Electricity, Industries ministers clash; cabinet halts Maniyar hydel project takeover

THIRUVANANTHAPURAM: At a time when the state is facing a severe power shortage, the Kerala cabinet has put on hold the KSEB order to take over the Maniyar hydel project, which produces 12 MW of electricity. The project is currently held by Carborundum Limited even after the expiry of the contract period.

The decision came after a sharp disagreement in the cabinet meeting. The Electricity Minister supported the takeover, while the Industries Minister opposed it. The Industries Minister argued that the move would go against the state’s industry-friendly environment. Finally, the cabinet decided in favour of the private company and deferred the takeover.

The cabinet has directed a committee led by the Chief Secretary, along with secretaries from the Law, Industries, and Power departments, to study the issue and make a decision. Following this, the Chief Secretary instructed KSEB and the Pathanamthitta District Collector to halt the takeover process.

The Power Department had issued an order last week to take over the Maniyar project. It is reported that Electricity Minister K Krishnankutty is unhappy with the cabinet’s decision.

Takeover blocked, tension at site
When KSEB officials reached the site to take over the project as per the order, officials of Carborundum Limited stopped them. A board installed by KSEB was also destroyed. KSEB later filed a complaint with the Pathanamthitta SP seeking police protection and also sought help from the District Collector. The Cabinet decision came just before the Collector was scheduled to visit the site.

Contract expired in 2024; company seeks extension

1. A 30-year BOT agreement between Carborundum and KSEB was signed in 1991. The contract expired in December 2024, but the company has not handed over the project.
2. The company claims it spent heavily to repair damages caused by the 2018 and 2019 floods and has demanded a 25-year extension.
3. The project uses water released from the Sabarigiri project, allowing stable power generation even during summer.
4. The company earns around Rs 18 crore annually from the project and has made over Rs 300 crore profit in the past 30 years, mostly by selling the power generated.