KOCHI: The Kerala High Court on Tuesday quashed a government order cancelling the sanction given to the KSEB to award a work under the Restructured Accelerated Power Development and Reforms Programme (R-APDRP), funded by the Union government, to a Korean company. The court also pointed out that the sanction of the state was not required in awarding the work.Justice P N Ravindran passed the order while considering a petition filed by Korea Electric Power Data Network Company challenging the government’s decision. Based on the terms of the tender notice, the court held that the state did not have the right to interfere. The Union Government had initiated the project with an aim to achieve reduction in loss during transmission and distribution of electricity. The petitioner said that the company was one of the empanelled implementing agency under the Power Finance Corporation, a nodal agency of the Central government. The tender was cancelled in the wake of allegations of corruption and lack of transparency in the tender process. The state government and the KSEB contended that the government, being a signatory to an agreement made in August 2009, was entitled to oversee the award of the contract. However the court said that the reason put forwarded by the government to justify the decision was not sustainable. “The role of the state was only that of a guarantor and its obligation was only to ensure the establishment of the State Electricity Regulatory Commission and the constitution of the Distribution Reforms Committee to monitor projects under R-APDRP. “As for the purchase, it was up to the board to take an independent decision. However, the board acted on the direction issued by the government,” the court said. The court further directed that the Government of India should extend the time for the implementation of the project in the state.
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