Thiruvananthapuram: In a significant development, the power department has finally granted clearance to the Kerala State Electricity Board (KSEB) to take over the Maniyar hydroelectric power project, overriding objections from the industries department. This decision ends a prolonged dispute between the two departments.
Background of the Project
The 12MW small hydel project was established by Carborundum Universal on a build-own-operate-transfer (BOOT) basis in the early 1990s. The original agreement had a validity of 30 years, which was extended once due to the floods in 2018. The extended validity expired in 2024, and the company was required to transfer the utility to KSEB by December 2024.
Inter-Departmental Conflict
The industries department raised objections against KSEB taking over the project, leading to a difference of opinion between Industries Minister P Rajeeve and Power Minister K Krishnankutty. Senior Congress functionary Ramesh Chennithala also leveled corruption allegations against the industries department's move to grant further extensions to the private firm.
The government order, undersigned by Additional Chief Secretary (Power) K Manoj Kumar, directed KSEB to take urgent steps to assume control of the project. The order stated, "I am directed to invite your attention to the reference cited and to request that urgent necessary steps be taken to assume control of the Maniyar Small Hydroelectric Power Project (12MW) from Carborundum Universal under intimation to the government."
Conflicting Views
The industries department supported the private firm's demand for an extension, arguing that denial would adversely affect the industrial environment in Kerala. However, KSEB maintained that extending the BOOT agreement would set a precedent, triggering similar requests and derailing the objective of the BOOT model, besides inviting legal complications.
With the power department's clearance, KSEB is now expected to take over the project, ending the uncertainty over its control. The move is seen as a victory for the power department and a setback for the industries department's stance.
