I doubt that I was wrong about fuel leakage from Chappu. Actually I sprayed carb cleaner from that red circled path and it came out from Chappu. It must be for air to be sucked for mixture. Correct me if I am wrong.
It seems to me that problem is with power valve. Without power piston carb works great. No soot on spark plugs and silencer. Fuel economy is also good. But without power piston car jerks on acceleration and loss of power when climbing.
Another thing is that according sf310 the power piston should press the power valve when vacuum in the intake manifold falls. It seems that during normal running of engine the power piston stays pulled up by vacuum pressure. when vacuum falls due to load the spring in the power piston presses down the power valve to make the mixture richer. may be my spring is tight enough which keeps on pressing the power valve even in normal operation.