The parliamentary committee also directed the government and the Energy Ministry to do the needful for immediate initiation of long-term projects like 750 MW West Seti following a meeting on the present state of load-shedding, its financial, social and industrial impacts and the option of thermal plant.[break]
The parliamentarians came down heavily on the ministry´s enthusiasm to bring diesel plants immediately and minced no words in saying that commissions may be the driving force in the haste during the meeting also attended by Energy Minister Posta Bahadur Bogati, Energy Secretary Balananda Paudel, and Officiating Managing Director of NEA Rameshwar Yadav.
“I was offered commissions amounting to around a billion rupees when I was Minister of State for Energy,” parliamentarian Ramji Sharma, who worked with Gokarna Bista in the Energy Ministry in the previous government, said. “I don´t doubt your integrity Mr Minister but I can tell you that those who are suggesting to you to bring diesel plants are certainly motivated by commissions,” Sharma added.
Prakash Chandra Lohani went further and expressed suspicion on why Maoist leaders always looked so eager about bringing diesel plants. “I remember Pushpa Kamal Dahal declaring that diesel plants of 200 MW would immediately be installed when he was prime minister. And now you also look determined to bring diesel plants,” Lohani stated.
Lohani was the one to suggest to the ministry to look at the option of coal plant which, he claimed, can be generated at around the same cost as hydro-electricity and asked why the minister was not even considering the option and seemed hell-bent on bringing diesel plants. Energy Secretary Paudel conceded that coal is a cheaper option but pointed out that even India is importing coal from other countries.
Lohani, who had gone out when secretary Paudel addressed the issue of coal, argued that India is not self-reliant on even petroleum products and we can import coal from other countries when a fellow parliamentarian relayed Paudel´s response after he returned to the meeting.
Ministry presentation unconvincing
The Energy Ministry made presentation about the installation cost of diesel plants, its operating cost and also elaborated on the possibility of importing more power from India during the meeting. Most of the PAC members who spoke at the meeting said bringing diesel plants would sound death knell for NEA which is financially reeling and in the words of secretary Paudel, who is also the chairman of NEA Board, is virtually bankrupt due to deferred payments of over five billion rupees apart from the accumulated loss of Rs 27.53 billion.
The installation cost of 100 MW latest-model diesel plant, as proposed by the ministry, is around six billion rupees and operating the 100 MW plant for just five dry months, the ministry conceded, would incur loss of at least Rs 4.36 billion.
The ministry explained that around 40 MW in addition to the current 132 MW can be imported within the next four months while another 145 MW can be imported by the peak of the next dry season. The ministry´s presentation itself, citing Nepal Oil Corporation officials, said that construction of one million liter storage tanks for seven days at four places, where the diesel plants would be kept, will take at least one year if the process of public procurement was simplified.
Yet Minister Bogati claimed that the decision to buy diesel plants was intended to limit the load-shedding, that is expected to go up to 19 hours a day at the peak of this dry season if not addressed immediately, to 10 hours a day at the peak of this dry season.
"I have never claimed that bringing diesel plant is the best option. But I have been forced to take this unpopular and expensive decision for the greater good of the people and country,” Minister Bogati insisted in his response to the parliamentarians. “I am not the one to put awkward issues to the back-burner and tackle just the easy ones,” he seemed determined.
He claimed that he has not been offered commissions for buying diesel plants and has no knowledge of it. “We can address the issue of commissions whenever it arises,” he added and requested the PAC members to inform him if they see anything suspicious in the future.
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