Poor Quality of Work & Delay in Projects No Constraint For MEIL to Bag 12K worth Nuclear Project
Megha Engineering and Infrastructure Ltd (MEIL) secured a lucrative project worth Rs 12,800 crore to construct two 700 MW electrical reactors at Kaiga in Karnataka. The tender was floated by the Nuclear power Corporation of India Ltd (NPCIL) for this project on an engineering, procurement and construction (EPC) basis in May 2023. This was the highest valued tender ever rolled out by NPCIL.
MEIL became the lowest bidder of the project by defeating Bharat Heavy Electricals Ltd (BHEL) and Larsen & Toubro (L&T). Located in Uttara Kannada district, Karnataka, the Kaiga nuclear plant currently has an installed capacity of 880 MW, comprising four units of 220 MWe pressurised heavy water reactors. The new project contract involves the construction of two additional PHWR units.
MEIL is the second largest donor of the electoral bonds that came into limelight after the bonds data was made public by the State Bank of India on the Supreme Court’s order. The director of MEIL said that this contract was a strategic entry of the company into the nuclear energy sector.
After bagging the project, MEIL told media that its ‘commitment to excellence and innovation has been recognised through this landmark achievement’ but in reality 90% of MEIL’s projects are clouded with controversy for poor quality of work, delay in project and increasing the cost of the project after securing it from the government.
In February a Public Interest Litigation (PIL) was filed in the Bombay High Court by Hyderabad-based journalist V. Ravi Prakash, represented by senior advocate Prashant Bhushan. The PIL seeks an investigation by the CBI or the creation of an SIT to probe the alleged fraudulent bank guarantees (BGs) accepted by the Mumbai Metropolitan Region Development Authority (MMRDA) from MEIL, involved in the construction of the Twin Underground Tunnel between Thane and Borivali, worth around Rs 16,600 crore.
In yet another project, MEIL allegedly looted Rs 1,00,000 crores taxpayers in the Kaleshwaram project that has not yet been completed by the company. MEIL was raided by the Income Tax Department in connection with the contract for construction of the Kaleshwaram Lift Irrigation Project, one of the largest lift irrigation projects. The CAG report on the project had accused MEIL for inflating the cost of the project.
MEIL was exposed for its lack of safety and poor quality standards when a high retaining wall collapsed at Nagarjuna Sagar Dam’s Sunkishala project. The opposition leader K.T. Rama Rao of Bharat Rashtra Samithi (BRS) blamed Congress government for its negligence in overseeing the project works. He demanded blacklisting of the company to which the contract was awarded, indirectly linked to Megha Engineering company.
A matter in the Supreme Court against MEIL demanding court monitored Central Bureau of Investigation (CBI) probe in the Palamuru Ranga Reddy Lift Irrigation Project (PRRLIP) is pending since April 2024. The estimated cost of the project was Rs 5960.79 crore in December 2015 as per the Engineering Staff College of India (ESCI). In January 2016, the estimates for the four packages were revised to Rs 8386.86 crore by the advisor of the project. The new estimate showed a whopping increase in the cost by Rs 2426.07 crores. The petitioner had demanded CBI investigation into the alleged irregularities and illegalities in the process the cost of the PRRLIP project was increased.
Despite a scandalous track record, MEIL continues to bag expensive government projects because of its close proximity with bureaucrats and the ruling government.
Sources:
- MoneyControl: MEIL Bags Nuclear Power Generation Deal Worth Rs 12,800 Crore
- Swarajya: MEIL Wins Landmark Rs 12,800 Crore Contract to Build Two Nuclear Reactors in Karnataka
- Economic Times: MEIL Emerges Lowest Bidder for Rs 12.8K Cr Nuclear Project
- The News Minute: MEIL Wins Rs 12,800 Crore Nuclear Project in Karnataka