Scam Exceeding Rs 400 crore in Sikkim Power Dept, CAP to File Case

Rai stated that his party will file a case and submit a memorandum to the Governor, demanding an inquiry into the matter.

A scam exceeding Rs 400 crore has been reported in the Sikkim Power Department between 2018 and 2022, as per a CAG report.

Citizen Action Party-Sikkim President Ganesh Rai speaking to Northeast Live alleged that despite Sikkim being a power-surplus state, the government purchased electricity at a high price and sold it at a lower rate, leading to a massive revenue loss for the state.

He further claimed that there could be collusion behind this financial mismanagement, which has resulted in a loss of over Rs 400 crore for Sikkim, as per the CAG report.
Rai stated that his party will file a case and submit a memorandum to the Governor, demanding an inquiry into the matter.

Sikkim has agreements with eight Independent Power Producers (IPPs), which mandate that 12% of the total power produced must be provided to the state for free, said Rai, citing the CAG report. However, the government has been taking power from five IPPs while taking cash payments from three others, he added.

Ganesh Rai has demanded a detailed inquiry into the Power Department’s financial mismanagement, emphasizing that Sikkim’s people have suffered huge losses due to these irregularities, as revealed by the CAG report.

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