Chennithala alleges Rs 56 cr loss to KSEB over delay in takeover of Maniyar hydel project

Senior Congress leader Ramesh Chennithala on Thursday alleged that the Kerala government and the KSEB colluded to allow a private firm to make huge profits by retaining control of the Maniyar hydroelectric project for 14 months after expiry of its contract, causing a loss of Rs 56 crore to the power utility.

Senior Congress leader Ramesh Chennithala on Thursday alleged that the Kerala government and the KSEB colluded to allow a private firm to make huge profits by retaining control of the Maniyar hydroelectric project for 14 months after expiry of its contract, causing a loss of Rs 56 crore to the power utility. In a statement, Chennithala said the project agreement ended on December 31, 2024, and that ownership of the hydroelectric station should have been transferred to the Kerala State Electricity Board (KSEB) thereafter. Instead, the government allegedly permitted Carborundum Universal to continue power generation and sale from the project for 14 more months, he claimed. According to Chennithala, the company has been illegally retaining control of the Maniyar hydroelectric project and selling the electricity generated there to private buyers at higher rates. The Congress leader claimed the production cost per unit at the station is below 40 paise, while the company sold electricity at rates of Rs 10 to Rs 14 per unit during peak hours, earning excessive profits. At the same time, KSEB had to procure electricity from outside the state at high rates despite facing a power shortage, he alleged. Chennithala said the project has an installed capacity of 12 MW and could generate around 12,000 units of electricity per hour. He further alleged that the government had ordered the takeover of the project due to the state's difficult power situation, but the KSEB had yet to assume control. Demanding a high-level probe into the delay in taking over the project, Chennithala sought strong action against those responsible. KSEB and the state government are yet to respond to the allegations of Chennithala. Carborundum Universal set up a 12 MW small hydel project in Pathanamthitta on a build-own-operate-transfer (BOOT) basis, signing a 30-year agreement with KSEB, and it became operational in 1994. Recently, the state government ordered the project's takeover due to the agreement's expiry.