Sharavathi Project Controversy: Legal, Environmental, and Financial Hurdles
L&T Questions KPCL’s Award to MEIL
The Karnataka High Court dismissed a petition by Larsen and Toubro (L&T) challenging Karnataka Power Corporation Limited’s (KPCL) award of the Rs 8,005 crore Sharavathi Pumped Storage and Hydroelectric Project to Megha Engineering and Infrastructure Limited (MEIL). L&T alleged violations in the bidding process, including reduced timelines for submissions and clarifications.
Environmental Concerns and Missing Approvals
Activists and L&T highlighted the lack of necessary approvals from the Union Ministry of Environment, Forest and Climate Change and the National Wildlife Board. Environmental groups, such as Jana Sangrama Parishat, warned about potential damage to the Sharavathi Valley forests.
Dubious Bank Guarantee Under Scrutiny
MEIL provided a bank guarantee from Euro Exim Bank, a financial institution under investigation by the Reserve Bank of India and Enforcement Directorate for alleged fraudulent activities. Despite the bank's limited worth, it issued significant guarantees across multiple projects.
Escalating Costs and Fast-Tracked Approvals
The project’s cost doubled from its initial estimate of Rs 4,862.89 crore. The Central Electricity Authority approved the Detailed Project Report in just 15 days, much faster than the standard one-month period. MEIL received an advance of Rs 600 crore, though progress has been slow.
Energy Department Backs Pumped Storage
The Energy Department highlighted the flexibility of pumped storage hydropower to balance electricity demand. The Sharavathi project, with a 2,000 MW capacity, will use Talakalale as the upper reservoir and Gerusoppa as the lower dam, with an expected five-year completion timeline. For further details, read the full report on
