Kochi: In a startling finding, Carborundum Universal Limited, which is seeking to extend its lease on the Maniyar Hydroelectric Project, has not utilised a single unit of electricity from the project in the past three years. Instead, the company sold all the electricity produced to the Kerala State Electricity Board (KSEB). This fact is hidden in the 10-year records of the Maniyar Project maintained by the KSEB.

The Maniyar project, located in Pathanamthitta, was the first private captive power project approved in Kerala. Of the three generators, each with a capacity of 4 MW, electricity generation began from the first generator on March 31, 1994, with the other two starting operations by the end of December that year. The project has an average annual production capacity of 36 million units.

As per the contract, after meeting its requirements, Carborundum Universal Limited is permitted to sell surplus electricity to KSEB. The company produces electricity at 50 paise per unit and sells it to KSEB for ₹5 per unit. Interestingly, the company purchases its own electricity requirements at lower rates from external sources, instead of using the power generated at Maniyar. This arrangement allows the company to profit substantially by selling its generated electricity to KSEB.

In the financial years 2021–22, 2022–23 and 2023–24, the company provided 48.5 million units, 88.5 million units and 29.8 million units of electricity respectively to the KSEB grid. Meanwhile, the company’s facilities in Ernakulam and Thrissur districts used electricity purchased at lower rates from outside suppliers through "open access”, which allows industrial establishments to buy electricity externally with KSEB's no-objection certificate. Daytime rates from external suppliers are as low as ₹1 per unit.

In 2022, KSEB issued a notice to Carborundum Universal, pointing out that the company was not using electricity generated at Maniyar. KSEB’s stance is that companies failing to use electricity from their captive power plants should not be granted contract extensions.

Currently, the Industries Department supports extending the contract with the company, while the Electricity Department opposes it. The Chief Minister has been tasked with deciding whether to extend the agreement, which expired on Monday.

Meanwhile, senior Congress leader Ramesh Chennithala has demanded that the government take over the Maniyar Project and hand it over to KSEB. He alleged massive corruption behind the proposal to extend the contract with the Carborundum Universal Limited.