Rs 100 crore SCADA tender scam exposed

Accusations Aplenty

1. NPDCL accused of awarding SCADA tenders worth Rs 100 crore to an inexperienced firm.
2. ABB, Siemens, and other MNCs allegedly sidelined through tender manipulation.
3. Outdated IEC-104 protocol chosen over modern 61850 standard.
4. Panels overpriced up to Rs 1.74 lakh against market value below Rs 1 lakh.

Numbers Speak

Project Scope: 1,700 substations under NPDCL

Estimated Irregularities: Rs 100 crore+

Panel Market Price: Rs 1 lakh vs Tender Price Rs 1.74 lakh

First Phase Cost: Rs 23.27 crore for 100 substations

Technology Used: IEC 104 (outdated) vs IEC 61850 (international standard)

Former MLA demands CID/Vigilance probe into the alleged scam.

Rules ignored, funds diverted, and technology bypassed — that’s how experts are describing the alleged Rs 100 crore irregularities in the installation of the SCADA (Supervisory Control and Data Acquisition) system under the Northern Power Distribution Company (NPDCL). What was meant to modernize power monitoring and ensure faster restoration has instead turned into what insiders call a “well-planned loot” of public money.

According to senior engineers and industry experts, tenders were manipulated to favour a small private firm, “Vital,” while sidelining reputed multinational companies such as ABB and Siemens. The scandal, they claim, began when NPDCL decided to introduce SCADA systems across around 1,700 substations in rural Telangana — without conducting any technical or feasibility study.

Tender rules bypassed for small firm

Despite having no manufacturing capacity, experience, or proprietary technology, Vital — a two-year-old company — was awarded the multimillion-rupee contract. Instead of directly procuring from certified manufacturers, officials allegedly altered tender conditions to exclude top global players. The move ensured that the small firm bagged the entire project, raising serious doubts about the transparency of the process.

The project was originally meant to improve efficiency and ensure automatic fault detection and quick power restoration — similar to the system used in Hyderabad since 1999, where power is restored within seconds due to a ring system network. However, experts note that no such infrastructure exists in rural areas, making SCADA deployment technically impractical there.

Outdated technology, overpriced equipment

Adding to the controversy, NPDCL’s tender specifications chose the old IEC-104 protocol instead of the modern 61850 international protocol now used globally. Experts call this a deliberate move to restrict participation of advanced manufacturers like ABB and Siemens and to benefit firms linked to Schneider — whose former employee reportedly joined Vital after the tender process.

The selected devices reportedly lack crucial safety certifications and display features necessary for field diagnostics. Even the relay systems were not integrated with Remote Terminal Units (RTUs), violating essential technical norms.

In terms of pricing, too, officials allegedly inflated costs. Panels that typically cost under Rs 1 lakh in open market were quoted at Rs 1.74 lakh each. Relays worth Rs 30,000 were shown at much higher prices. Across 1,700 substations, these inflated costs alone are estimated to have caused losses of nearly Rs 80 crore — and total irregularities could exceed Rs 100 crore.

Work done partly, payments fully released

As per reports, NPDCL awarded initial work for 100 substations worth Rs 23.27 crore (including GST and labour) in January 2025. Later, the scope expanded to over 700 substations. Vital completed work in about 100 substations but reportedly dumped materials for another 500–600 substations in NPDCL’s storage facilities — and still managed to claim nearly 70% of the contract funds.

Insiders allege that the company is now preparing to bag contracts for another 1,000 substations. Moreover, since all installed systems and components are proprietary, NPDCL may now remain dependent on the same company for all future replacements, maintenance, and upgrades — locking the department into a long-term financial burden.

Alleged favors and foreign trips

NPDCL insiders allege that certain officials received “benefits” from the contractor, including luxury gifts and foreign trips. Some officers were even reportedly rewarded with gold, according to staff discussions. These revelations have caused unease among employees, who question how such foreign trips were approved by top management.

Complaint to Principal Secretary

Former MLA Yendala Laxminarayana has lodged a formal complaint with the State Energy Department’s Principal Secretary, demanding a detailed probe into the alleged Rs 100 crore SCADA scam. He urged the government to initiate investigations through the CID or Vigilance Department to uncover the officials and private players involved.

Experts and engineers within NPDCL also believe only an independent inquiry can expose the scale and the key beneficiaries of this massive irregularity.

NPDCL denies allegations

When contacted, NPDCL CMD Varun Reddy refuted all allegations. Speaking to Metro India, he said, “There are no irregularities. The first tender was cancelled and reissued to ensure fairness. Three companies participated, and two pre-bid meetings were held before finalization. The technology was approved by a Technical Committee after studying systems across six states. For rural areas, this was considered the best technology. Even Tata Power is using the same system in Odisha. The price difference claims are incorrect.”