Ramesh Chennithala alleged that allowing a private company to operate the Maniyar hydel project after its 30-year BOOT lease expired is completely illegal.
He stated that ownership of the project should have automatically transferred to the Kerala State Electricity Board (KSEB) upon contract expiry.
He claimed the delay in taking over the plant caused a loss of ₹56 crore to KSEB while illegally benefiting the private firm.
Operating Of Maniyar Power Project By Pvt Company After Lease Expiry Illegal: Chennithala
Kerala Congress leader Ramesh Chennithala alleges that the private company's continued operation of the Maniyar Power Project following its lease expiration violates law and demands government takeover
Summary
Kerala Home Minister Ramesh Chennithala on Tuesday said that the 12 megawatt Maniyar hydroelectric project should be taken over by the government as the agreement leasing it to a private company expired two years ago.
Chennithala, speaking to reporters here, said that allowing the project to be operated by the private company after expiry of the lease period was "illegal".
"The lease was for 30 years. It is over. So, how can they (company) continue to use the power? The government should take it over. That was my stand earlier and even now," the minister said.
He said that the Kerala State Electricity Board (KSEB) had informed the company several times to relinquish control over the project, but that has not been done.
The Maniyar hydroelectric project was constructed and operated by Carborundum Universal Ltd (CUMI) under a Build-Own-Operate-Transfer (BOOT) arrangement which reportedly ended in December 2024.
Its take over by the government is currently on hold as a panel is reportedly examining the company's application to extend the lease period.
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