Thiruvananthapuram: The Kerala State Electricity Board (KSEB) has reported multiple contract violations by Carborundum Universal Ltd, the operator of the Maniyar small hydroelectric project. Despite these findings, the Kerala government recently extended the project’s contract for another 25 years, raising concerns over unaddressed breaches.
The original contract, signed in 1991, and a supplementary agreement in 1995, required the company to sell electricity to KSEB at rates charged to Extra High Tension (EHT) consumers. However, since the introduction of the Open Access system in 2003—which allows consumers to buy electricity directly from producers—the company allegedly violated the agreement by engaging in unauthorized practices.
According to KSEB, the company was permitted to operate the Maniyar project as a captive power plant, with electricity intended primarily for its industrial use and surplus energy supplied to KSEB’s grid. Instead, Carborundum Universal Ltd began purchasing cheaper electricity from external sources while reducing or halting the operation of the Maniyar project.
The issue was brought to light in December 2022, when then-KSEB chairman Dr. Rajan Khobragade alerted the government to the violations. Despite these concerns, the government proceeded to renew the agreement without addressing the alleged misuse of the project for the company’s financial gain.
This decision has sparked criticism, highlighting the need for stricter enforcement of contractual obligations to protect public resources and ensure accountability in public-private partnerships.
