Pallivasal Extension Project: Why the hurry to replace decade-old machinery bought for Rs 100 cr

Electricity bills
Electricity bills had come as a rude shock to many during the first phase of lockdown. Image courtesy: Sunshine Studio/Shutterstock

Pallivasal, Idukki: The Pallivasal Electric Project, the first hydro-electric project in Kerala, has been a significant source of power even before the state came into existence. Now, over a decade after new machinery was purchased for Rs 100 crore for the 60 MW Pallivasal Extension Scheme, a move is reportedly being made to discard these and procure new ones instead. The same machinery will cost at least four times that amount today, thus proving to be a drain on the coffers of the Kerala State Electricity Board Limited.

It is alleged some project officials are trying to swindle crores of rupees as commission with the help of middlemen by resorting to this move as part of the new project to build two units of 30 MW each.

Two machines, a generator and turbine, were imported at a cost of Rs 100 crore from Chinese firm DEC for the extension project in 2010. They have a guarantee period for three years. Under the supervision of Chinese technical experts, one of these machines was fully installed and the second partially installed then.

The officials claim that the Chinese firm's technical experts are required to carry out the remaining works on installing the machines. But as the guarantee period has lapsed, they cannot be relied for maintenance.

Extension project stalls

The Pallivasal Electric Project was commissioned in 1940. The work on the Pallivasal Extension Scheme started in 2007 and the contract was to commission it in March 2011. But due to the disputes with the contract company, the construction dragged on indefinitely. The first estimated project cost was Rs 268 crore. But with the construction dragging on, the current estimated cost is Rs 550 crore.

The construction moved at a snail's pace till 2014 and came to complete halt by mid-2014. After former project manager Jacob Muthirenthikkal approached the High Court, the construction was resumed in January 2018.

The new contract for the construction of the tunnel was awarded to a Chennai-based company, Bhoomi Constructions. The tunnel construction was completed last April.

The aim was to commission the project in 2020. After the construction of the powerhouse began, certain officials took the stance that new machines need to be procured and the old ones replaced.

The KSEBL, which is incurring a daily revenue loss of Rs 50 lakh as the extension project, which is expected to generate 1.44 million units of power per day, is yet to be at full stream.

There is also a plan to divert water from Pallivasal to the Chenkulam powerhouse for generating electricity. A daily loss of Rs 50 lakh is estimated at this site too as power generation gets delayed.

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