Thiruvananthapuram, July 8: The state government has cancelled the approval given to 14 of the 25 new small hydro electric projects proposed to be developed by the private sector as the promoters concerned "failed to sign the preliminary agreement within the stipulated timeframe". The decision is likely to be controversial as the aggrieved promoters told The Financial Express that they were backing out on their own as the Build Operate Transfer agreement in regard to the hydel projects were in violation of the guidelines of the Central Electricity Authority. The State Power Minister Pinarayi Vijayan said here on Wednesday that the projects would now be allotted to eligible new promoters and steps would be taken to execute the projects at the earliest. The cancelled projects were included in the newly identified projects, the Minister added.The Kerala State Electricity Board has been directed to issue advertisement seeking new promoters and calling fresh applications for fresh approval of theprojects, Vijayan said. The 25 small and mini hydel projects were to be promoted as captive power projects in the private sector. Of these, the 3 MW Attapadi project has been omitted from the list as it requires the approval of Central Water Commission. Anakampoyil and Pathamkayam projects would be executed with Chinese assistance. For eight of these projects, the promoters have already signed the preliminary agreement with the State Government.
The 14 projects whose approval has been cancelled include Vilangod (7 MW), promoted by Binani Zinc Ltd ; Chattarurukottu II Phase (7MW) promoted by Carborundum Universal Ltd; Poozhithodu (3.5 MW) by GTN Textiles; Urumi I Phase (2 MW) by Synthite Industrial Chemicals Ltd; Barapol (9 MW) by Binani Zinc Ltd; Karimpuzha (0.9MW) by Phosphates and Chemicals Travancore Ltd; Chittur (6MW) by Bhuvan Steel Industries; Urumpini (3.5 MW) by GTN Textiles; Meenmutti Parathode (0.33 MW) by Pamba Rubbers; Alakode (2.5 MW) by Travancore Cements Ltd; Palchuram (3.5 MW) by ShaktiFinance; Palakuzhi (1 MW) by Kerala Solvent Industries and Onipuzha (1.5 MW) by Industrial Chemicals and Monomers Ltd. The notification regarding cancellation of approval would be sent soon directly to the promoters concerned, the Vijayan said.
Meanwhile, one of the promoters whose project approval was cancelled, Carborundum Universal Ltd, said they had backed out because the State Government and the KSEB were unwilling to raise the lease period of the BOT agreement to 30 years as stipulated by the CEA. KSEB had stipulated a lease period of 11-12 years for the new projects and could turn out to be unviable.
Incidentally, Carborundum's Maniyar captive hydel project which has become operational is leased for 30 years to the promoter. With the government unwilling to raise the lease period, the promoters had no option but to back out of the project, it was argued. The CEA guidelines stipulate that all BOT projects should ideally be on lease for 30 years which could be extendable by another 20 years if thegovernment desires. The promoters could not adhere to the timeframe set by the government to sign the provisional agreement, because the major period was not sorted out,the promoters said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
