Electricity Department is against extending Maniyar Project contract: Minister Krishnankutty

Thiruvananthapuram, Dec 16 (PTI) Kerala Electricity Minister K Krishnankutty on Monday stated that his department is against the extension of the contract with Carborundum Universal Limited for the Maniyar mini hydel project.

Speaking to reporters, he said the matter is before the chief minister, and he will take the final decision in this regard.

The electricity minister's statement came reportedly after the industries department took a stance to extend the contract with Carborundum Universal Limited for another 25 years, as part of its policy to promote more such industries in the state.

Minister Krishnankutty clarified that the industries department's proposal to extend the BOT (Build, Operate, and Transfer) contract with Carborundum Universal Limited for the Maniyar mini hydel project by another 25 years is not a final decision.

"The industries department has extended necessary support to an industrialist and is assessing whether discontinuing the contract would adversely affect the industrial sector," he said, adding that both the stances of the industries and the electricity departments are before the CM.

Responding to the corruption allegations raised by the Congress-led UDF, the minister stated that the Kerala State Electricity Board (KSEB) had presented its stance to the chief minister.

"Our position is that the project should be taken back by KSEB when the contract concludes," he stated.

The contract will end on December 30, 2024.

Meanwhile, Congress leader Ramesh Chennithala on Monday claimed that the contract extension's corruption charges became evident after the electricity minister clarified his position.

Chennithala had alleged that extending the contract for another 25 years was allegedly smacked of corruption.

He claimed that extending the contract to the company amounted to corruption, pointing out that the memorandum of understanding had not been adhered to.

Chennithala further accused the industries minister of colluding to secure profits for a private company, resulting in corruption worth crores.

He noted that the 1991 contract with the company did not include provisions for renewal.

"The said contract should have ended on December 30, 2024, and a notice should be given to the Carborundum company 21 days before this, and the government has not given that notice," he said.

It was in 1990 that the Left government allowed the entry of private companies into the power sector as per its power policy.

Accordingly, Carborundum Universal was given approval to implement the Maniyar hydroelectric project, with a production capacity of 12 MW.

The agreement was that the power generated through the project would be allowed to be used by the company for its industrial requirements and that the rest would be given to KSEB. PTI ARM ARM KH