Govt pays GMR's 'due' in Chhattisgarh

The company was supposed to deposit Rs 30 crore with the Mahasamund district administration for paying compensation

Chhattisgarh government had deposited money that factually GMR Group was supposed to pay for disbursing compensation to project affected farmers.

The GMR Chhattisgarh Energy Limited, a subsidiary of GMR Group, is setting up 1370 Mw (2x685 Mw) super critical coal based power plant located in Raikheda of Raipur district. The plant would require 40.3 cusec water and the supply would be met from the Samoda barrage on Mahanadi.The state government had acquired land in four villages straddling between Raipur and Mahasamund districts that were coming under submergence area.

The company was supposed to deposit Rs 30 crore with the Mahasamund district administration (the details of Raipur district could not be known) for paying compensation to the farmers who gave away their land for the construction of barrage. It however, deposited only Rs 3 crore while failed to respond for the remaining amount even after series of reminders sent by the water resources department. Interestingly, the department deposited Rs 27 crore with the Mahasamund district authorities.

“It was a clear case of favouring a corporate house as there was no clause that ensured department paying company’s dues,” ruling BJP legislator Devji Patel told Business Standard. He raised the issue in the Chhattisgarh Legislative Assembly and put his own party-run government in the dock over the issue. It was an exception case that the government was paying due on behalf of a corporate, Patel added.

Chhattisgarh’s water resources minister Brijmohan Agrawal admitted that the department had deposited the required money with the authorities that GMR was supposed to pay. “The decision was taken in the interest of farmers as they were waiting for the compensation,” the minister said, adding that the department would recover the entire amount from the GMR with interest. The process had been initiated, he said.

While responding to an email query sent by Business Standard, the company said: Assembly proceedings are not commented by GMR”.