STAFF REPORTER
GUWAHATI: The State Government’s failure to follow the statutory and policy requirements in the execution of hydropower projects has cost it dearly, with five of its small hydropower projects facing either abandonment or suspension.
According to official sources, the Congress government in the state started work on six projects in 2010–11 under its small hydropower development policy. However, only one of the six hydropower projects is complete. The locations of the six projects are: Bordikorai (4.7 MW), Desang (9 MW), Dronpara (1.6 MW), Pohumara (2 MW), Kolong (6 MW), and Champamati (4 MW). The total cost of the six projects was Rs 2.32 crore. Two of the remaining five projects faced abandonment due to non-receipt of forest clearance; the incapacity of the contractors led to the suspension of two projects; and an undisclosed reason led to the suspension of one project.
According to the findings of the CAG, the State Government was executing the five projects in contravenes of the provisions of the small hydropower development policy. The government signed an MoA (Memorandum of Agreement) with Infrastructure Lease and Financial Services Ltd. (IL&FSL) as the nodal agency for the development of all six projects instead of the APGCL (Assam Power Generation Corporation Ltd.).
The CAG observed that APGCL, being a wholly state-owned entity with expertise in the implementation of hydropower projects, was mandated under the policy to act as the nodal agency for execution and monitoring the hydropower projects. As such, the selection of IL&FSL by the Government of Assam as a joint venture partner for the execution of hydroelectric projects contravenes the provisions of the policy.
According to sources, beginning the work on the projects without getting clearance from the forest department and without knowing the capacity of the contractors led to their failures.
The CAG also said that the State Government making repayment of the SBI loan amounting to around Rs 24 crore is an ‘undue favour’ to NECCON for the abandoned Bordikorai project, as the company, which was not supposed to carry out any major work on the projects until receiving all statutory clearances within the stipulated 24 months, opted to go ahead with the project work. “Hence, the claim of NECCON for repayment of the SBI loan taken for the project work was not justified and should not have been entertained by the Government of Assam,” the CAG said.
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