The Hindu 19.02.2010
Corporators contest Real Energy’s claims
Special Correspondent
| CPI(M) objects to the presence of the company’s representatives at meet |
VMC can save Rs.2.4 crore because of the project, says CEO
Performance of the company will be observed for one more month, says Mayor
VIJAYAWADA: A meeting convened by Mayor M.V. Ratna Bindu with corporators, officials and representatives of Real Energy on Thursday to find a solution to the alleged failure of the firm in maintaining street lights and saving power, ended without being able to find any solution.
During the two-hour-long meeting, corporators of all the political parties expressed lack of faith in the “claims” made by Real Energy Chief Executive Officer K. Vijay Kumar that the firm was performing well and adhering to the terms and conditions of the agreement signed with the VMC.
The Mayor convened the meeting as a follow-up to the promise she made during the last general body meeting when the issue was debated at length.
CPI(M) corporators led by their floor leader Ch. Babu Rao objected to the presence of Real Energy representatives when the meeting was convened essentially for the corporators.
Even as the objection was overruled and Mr. Vijaya Kumar was allowed to make a detailed presentation, several corporators kept raising objections and doubts about the claims made by him.
Street lights
Mr. Vijaya Kumar claimed that all the 28,000 street lights functioned on February 16 and the company had been having a centralised computer information system in place for the last two years.
He also said that the VMC could save Rs.2.4 crore because of their project, including the Rs.95 lakh paid to the VMC out of the power saving.
At one stage, Executive Engineer-II Om Prakash admitted that the VMC had done the mistake of taking only Rs.15 lakh when Rs.50 lakh was supposed to have been taken as performance guarantee from the Real Energy.
Congress corporator Sistla Ramalinga Murthy sought to know why the company was referring to Vijayawada as its headquarters when at the time of bidding and during a visit of corporators Nashik was shown as the corporate headquarters.
Ms. Ratna Bindu said that the performance of the company would be observed for one more month, at the end of which a decision could be taken on whether to cancel the contract or not.
CPI(M) demand
Mr. Babu Rao insisted that the ruling Congress implement the resolution passed earlier by the general body, as per which the VMC should immediately take over maintenance of street lights by divesting the Real Energy of the responsibility.
