Mr Rajiv Rattan re Mansa Power Plant - 26/08/2011

Mr Rajiv Rattan
Managing Director
Peona Power Development Project Limited
448451 Udyog Vihar

Gurgaon 122012

26 August 2011

Dear Mr Rattan,

Mansa Power Project

I note with concern that your company is acquiring land in Mansa district although none of the substantive regulatory clearances required have yet been obtained.

It is quite remarkable that the basis for the current land acquisition by the Punjab Government is solely a Memorandum of Understanding (MOU).

Your company is yet to negotiate and execute a Power Purchase Agreement (PPA) with the state. Consequently the project has no substance and it is quite remarkable that the Government of Punjab is prepared to acquire land for a project to which it has no contractual obligation to purchase any electricity generated.

The legality of such land acquisition is, therefore, questionable because in the absence of a PPA there can be no public interest, especially for a project that was not submitted to open competitive tender.

Without a PPA neither financial closure nor meaningful execution can take place. I am sure that you would agree with me that the only execution till date is the boundary wall.

No environmental clearance, no coal linkage; is there any real intent to build the project?

Your company should be aware that the decisions and actions of a government about to demit office are those that are routinely the first to be reviewed upon change of government. Rest assured that the political will that you may enjoy today will not last for long.

I note with concern that prior to the MOU you and your team held several meetings with Sukhbir Badal, Deputy Chief Minister, Punjab, at The Trident, Gurgaon, which is in close proximity to your offices and which, you may not be surprised to learn, is owned by the said Sukhbir Badal.

These meetings have not helped to dampen the swirl of speculation surrounding your project, not least the allegations that massive bribes have been paid to the ruling family / party so close to the forthcoming elections.

No open tender, premature land acquisition, inappropriate meetings at questionable premises, no regulatory clearances; no wonder there have been calls for the project to be cancelled and a CBI enquiry to be initiated.

I strongly request you to consider one of the following options:

1. cancellation of the project

2. substantially enhance the compensation to the farmers

3. relocate the project to an area where all farmers accept your terms voluntarily.


Jassi Khangura MLA (INC)
Halqa Qila Raipur

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