Kochi, Saturday, 17 April 2010: CBI informed the Special Court here that there has been no evidence obtained against CPM State Secretary Pinarayi Vijayan’s involvement in connection with his financial transaction with mediators, company in the SNC Lavlin case. The CBI sources made this statement in the affidavit submitted in the court. The Court was considering the case registered by T.P Nandakumar, requesting to reveal the present situation in the 300 billion crores SNC Lavalin scam case.

As there exists a petition filed by Pinarayi Vijayan challenging the Kerala Governor RS Gavai’s decision to prosecute him in the Supreme Court, CBI is on the stand that there is no relevance in further probe into the case. Also they made it clear that the people who acted as middlemen between the company and Vijayan , Nazar has already been questioned but no evidence against the former Minsiter could be obtained .And attempts still continue to question Dileep who is abroad. Also they informed the Court that probe against former Minister G. Karthikeyan is in its final stage.

Earlier report

SNC Lavlin Case : The Kerala government had ordered the renovation and augmentation programme at Pallivasa, Sengulam and Panniar hydel power stations (aggregate capacity 115 MW) in 1996. Pinarayi Vijayan of CPM was the Power Minister of Kerala then. The awarding of the project has run into controversy because the CAG’s performance audit of the program found fault with it. Neither the renovated power stations were generating power at least to the same level as that of pre-renovation, nor did the promised aid to the MCC (Malabar Cancer Centre) materialize.

The three powers stations in the Periyar river basin with a total of 12 generating machines in the capacity range of 5 to 15 MW and installed during 1940 to 1964, were generating much below the design capacities for a variety of reasons. Therefore, an agreement was signed by the KSEB (Kerala State Electricity Board) with the Canadian project consulting company, SNC Lavalin in February 1996 for the supply of project equipment and related services under Canadian credit. Within a few months, the LDF came to power and the new Power Minister took the initiative in re-negotiating the price and other terms and conditions of the contract and also visited Canada for discussions in this regard before finally awarding the contract. Experts argue that the renovation and augmentation could have been done by local engineers of KSEB, leave alone national and international level players. When the project was finally executed in 2001, generation of power did not reach even the pre-renovation levels. Experts argue that it was a clear case of political corruption. SNC Lavalin had promised to pay Rs. 98.3 crores to the Malabar Cancer Centre (MCC) as a reward for award of the contract to them at an estimated cost of Rs. 283 crores.