Published On : Tue, Dec 13th, 2016

Abhijeet Power will not be let off the hook from paying Rs. 910 crores fine assures CM

: In today’s proceedings of the Vidhan Sabha a question on Abhijeet power company was raised by Congress MLA Sunil Kedar, Opposition leader Radhakrishna Vikhe Patil and Amin Patel about the penalty of Rs. 910 crores raised on the company by MADC for non compliance of the terms of agreement.

Giving a written reply to the question the C.M. replied that Abhijeet would not be let off the hook and the sum decided on would definitely be recovered from them.

The background of the case
MADC has filed a petition with Maharashtra Electricity Regulatory Commission (MERC) for compensation claim because scrapping of agreement by Abhijeet Group, and other disputes.

It is worth mentioning here that MADC and Abhijeet Group had entered into an agreement in 2007 whereby Abhijeet MADC Nagpur Energy Power Limited company was formed. According to agreement, MADC had given land to Abhijeet Group for the power project.

In the first phase, two units of 50 MW each were to be installed. The power plant could have been extended upto 200 MW as per requirement. But Abhijeet Group installed four units of 56 MW each and without giving information, started selling electricity to Reliance Infra.

In November 2013, it also stopped giving electricity to Mihan without prior notice. A decision about filing compensation claim was taken in the board meeting of MADC held on July 4, 2016. Accordingly, vice-president and managing director of MADC Vishwas Patil filed compensation claim with MERC.

Taking these problems into consideration, MADC Board decided that since signing of the agreement, the company had failed to adhere to agreed terms due to which image of MIHAN took a beating and affected prospects of this ambitious project Accordingly Patil has took the decision to file petition seeking of Rs 910 crore damages with MERC, after a detailed discussion with the legal advisor.

Now MIHAN is getting power directly from Reliance Infra and Abhijeet is in the docks. The government is determined to get compensation from them.