Row over power project in MP

A controversy is likely to erupt over the 1,000 Mw Indira Sagar hydel power project in the Khandwa district of Madhya Pradesh with the onset of the monsoons. The fear of flash floods looms over Harsud town, which is in submergence area of the project, as the dam has reached a height of 245 metres.

Constructed by the Narmada Hydroelectric Development Corporation (NHDC), a joint venture of the MP government and the National Hydroelectric Power Corporation (NHPC), the Indira Sagar project started producing power from its first unit on January 14.

Now four units of the project are operational and are generating 305 Mw (peak) power. It has earned a net profit of Rs 12.37 crore during the first three months of commercial power generation.

Under the resettlement and rehabilitation plan of the NHDC, 249 villages, including the 700-year old Harsud town, which is home to about 20,000 people, were to be resettled. It was estimated to cost Rs 1,300 crore.

According to NHDC officials, the company has paid Rs 900 crore to the MP government to resettle 138 villages before June 15, but the state government has resettled only 95 villages so far.

To prevent the submergence of the old town, the NHDC had planned to construct a guide bond (temporary and later a permanent concrete wall) across the town.

The company roped in the sociology department of Barkatullah University (formerly Bhopal University) to conduct a survey so that a guide bond of an average height of 4-5 metres could be constructed before the dam height could reach 245 meters.

But, this plan sparked protests in the town in February 2003, resulting in the death of a protester. Subsequently, the survey was put on hold.

Madhya Pradesh Chief Minister Uma Bharti had, before coming to power, supported the demand of the town's local populace to boycott the survey and guide bond scheme and demanded that Harsud be rehabilitated.

"Harsud was probably the first town in the world that demanded its submergence under a hydel power project as the locals were misled by political leaders into believing that the rehabilitation package would be attractive," said a government source.

According to NHDC's R&R plan, an amount of Rs 20,000 (or a plot area) and a rehabilitation grant of Rs 18,700 (minimum of Rs 9,350) has to be provided to the families of Harsud.

Besides, they are eligible for a transportation cost of Rs 5,000 per family to be shifted to Chhanera (new Harsud). But most of Harsud's inhabitants are yet to receive the promised compensation.

Moreover, local media reports talk about irregularities in the rehabilitation programme.

The state government recently issued a statement that said: "Families who had 540-1,000 square feet residential plots would be provided 1,500 square feet plots at the new site. Those that who had over 1,000 square feet plots would be given 2,400 square feet plots free. Also, families that displaced prior to June 30 would be paid 10 per cent of the award amount, which would be a minimum Rs 25,000 and a maximum of Rs 5 lakh, as special city compensation allowance. Families that opt against a plot at the rehabilitation site would be entitled to receive Rs 20,000 cash."

Meanwhile, the NHDC has also declared a dividend of Rs 2.40 crore.

"During the last three months we have sold power worth Rs 27.34 crore We have earned a net profit of Rs 12.27 crore during the said period," said a NHDC spokesperson. The company sold 192.97 million units during the same period.

The second unit of the project started only four days after the commissioning and operation of the first one. The third and fourth units were installed on March 6 and March 29, respectively.

"The fifth unit will be installed by June end," said the spokesperson.

The project cost is approximately Rs 4,000 crore and it is to be completed by December 2004 ahead of schedule.