The Great Cogeneration Scam

It’s a scam worth Rs. 5000 crores. It is also a classic case of how politicians create a situation and exploit it to their best. It also tells us why opposition parties don’t win elections even when ruling parties are impotent, busy serving own interests.

In this game, ruling parties calls the shots, to which opposition react in a customized way.
Initially, they create electricity shortfall. Then, just when we think of desperate measures to bridge power gap, these politicians come up with solution.

Solution: Politicians in power running the cooperative sugar mills are to generate some 1200 mw power by setting up cogeneration plants within their sugar factories. These politicians then allow 55 such factories, some of them controlled by ministers while few by opposition.

To set up plants, rulers make provision of subsidized fund worth Rs. 5000 crore. The capital and subsidy is to be borne by taxpayers. It is fine if the mills are to sell their power mandatory to state owned utility to meet shortfall.

But, mantris, tacitly change the original government resolution. They allow themselves to sell power in open market, which offers far higher rates and sell it in return with proportionate profits. This way, politicians indulge into profiteering.

Curiously, all through the process, opposition is conspicuously silent. No wonder they too have their share.

So while guarding the private interests, public interest sustains severely dent.

My report on this in Hindustan Times to read minister's reaction: