Maniyar power project controversy: Electricity generated without contract sparks debate

Kochi:  Amid controversies surrounding Maniyar, Carborundum Company has generated 4.43 lakh units of electricity without a valid contract. The contract for the project expired on December 31, 2024. However, as per records from the Kerala State Electricity Board (KSEB), 4,43,100 units of electricity were produced at Maniyar until January 20, 2025. This electricity was supplied to the Board's grid by the company.

In the absence of a decision by the Board to extend the contract, this act is being considered illegal. The company had already been served a notice by the Electricity Board for breaching the contract. Now, the company is producing electricity without a valid agreement.

The Maniyar Hydroelectric Project in Pathanamthitta is the first captive power project in the state approved for a private company. The production had been ongoing since 1994.

Electricity Minister opposes contract extension, CM favourable

Electricity Minister K Krishnankutty had announced in the Legislative Assembly that he opposed extending the contract. However, Chief Minister Pinarayi Vijayan had taken a stance in favour of the company. As a result, the Electricity Board and the Energy Department demanded the project's renewal. The controversy arose when the Industries Department insisted on extending the contract for another 25 years to Carborundum.

Carborundum in no need of electricity 

For the past three years, not even a single unit of electricity from the project has been used by Carborundum. The Electricity Board holds the position that the contract does not need to be extended as the company no longer requires electricity from the captive project.

The Board had issued a notice to Carborundum pointing out that not even a single unit of electricity had been utilised by the company since 2022. The CAG audit two years ago also had flagged the matter, leading to the decision to withhold payment for the electricity to Carborundum.