded a vigilance investigation into three ” dubious “issues in the interest of electricity consumers in the state. They are: (i) coal transportation contracts, (ii) coal imports, and (iii) diversion of coal to Hinduja.

Dr Sarma urged the chief Secretary, and principal secretary (Finance) will quickly intervene and stop APGENCO’s questionable efforts to burden the consumers.