TDP demands CBI probe into ‘transformer scam’

The senior TDP leader demanded an explanation from the State government for buying the transformers from select manufacturers based in Telangana and Andhra Pradesh, ignoring reputed firms across India. These manufacturers had formed a cartel and jacked up the prices of transformers abnormally, he charged.

‘Govt. paid at least 200% more’

The A.P. government paid at least 200% more for each transformer than what was paid by its counterpart in Telangana, Mr. Chandramohan Reddy said, adding that the government owed an explanation for this.

He recalled that the then TDP regime had imposed a penalty of ₹178 crore on a firm named ‘Sri Shirdi Sai Electricals’ for allegedly supplying substandard transformers. However, the Jagan Mohan Reddy government has suppressed the facts and awarded contracts to it though it was ineligible to participate in tenders, he contended.

Making a presentation, he said the price of a 25 KVA transformer had been jacked up to ₹1,78,800 under the YSR Congress Party regime (202223) from ₹58,569 under the TDP regime in 201819, an increase of 305%. Incidentally, the Telangana government had purchased the 25 KVA transformers for only ₹79,829 each during 202223, which reflects a price difference of Rs ₹98,971 and an escalation of 223.98%, he explained.

Similarly, a 63 KVA transformer was purchased for ₹2,81,000 by the YSRCP government while the rate during the TDP regime was ₹89,892 only, an escalation of 312.60%. In Telangana, the same was purchased at ₹1,22,936 only, a price difference of ₹1,58,064. In case of 100 KVA transformers, the cost was only ₹1.20 lakh per unit during the previous TDP regime and the present government bought the same at a whopping ₹3.58 lakh. In Telangana, its price was only ₹1,86,505. The 160 KVA transformers were being purchased for ₹6,36,000 now as against ₹2,00,790 during the previous TDP rule, an increase of 316.75%. Incidentally, Telangana procured the same for ₹3,13,533.

‘Blatant violation of norms’

Later, addressing a press conference at the TDP central office in Vijayawada, Mr. Chandramohan Reddy alleged that power projects costing about ₹76,000 crore were awarded by the State government to Indosol Solar Pvt. Ltd. in blatant violation of norms as the company belongs to Y.S. Jagan Mohan Reddy’s close acquaintances. These persons also own Sri Shirdi Sai Electricals and Aurobindo which benefited hugely from the projects given to them as per the Chief Minister’s whims and fancies, he alleged.