Maniyar project takeover: Ministers clash in Cabinet meeting, CM intervenes; Decision put on hold

Thiruvananthapuram: A dispute broke out between ministers during a Cabinet meeting held just before the government’s term ends. The disagreement was over the government’s move to take over the Maniyar small hydel project from a private company.

Minister P Rajeev argued that the takeover should be put on hold. On the other hand, Minister K Krishnankutty maintained that the Cabinet was merely implementing its earlier decision to take over the project.

Rajeev insisted on examining the company’s request to renew the contract, which Krishnankutty opposed. The argument took place during an online Cabinet meeting, with both ministers firmly sticking to their positions.

Eventually, the Chief Minister intervened. A committee of officials was appointed to examine both the company’s request for contract renewal and the government’s takeover move. The Law Secretary will serve as the convener, with Additional Chief Secretaries from the Industries and Power departments as members. The Cabinet decided to keep the takeover proceedings on hold until the committee submits its report. Following this, the Chief Secretary issued a letter to the Power Department to halt further action.

The 12 MW Maniyar small hydel project is located in Pathanamthitta. As per the agreement, the private operator—Carborundum Universal Limited—was to hand over the project along with all assets to the Electricity Board after 30 years.

The contract expired in December 2024. The company had requested a 25-year extension, but the Electricity Board rejected the plea. The company argued that it had incurred heavy expenses to repair damages caused by the floods of 2018 and 2019, and therefore sought an extension. The Industries Department supported this position. However, since the Kerala State Electricity Board was not willing to renew the contract, the takeover could not proceed earlier.

With the contract having expired, the Cabinet had decided on March 14 to take over the project, and the Power Department Secretary issued orders to implement the decision.

However, the company has not allowed officials to access the project site to complete the takeover process.