KSEB Cancels Contract Over Delays in Bhoothathankettu Hydro Project
POWER & RENEWABLE ENERGY

KSEB Cancels Contract Over Delays in Bhoothathankettu Hydro 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.

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.

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?