Seethathode: Despite the Build Own Operate Transfer (BOOT) contract between period of the private company having expired, the government is yet to make a decision regarding the operation of the Maniyar Hydroelectric Project. While discussions are ongoing, the private company, Carborundum Universal Limited, continues to generate electricity from the project. This has raised questions regarding the pricing of electricity produced after the contract period, as well as issues related to the project transfer.

The files concerning the final decision on the Maniyar Hydroelectric Project, including the Maniyar Dam, are currently before the Chief Minister. Electricity production at the Maniyar facility began in 1994. With a generation capacity of 12 MW, the project is now at the centre of a dispute over the continuation of operations by the company post-contract expiry.

As of December 31, 2024, the state government's 30-year BOOT contract with the Carborundum Universal Limited has ended. However, the state government has yet to decide whether to extend the contract or give the project to the Kerala State Electricity Board (KSEB). The delay has resulted in accusations of mismanagement and corruption from the Opposition.

Currently, the electricity generated at Maniyar, estimated at 3.6 crore units annually, is sold to KSEB at a rate of ₹5 per unit, even though the production cost is only ₹0.50 per unit. This has been a point of contention. The annual revenue from electricity generation at Maniyar exceeds ₹18 crore.

It may be noted that the water and reservoir used for electricity generation at Maniyar belong to state government departments. According to a section of senior officials at KSEB, the Carborundum company has been reaping profits by utilising these resources. 

As per the contract, the electricity generated at Maniyar is supposed to be handed over to KSEB in Pathanamthitta district. And the KSEB, in return, will supply electricity to the Carborundum company’s industrial units in Ernakulam and Thrissur districts.
However, flouting the contract, the Carborundum company is extracting the price of electricity generated at Maniyar from the board, as per the sources.

The controversy surrounding the project’s transfer has also revealed that KSEB has been purchasing electricity from Maniyar at a high cost for years.