During this Jagan government period, one of the high-ranking officials in the Southern Power Distribution Company Limited (SPDCL) has been accused of extensively succumbing to favoritism in behalf of YSRCP-sponsored ventures. According to reports, it was claimed that he was extensively involved in creating bank balance for the power companies through claimed operations efficacies. His involvement ranges from transformer procurement process to substation project and awarding other contracts in major areas, where he was accused of mismanagement and pervasive favoritism.
This officer has been said to have close relations with Shirdi Sai Electricals, a firm of the joint Kadapa district, which has thus monopolized the energy sector. It is alleged that even after the change of government, contracts like a recent one for 5,000 transformers worth ₹70 crores were given without competitive tenders. This is also a continuation of favoritism.
Accusations against the official are of buying transformers and equipment at inflated rates. Recent reports reveal 6,200 transformers orders were placed under "repeat orders" bypassing standard tendering procedures. Of these 5,000 units are sourced from Shirdi Sai Electricals, while others are distributed to other firms.
It has been observed that the tender for the supply and installation of smart meters for 18.58 lakh agricultural electricity connections cost a total of ₹5,692 crores. The highest amount of payments worth ₹679 crores were allegedly done for the equipment which are just lying in the storage of Pileru, Madanapalle, and Anantapur districts since they have been bought on over-priced transformer purchases.
Further analysis shows that 16 and 25 KV transformers were purchased at double the going market rates. For example, while Telangana DISCOMs bought similar transformers for ₹64,000, SPDCL is said to have bought them at ₹1.40 lakh each. These high costs have resulted in overstocking, with 20,000 transformers said to be lying unused.
Allegations also include the appointment of staff on recommendations from influential political figures like MP YS Avinash Reddy. The unnecessary projects initiated, reportedly, to benefit YSRCP-linked contractors include the replacement of cement pillars with tower works in Rayalaseema districts.
This official's tenure is marked by an unprecedented role as CMD across three DISCOMs simultaneously, a record in the energy sector. Critics argue that his close association with Shirdi Sai Electricals played a significant role in securing these positions.
From paying ancillary equipment bills to ensuring smart meter-related issues were addressed at SPDCL, the official's actions all seem to be working in favor of Shirdi Sai Electricals. He has also filled key positions with personnel reportedly aligned with the company.
These were said to be misused under the garb of accident control for justifying unnecessary works and thereby pushing up the cost of the projects. These are said to have brought considerable benefits to the contractors.
These grave allegations did not elicit any effective action against the official. The unaccountability of this is seen to be causing more and more criticisms about governance standards in the energy sector.
