The Kerala State Electricity Board (KSEB) lost ₹56 crore on account of the 14-month delay in taking over the Maniyar small hydroelectric project (SHEP) from Carborundum Universal Ltd., senior Congress leader Ramesh Chennithala alleged on Thursday. He demanded a high-level probe into the reasons for the delay in taking over the 12 MW unit.
The 30-year Build, Own, Operate, Transfer (BOOT) contract with Carborundum had expired in December 2024. Instead of allowing the KSEB to assume control of the 12 MW unit then and there, the government had permitted the private company to continue generating power and selling it.
‘Profit of crores’
The LDF government and the KSEB had helped Carborundum make a profit of “crores” by allowing it to retain possession of the unit and generate power even after the contract period had ended, he alleged. With the contract with the KSEB ending in 2024, the company practically gained the freedom to sell the generated electricity to any buyer, he said.
According to Mr. Chennithala, the per-unit power generation cost at Maniyar is below 40 paise. Despite this being the case, the KSEB was purchasing high-priced electricity from elsewhere to meet the summer demand. Mr. Chennithala alleged that although the State government has issued orders for the takeover, the KSEB is yet to do so.
