Context

The Central Bureau of Investigation (CBI) conducted raids at 30 locations on Thursday (February 22) at three places linked to former Jammu and Kashmir Governor Satya Pal Malik. The agency is investigating alleged corruption in the award of a contract for the Kiru Hydel Project, in J&K’s Kishtwar district.

Details

Kiru Hydel Power Project

• It is being constructed between the existing Kirthai II (upstream) and Kwar (downstream) hydel power projects, at an estimated cost of Rs 4,287 crore.
• It will be developed near the convergence point of river Chenab and the Singad and Bela streams, near the Patharnakki and Kiru villages in Kishtwar district. The deadline for initiating commercial operations is July 2025.
• It will have a 123-m tall dam from the Chenab’s river bed level. Its reservoir will have a storage capacity of 41.5 million m³ of water.
• The project will have one 700 m-long, horse-shoe-shaped diversion tunnel for the release of excess water. An underground powerhouse located at the left bank of the river will have four turbines, with a capacity of 156 MW each, raising the total capacity to 624 MW.
• Apart from helping address the energy demand across northern India and the state’s rural areas, it could aid small-scale and cottage industries.

Who is developing the Kiru hydel project?

• The Chenab Valley Power Projects Private Limited (CVPPPL) is a joint venture of the National Hydroelectric Power Corporation, the Jammu& Kashmir State Power Development Corporation and the Power Trading Corporation. Both the NHPC and JKSPDC have a stake of 49 per cent each and the remaining 2 per cent is with the PTC.
• The Ministry of Environment Forests and Climate Change awarded the scoping clearance for the project in September 2008 and revalidated it for an installed capacity of 624MW in September 2015.
• It got environmental clearance from the ministry in June 2016 and received approval from the State Administrative Council (SAC) in January 2019. The foundation stone was laid the next month, with completion expected by 2023.
• RS Envirolink Technologies prepared the environmental impact assessment (EIA) and environmental management plan (EMP) reports in 2016, but the University of Jammu was involved in preparing the initial baseline data for the preliminary EIA and EMP.
• In October 2018, MGI Infra was awarded the contract to construct a temporary field hostel and site offices for officials.
• A construction company named Patel Engineering was awarded civil works worth more than Rs 2,200 crores for the construction of a diversion tunnel, concrete dam, pressure shafts, coffer dams, tailrace tunnels, and a powerhouse in 2019.
• The contracts for civil, hydromechanical and electromechanical works were awarded in February 2020.
• Hydromechanical work related was awarded to PES Engineers and electromechanical work worth more than Rs 600 crores was awarded to Andritz Hydro.
• Together, they cover the design, manufacturing, supply, erection, testing and commissioning of turbines, generators, etc.
• Some of the work, such as pilot excavation for a few of the pressure shafts, is completed, while riverbed excavation and dam concreting in the riverbed are in progress.

Corruption  allegations

• The award of civil works to Patel Engineering Ltd has been called into question. On its website, PEL calls itself a major infrastructure and construction company that was founded in 1949. Its areas of operation include dams, tunnels, bridges, refineries, real estate, and more.
• The CBI has booked then CVPPPL chairman and IAS officer Naveen Choudhary, MD MS Babu, and Directors M K Mittal and Arun Mishra, along with Patel Engineering.
• The FIR alleges that guidelines for e-tendering in the awarding of civil works in the project were not followed.
• A decision was taken for re-tender through reverse auction, where the bidder quoting the lowest price is to be awarded a contract.
• After the ongoing tendering process was cancelled, reverse auction through e-tendering was not implemented.
• The tender was finally awarded to M/s Patel Engineering. Further, allegations of substandard work and failure to provide jobs to local youth have been made against the hydel project.

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