Thiruvananthapuram: The Kerala government has decided to extend the contract of the Maniyar small hydroelectric project in Pathanamthitta district to a private company for an additional 25 years, bypassing objections from the Kerala State Electricity Board (KSEB).

The decision was made at a cabinet sub-committee meeting chaired by Chief Minister Pinarayi Vijayan. Reports suggest that the decision was influenced by pressure from the Chief Minister and the Industries Minister P Rajeeve, despite strong opposition from the Power Department Secretary and the Chairman of the Electricity Board, who recommended the project be taken over by the board as it was deemed profitable.

The government has approved extending the BOT (Build, Operate and Transfer) contract issued to Carborundum Universal Limited, part of the Murugappa Group, for the 12 MW project.

In 1990, the Left government opened up the power sector to private companies through its power policy. The agreement at that time specified that the electricity generated by the project would be used by the company for its industrial needs, with the surplus being supplied to KSEB.

Under an agreement between KSEB and the company, the project began operations in December 1994 and was to be fully transferred to the board after 30 years, by December 2024. However, the cabinet’s decision has postponed this transfer.

Chief Minister Vijayan reportedly justified the decision to extend the contract, citing the need for such concessions to attract industrial investments.

Congress leader Ramesh Chennithala has accused corruption behind the decision to extend the contract. He alleged that the extension was granted after accepting a bribe worth crores of rupees, bypassing the objections raised by KSEB.