From Our Correspondent
Claims massive tender manipulation to benefit a single private company; seeks forensic audit and criminal probe
Tirupati: The Centre for Liberty, a public policy and governance watchdog, has filed a detailed petition with the Andhra Pradesh Southern Power Distribution Company Ltd (APSPDCL), alleging large-scale corruption and financial irregularities in the procurement of power transformers worth nearly ₹40,000 crore.
In a complaint addressed to the APSPDCL Chairman, the organisation claimed that tender rules were manipulated, prices inflated, and technical standards violated to favour Shirdi Sai Electricals Pvt. Ltd. (SSE) — a private company that allegedly cornered almost 90% of all transformer contracts issued by state DISCOMs in recent years.
According to the petition, the allegations are backed by RTI records, purchase orders, and inspection reports, which together point to “a pattern of collusion and misuse of public funds.” The petition was submitted by A.B. Venkateswara Rao (IPS Rtd) and Nalamothu Chakravarthy of the Centre for Liberty (CFL).
Overpricing and tender manipulation
The Centre for Liberty alleged that Andhra Pradesh paid substantially higher prices for transformers compared to other states.
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A 25 kVA 2-Star transformer cost APSPDCL ₹1,19,899, while the same equipment was purchased for ₹87,791 in Telangana, ₹75,496 in Chhattisgarh, and ₹73,101 in Uttar Pradesh.
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Similarly, 5-Star models were procured for ₹1,36,499 in Andhra Pradesh, far above the national average.
The complaint further claimed that while earlier tenders (2017–18) had seven qualified bidders, recent procurement rounds were restricted to just two — SSE and Toshiba. SSE, it said, bagged nearly 90% of the total orders, including ₹505 crore worth of contracts in one DISCOM alone.
Technical violations and financial irregularities
Inspection reports cited in the complaint allege that transformers supplied by SSE did not meet the technical standards set out in the tenders. For instance, tender SPMPT-94/2024-25 required EEL-V grade transformers, but the company allegedly delivered EEL-III models — a lower grade — in “clear breach of contract and technical specifications.”
The watchdog also flagged a ₹20 crore permanent performance bank guarantee clause, which it said gave the supplier “undue financial advantage without matching obligations.”
Conflict of interest and political links
The petition further drew attention to SSE’s alleged ₹40 crore contribution in electoral bonds before the last general election, suggesting the possibility of quid-pro-quo influence on procurement decisions.
“This pattern of tender exclusion, inflated pricing, and policy manipulation cannot occur without high-level collusion,” said A.B. Venkateswara Rao, who signed the petition on behalf of the Centre for Liberty.
Demands for immediate action
The Centre for Liberty has called for:
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A forensic audit of all transformer procurements since 2019, including tenders SPMPT-34/2023-24 and SPMPT-94/2024-25.
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Public disclosure of tender documents, purchase orders, and APERC approvals on the APSPDCL website.
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Suspension and blacklisting of suppliers found violating tender conditions.
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Independent re-testing of transformers by national laboratories such as CPRI or ERDA.
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A criminal investigation under the Prevention of Corruption Act into officials and private entities involved.
Call for transparency
The CFL urged APSPDCL to act decisively “in protecting the integrity of Andhra Pradesh’s power sector and safeguarding public funds.” It also attached a press note dated September 26, 2025, and a presentation containing inspection reports and comparative pricing data as supporting evidence.
There was no immediate response from APSPDCL or Shirdi Sai Electricals Pvt. Ltd. at the time of filing this report.
If proven, the allegations could represent one of the largest procurement-related scandals in Andhra Pradesh’s power sector in recent years.