CSE PRESS STATEMENT: Centre for Science and Environment (CSE) responds to the weak and unsubstantiated defence put forward by LANCO and NTPC Vidyut Vypar Nigam Limited to its investigation on the solar scam | Centre for Science and Environment


CSE PRESS STATEMENT: Centre for Science and Environment (CSE) responds to the weak and unsubstantiated defence put forward by LANCO and NTPC Vidyut Vypar Nigam Limited to its investigation on the solar scam


New Delhi, February 2, 2012

Blasts LANCO’s duplicity and NVVN’s non-transparent attitude


LANCO Infratech has issued a statement that it has “serious objections” to CSE’s allegations on how it has illegally cornered large parts of the projects under the National Solar Energy Mission.

Interestingly, LANCO has not denied the allegations. It has also accepted that it has 'supported' the bidders, and that it has “equity participation within the permissible level”. However, the fact that is missed is that CSE’s investigation has blown the cover on the nature of this “support”.

The support of LANCO to the seven companies goes beyond ‘equity’ participation. In fact, LANCO, through its employees and their children, has gained controlling interest in these companies. CSE’s investigations reveal that LANCO controls 99 per cent of the seven companies through compulsorily convertible preference shares -- in two companies, it actually controls all the shares through their employees or their relatives.

According to the guidelines issued by the Ministry of new and renewable energy (MNRE), the controlling shareholding of the company that has won the bid should not change for one year after commissioning of the project. But CSE’s fact-finding clearly shows that the companies have changed hands and are now fully (99 per cent) controlled by LANCO. This is a clear violation of the guidelines.

CSE is even more appalled with the response of NTPC Vidyut Vypar Nigam Limited (NVVN). NVVN was non-transparent and still remains non-transparent. Its response shows that it is preparing to do a major cover-up of the scam.

It has still not put any information about these companies in the public domain. It is indeed strange that even basic information like the addresses of companies that have been awarded projects, has not been made available. It is clear that the addresses remain unavailable because these companies either do not exist or have ceased to exist. This is also what was found by CSE researchers when they visited registered offices of the companies.

We demand that NVVM and the ministry (MNRE) put all information including who controls these companies, in public domain.

At the same time, we welcome the statement made by the Ministry of new and renewable energy to investigate this matter further. We hope this will really lead to a clean energy source with clean companies.


• For the report of the CSE investigation (carried by Down To Earth), our press release, and other related information, please visit www.cseindia.org
• For any more details, contact Souparno Banerjee at souparno@cseindia.org / 9910864339.

 

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

Announcements

  • Centre for Science and Environment (India) and MESHA Kenya invite African journalists

    Nairobi, Kenya 

    February 27, 2015

  • Date: May 2015-July 2015

    Centre for Science and Environment (CSE) is a New Delhi-based public interest research and advocacy organisation and is the recipient of the prestigious Stockholm Water Prize. It was recently ranked 17th among a global listing of top environmental think tanks in the Global Go To Think Tank Index, compiled each year by the Think Tanks and Civil Societies Program of the University of Pennsylvania in the US.. 

Follow us on
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
gobar times