KSEB Cancels Contract Over Delays in Bhoothathankettu Hydro Project

30 Apr 2025 CW Team

The KSEB board approved the cancellation of all agreements, including a tripartite contract signed with Sree Saravana Engineering Bhavani Ltd. (SSEB), Tamil Nadu, and Hunan Zhaoyang Generation Equipment Company Ltd., China. The decision follows an extended dispute concerning the final consignment of equipment from China.

Based on recommendations from the National Hydro Power Corporation (NHPC), the KSEB will now seek new bids for supplying the remaining equipment, either from Chinese manufacturers or alternate sources. If these efforts do not succeed, the utility may consider dismantling existing machinery and re-tendering for fresh installations.

The original Rs 818 million contract was signed in March 2015 with a planned completion timeline of 18 months. Despite multiple deadline extensions, the latest target of 31 March 2023 was also missed. As per officials, around 86.61 per cent of the work has been completed so far.

While two shipments from China were received, the third consignment was delayed due to contractual disagreements. In 2024, the Chinese partner informed KSEB that the equipment had been sold to another Chinese company, ChangSha XingYue Electrical and Mechanical Equipment Co. Ltd. Attempts to resolve the issue through further discussions were unsuccessful, and KSEB cited significant lapses by SSEB as the primary reason for the project's delay.

To date, KSEB has spent approximately Rs 1.69 billion on civil and electromechanical work for the project, which remains non-operational, generating neither interest nor electricity. The utility noted that the delay has broader implications for Kerala’s power sector and warrants public concern.

The Bhoothathankettu project, located in Kothamangalam, is a run-of-the-river hydroelectric scheme utilising the storage reservoir of the Periyar Valley Irrigation Project.

The Kerala State Electricity Board (KSEB) has terminated its contract with a consortium of Indian and Chinese firms after prolonged delays in completing electromechanical works for the 24 megawatt (MW) Bhoothathankettu small hydroelectric project.The KSEB board approved the cancellation of all agreements, including a tripartite contract signed with Sree Saravana Engineering Bhavani Ltd. (SSEB), Tamil Nadu, and Hunan Zhaoyang Generation Equipment Company Ltd., China. The decision follows an extended dispute concerning the final consignment of equipment from China.Based on recommendations from the National Hydro Power Corporation (NHPC), the KSEB will now seek new bids for supplying the remaining equipment, either from Chinese manufacturers or alternate sources. If these efforts do not succeed, the utility may consider dismantling existing machinery and re-tendering for fresh installations.The original Rs 818 million contract was signed in March 2015 with a planned completion timeline of 18 months. Despite multiple deadline extensions, the latest target of 31 March 2023 was also missed. As per officials, around 86.61 per cent of the work has been completed so far.While two shipments from China were received, the third consignment was delayed due to contractual disagreements. In 2024, the Chinese partner informed KSEB that the equipment had been sold to another Chinese company, ChangSha XingYue Electrical and Mechanical Equipment Co. Ltd. Attempts to resolve the issue through further discussions were unsuccessful, and KSEB cited significant lapses by SSEB as the primary reason for the project's delay.To date, KSEB has spent approximately Rs 1.69 billion on civil and electromechanical work for the project, which remains non-operational, generating neither interest nor electricity. The utility noted that the delay has broader implications for Kerala’s power sector and warrants public concern.The Bhoothathankettu project, located in Kothamangalam, is a run-of-the-river hydroelectric scheme utilising the storage reservoir of the Periyar Valley Irrigation Project.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..