Former Congress Leader Condemns Hydro Project Privatization
In a strong critique of the Zoram People's Movement (ZPM) government, former Congress legislator T T Zothansanga has launched a sharp attack against the administration's alleged plan to privatize or outsource eight Small Hydro Electric Projects (SHPs). During a press conference held in Aizawl on Tuesday, Zothansanga described the move as deeply detrimental to Mizoram's interests and equivalent to selling the state's valuable assets.
Questioning the Government's Decision
Zothansanga revealed that the state government made the controversial decision on February 13 to outsource or privatize eight SHPs, a move he considers completely unjustifiable given their proven revenue-generating potential. We are speaking out today because this decision will cost the state heavily, he asserted during the press conference.
The former legislator provided detailed context about Mizoram's power infrastructure, noting that the state currently operates 14 hydroelectric projects with a combined generation capacity of 101.05 MW. He emphasized that nine of these projects were constructed under Congress governments, three under the Mizo National Front (MNF), and two during the People's Conference (PC) regime. These projects were created by previous governments. The present ZPM regime has not added anything in the power sector, he alleged.
Financial Concerns and Suspicious of Favoritism
Zothansanga particularly highlighted the case of the Serlui 'B' SHP, a 12-MW project that has demonstrated impressive financial performance over the past decade. According to his presentation of financial records, the project has earned Rs 129.53 crore, spent Rs 51.39 crore, and generated a profit of Rs 78.14 crore - achieving a remarkable profit margin exceeding 60%.
Despite this strong financial performance, the Serlui 'B' project is among the eight facilities the government plans to hand over to Kundan Green Pvt Ltd for a period of 25 years. Under the proposed arrangement, the state would receive only 32% of the power generated and would need to purchase back the remaining 68% from the private company.
Zothansanga presented detailed calculations showing that based on 2023-24 figures, the project generates approximately Rs 18.05 crore annually. Under the proposed deal, the state would receive only Rs 5.77 crore, while Kundan would earn Rs 12.28 crore each year. Over the 25-year contract period, this would translate to profits exceeding Rs 307 crore for the private company - a substantial loss that Mizoram would effectively bear.
The former Congress leader described the outsourcing plan as perplexing given Serlui B's healthy operational condition and suggested that the move raises suspicions of possible kickbacks.
Complete List of Affected Projects
Zothansanga identified the other hydro projects proposed for outsourcing, which include:
- Maicham Phase-I (2 MW)
- Maicham Phase-II (3 MW)
- Tuipangpui (3 MW)
- Tlawva (5 MW)
- Serlui A (1 MW)
- Tuipui (0.05 MW)
He claimed that all these units are currently generating revenue for the state and questioned why the government was rushing to hand them over to a private firm without proper justification or transparent evaluation processes.
The former legislator also dismissed as incorrect and baseless recent remarks by the state's power minister claiming that Mizoram has generated only 38 MW of power so far, contradicting the official figure of 101.05 MW from existing hydro projects.
