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Headlines       Vol. 2 Issue7-8        June 22- July 6 , 1999

CBI to investigate the 1996 Arunachal power scandal

The Arunachal Pradesh Government has decided to hand over to the CBI the investigation into the power scandal of 1996 which cost the State exchequer several crores of rupees.

Minister of State for Personnel and Administrative Reforms Takam Sanjay said that the Union Home Ministry was yet to issue notification of the State's decision to extend the Delhi Police Establishment Act, 1946 to Arunachal Pradesh. But the State cabinet in anticipation of the Centre's notification, had decided to hand over the case to CBI.

The former cabinet under the leadership of Gegong Apang had disapproved the recommendation of the cabinet sub-committee and declined to involve the CBI in the power scandal in the State.
The award of nine micro-hydel projects on turnkey basis to M/s Boving Fourses Company and M/s Subhash Project Marketing Company Limited would come under the ambit of CBI investigation, Mr. Sanjay said.

The CBI would also investigate the award of work of two transmission lines to M/s Horizon High-Tech Engineering Company Private Ltd., bypassing the lowest bidders to construct 132 kv transmission line from Deomali to Namsai and Jang to Tenga.

The original bid for the work from Deomali to Namsai was Rs. 28.53 crore and Jang to Tenga was Rs. 28.39 crore while these were awarded at the rate of Rs. 45.39 crore and Rs. 34.54 crore respectively, he said.

The Mukut Mithi Government also found discrepancy in supply of ten sets of 20 kw light-weight hydel sets in 1995 by M/s M. R. Power Project, Guwahati at exorbitant rate without receiving formal approval from the government.

This caused a financial loss of Rs. 1.38 crore to the State exchequer, Mr. Sanjay said, adding that the CBI has been asked to investigate it.

On the issue of demand for a Union Territory comprising Tirap and Changlang districts, the minister said that the State Government had nothing to do with the demand.

He said that the territorial integrity of the State would not be compromised at any cost.

He denied the allegation of the BJP national secretary P. B. Acharya that the Congress Government had brought gun and bullet culture in the State and the Congress leaders were allegedly encouraging demand for a separate Union Territory in the State in collusion with the underground elements in the area.

Mr. Sanjay regretted that he could not expect such a statement from a leader like Acharya. He, however, said that the demand for Union Territory by a section of the people was neither anti-
national nor unconstitutional.
     
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