Shillong, July 3: Power Minister AT Mondal has rejected the demand for an independent inquiry into the alleged unprecedented cost escalation of the 22.5-megawatt Ganol Small Hydro Project.
The Leader of Opposition, Mukul Sangma, had requested the inquiry – citing that the government has revised the project cost multiple times leading to an unprecedented escalation from Rs 356.43 to Rs 590.88 crore – but Mondal said there’s no need for one.
Speaking to media persons on Thursday, Mondal said the project’s cost escalation is not unusual for hydro power projects, and the costs have been thoroughly vetted by IIT Guwahati and audited by the AG’s empanelled arbitrator.
The cabinet has taken a decision to close the project, considering its current generation status and potential future issues.
“Many times in many hydro power projects cost escalation is there and whatever the cost has been done, it has been sent and vetted by the IIT Guwahati. The AG’s empanelled arbitrator also audited the entire account and accordingly cabinet has taken a decision to close the Ganol project because it is now generating (power). If we hang on, then many other issues may crop in also, so it has been close with that account. So these things are there,” the minister stated.
On the reasons behind cost escalation, Mondal said it was due to changes in the project’s design. Initially, the project was planned with a surface-type channel, but the CWC later recommended an underground tunnel. This change led to additional costs, including those related to geological surprises.
“Earlier it was decided to go for something like a surface type of channel to take the water to turbines, and then ultimately CWC told that you go for underground. So when you go for underground there may be geological surprises also,” he added.
When asked about the possibility of a white paper on the matter, Mondal stated that there’s nothing to hide, as the project costs have been thoroughly vetted and audited.
He emphasized that while there was some cost escalation, the project’s benefits to the state over its lifespan outweigh the costs.
