Kerala - Palakkad   

Audit report finds irregularities in Meenvallom project

Staff Reporter

Says the project was started without obtaining required sanctions

PALAKKAD: The Local Fund Audit report has found major irregularities in the constitution of Palakkad Small Hydro Company Ltd., utilisation of fund and purchase of equipment for the Rs.3.5-crore Meenvallom mini-hydel project. This was the first mini-hydel project taken up by a district panchayat on the model of the Chinese mini-hydel projects at Meenvallom in Mannarkkad taluk, in 1999.

The district panchayat registered the Palakkad Small Hydro Company Ltd in January 1999. The project envisaged generation of 3 MW power from the waterfall at Meenvallom by constructing a 71.5-metre-long and 6.5-metre-high check dam on the Thuppanadu river.

The Audit report said even after six years of forming the company, it could not implement the project owing to various technical and legal problems.

Before taking steps to begin the project work, an amount of Rs.3.5 crore taken as loan was spent on buying machinery and pipes. An amount of Rs. 2 crore of the Plan fund allotted for the project has been lying unutilised without being of any benefit to the State.

The Audit report said a project like Meenvallom could be implemented by agencies like the Kerala State Electricity Board (KSEB), which has systems for generation, transmission and distribution of power. But a district panchayat, which has no such experience or facility, had taken up the project without examining its technical and legal implications, the report said. As per Section 173 of the Kerala Panchayati Raj Act, a district panchayat can take up micro-hydel project of 100 kW capacity for its local use. But the Meenvallom project is for generating 3 MW power at a cost of over Rs.10 crores. The district panchayat had started the project without obtaining the required sanctions from the Government and other authorities, the Audit report said.

The project was launched by the previous district panchayat ruled by the Left Democratic Front (LDF). The State Government led by the United Democratic Front (UDF) did not give permission to go ahead with the project as they refused to stand guarantee for the loan. As per the Panchayati Raj Act, the local body cannot stand guarantee for the loan taken for such a project.

After the LDF returned to power, the project was revived by the district panchayat ruled by the LDF. It was planning to sign a power purchase agreement with KSEB.

Though dates were announced to sign the agreement last week, it was cancelled and there is no information about when the pact will be signed.

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Audit report finds irregularities in Meenvallom project

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