Maniyar hydropower project, dispute not resolved: CM seeks report

Kerala: KSEB says it will take back the Maniyar small hydropower project as per the agreement. The Industries Department wants the project to remain in the hands of a private company so that the industry can continue to exist. The dispute between the departments could not be resolved even in the discussion held in the presence of the Chief Minister. Finally, the Chief Minister directed to study the legal aspects of the agreement and submit a report. On November 12, KSEB wrote a letter to Carborundum Universal Company requesting it to transfer the entire Maniyar project to KSEB on the basis of the agreement dated May 18, 1991, which had a condition to construct, own, operate and transfer the hydropower project at its own expense (BOOT).

The condition is that the transfer should be completed before January 1, 2025. It has been stipulated in the agreement that if this condition is violated for any reason, KSEB will have the right to seize the Maniyar project including all the structures. In the presence of this condition, the government cannot enter into any new agreement for the Maniyar project without the consent of the KSEB. The government has been informed that it cannot abandon the project, which provides power worth crores of rupees annually to the KSEB, at no additional cost.

The board argues that if the conditions are relaxed for one company, then similar relaxations will have to be made in the contracts of 8 other small hydropower projects expiring soon. It has also informed the government that setting such a precedent will put the KSEB, which is already grappling with huge financial liabilities, in trouble.

The Industries Department, however, argues that if any industrial enterprise operating in the state closes its factories due to inability to get profitable power, it will affect the image and industrialists will hesitate to start new ventures in Kerala. A decision in this regard will be taken soon.