Maheshwar hydel power project stalled again

Work on the controversial 400 Mw Shri Maheshwar hydel power project has been suspended again.

Only recently, work had been resumed after five years ,after the MP government had offered a guarantee and counter guarantee to the project.

Chief Minister Shivraj Singh Chauhan, talking to mediapersons, at his official residence, confirmed the report and said he had received an objection to the project from the Union Ministry of Forest and Environment and added that work would be suspended till the completion of legal formalities.

"Directives have been issued in this regard," he said.He refused to answer further questions related to the fate of the project, which is now estimated at Rs 2,254 crore.

The Minister of Environment and Forest in its notice issued to State Government on 9 June (a copy of which is with Business Standard) said, "The central Government in exercise of its powers under section of 5 of environment (Protection) Act, 1986 hereby directs the Government of Madhya Pradesh to get the ongoing work at the Maheshwer Hydroelectric Project site suspend with immediate effect till a comprehensive resettlement and rehabilitation (R&R) plan is submitted by the project authorities..."

The BJP government, soon after taking power from the Digvijay Singh government was upbeat on the completion of the project.

For unknown reasons, the BJP government is reluctant to hand over the project to its own entity Narmada Hydroelectric Development Corporation (NHDC), which the state government formed in association with National Hydroelectric Power Corporation (NHPC).

The NHPC officials, on number of occasions, have said they can complete the project within 30 months. "The power tariff may go as high as Rs 7.50 per unit, even if construction starts right now," a government insider said.

He added "Any further delay on the project will seal its fate since the catchment area of Sardar Sarovar, which is going to be constructed downstream, will submerge the project site. As a result the government will have no option but to abandon the project."

The notice issued to Madhya Pradesh Government said, "Shri Maheshwar Hydroelectric Project (400 MW) near Mandleshwar town (Khargone district) is in violation of the conditions stipulated in the environmental clearance letter dated May 1, 2001. The aforesaid clearance letter had required the project authorities to submit a complete R&R (rehabilitation and resettlement) plan with details to this Minister by December 2001. This plan is yet to be submitted to this ministry."

The notice also said the monitoring committee had inspected the site and directed the project authorities to prepare a comprehensive R&R action plan with an implementation schedule and submit it before the financial closure is achieved and construction work is to be started.