(Feature Image: Construction site of 382 Mw Sunni Hydro project on Sutlej river in Himachal Pradesh. Source: Social Media)
This annual overview focusses on important reports highlighting the corruption issues related to the hydro and dam projects in India in 2024. The electoral bond case has revealed the deep nexus among political parties, contractors and financers as dominant force working behind the projects overlooking the evident disaster risks and undermining the democratic process. As a result, the people, rivers and environment are made to bear the burden and burnt.
The part 1 of the yearend roundup has documented the accidents and disasters related to dam and HEP projects in India in 2024. The part 2 focuses on community resistance against hydro projects in Himalayan states. The part 3 covers the struggle of dam projects affected people. The part 4 highlights growing concerns against pump storage projects.
2024: Reports on Corruption in Dams & Hydro Projects
Electoral Bonds disclosures confirm political economy of large dams The Electoral bonds details now in public domain, thanks to the Supreme Court of India orders, has once again highlighted the political economy of large dams, hydropower projects and irrigation projects. It has once again confirmed what was publicly known that such large water projects involve kickbacks to political parties, among others.
The details so far available involves companies like Megha Engineering, Rithwick Projects Pvt Ltd, Navayuga Engineering Company Ltd, among others. The projects so far that seems to be involved include Polavaram Dam, Kaleshwaram Lift Irrigation Project, Sunni Dam and Hydro projects, Tapovan Vishnugad Hydro project, Kundah Pump Storage Hydropower project in Tamil Nadu and Silkyara Tunnel, almost all of them also involved in some kind of disaster.
These details (more likely to come to light in days to come) confirm the political economy of such large dams, irrigation projects, hydropower projects, among others. The Supreme Court had hinted at the quid pro quo that such donations can involve. We hope the judiciary will take note of the nexus and take steps to correct this. https://sandrp.in/2024/03/18/drp-nb-180324-electoral-bonds-disclosures-confirm-political-economy-of-large-dams/ (18 March 2024)
Energy companies fueling purses of political parties Companies involved in the energy business in India donated over Rs 3,600 crores to political parties since the inception of the electoral bonds. Together, their share is nearly 30% of the total donations through electoral bonds. These companies are involved in projects across sectors, such as mining, coal, gas, thermal power, solar and wind power, hydropower, transmission lines, electric mobility, and smart meters. The list also includes Telangana-based industrial conglomerate, Megha Engineering and Infrastructures Limited (MEIL), which has emerged as the second-biggest donor of the political parties. The group is involved in projects related to irrigation, hydrocarbons, electric buses, communications, power (hydro, thermal, and renewable), etc. https://www.reporters-collective.in/trc/energy-companies-fueling-purses-of-political-parties (16 March 2024)
MEIL, 2nd largest buyer of EBs is in dams, irrigation projects MEIL bought a total of Rs 966 crore worth of bonds between 2019-20 and 2023-24. The unlisted private firm was founded in 1989 by industrialist Pamireddy Pitchi Reddy as Megha Engineering Enterprises, manufacturing pipes for municipalities. The company is contractor in some of the biggest dams and irrigation projects of India like the Polavaram dam in AP and Kaleshwaram LIS in Telangana, Kundah Pump Storage Project in TN, among others. According to a Crisil report, as of September 31, 2023, MEIL had an order book of Rs 1.87 lakh crore. https://www.businesstoday.in/latest/corporate/story/megha-engineering-started-business-with-just-rs-5-lakh-now-2nd-largest-buyer-of-electoral-bonds-421775-2024-03-17 (17 March 2024)
Himachal Pradesh How hydro projects sold dubious carbon credits A recent report found that several of these projects had offset no carbon dioxide or less than the amount they were supposed to offset. In April, a German non-profit, CORRECTIV, published a report that analysed 65 projects across the world registered in a popular registry named Verra, a privately run not-for-profit headquartered in Washington, DC. These projects, which included Karcham Wangtoo and Baspa II, had sold credits to German oil & gas companies, such as Rhein Energie Trading GmbH & Stadtwerke Duisburg AG.
CORRECTIV found that over 10 million credits issued for these projects had offset either no carbon dioxide or less than the amount they were supposed to offset. Fifteen of the projects were in India, where 3.8 million credits were found to have offset no carbon or less than the amount they were supposed to have offset. An overwhelming 76% of these credits were from four hydro projects – Karcham Wangtoo, Baspa II, Allain Duhangan and Malana, all in Himachal Pradesh. https://scroll.in/article/1070568/how-hydropower-projects-in-himachal-sold-dubious-carbon-credits (16 July 2024)
RPPL bought ₹45cr bonds after bagging Sunni HEP contract Rithwik Projects Private Limited (RPPL) a company founded by BJP Rajya Sabha MP from Andhra Pradesh, C.M. Ramesh, purchased electoral bonds worth ₹5 crore weeks after it bagged the ₹1,098-crore Engineering, Procurement and Construction (EPC) contract for the Sunni hydroelectric project. This tranche was purchased just ahead of the Assembly elections in Tripura, Meghalaya, and Nagaland. Two months later, the company again purchased bonds worth ₹40 crore.
RPPL, on March 31, 1999, was awarded the EPC contract on January 14, 2023, just days after another project that it was involved in – the Tapovan Vishnugad HEP in Chamoli, Uttarakhand — ran into controversy following the collapse of roads and homes at Joshimath, a town located close to the project site. Towns people and some experts blamed the underground tunnelling at an ecologically sensitive site for Joshimath’s gradual subsidence, aside from several other reasons.
Days after the news dominated national media, and less than two weeks after being awarded the Sunni Dam contract, RPPL purchased five bonds of ₹1 crore each on January 27, 2023. Rithwik Projects purchased another tranche of 40 bonds on April 11, 2023 worth ₹40 crore. This was just ahead of the Karnataka Assembly elections. The Cabinet Committee on Economic Affairs (CCEA) approved the ₹2,614 crore Sunni HEP on January 4, 2023, and Rithwik Projects was awarded the construction contract 10 days later. https://www.thehindu.com/news/national/bjp-mp-cm-ramesh-45-crore-electoral-bonds-contract-sunni-dam/article67958367.ece (16 March 2024)
After Rs. 1098cr EPC contract for Sunni HEP, RPPL bought Rs. 5cr bonds -Last year, just two weeks before Rithwik Projects purchased electoral bonds to the tune of Rs 5 crore, the company was awarded a letter of contract for a HEP project in Himachal on January 14. On March 23, SVJN Limited inked a contract agreement worth Rs 1,098 crore for the same project. And three weeks later, Rithwik Projects again donated money, this time with bonds to the tune of Rs 40 crore.
-Rithwik deals in areas ranging from mining and irrigation to highways and infrastructure. Ramesh claims to have no involvement in the affairs of Rithwik since 2012. However, his brother is still the executive director and his son Rithwik as the lead of operations. The income tax department had in 2018 accused Rithwik Projects of siphoning off Rs 74 crore through untraceable transactions and of dubious bills to the tune of Rs 25 crore. https://www.newslaundry.com/2024/03/16/bjp-mps-infra-firms-rs-45-cr-in-bonds-a-hydropower-project-and-curious-case-of-u-turns (16 March 2024)
Scam in Sainj HEP compensation A fraudulent compensation scam, amounting to Rs 15 lakh, has been exposed by the vigilance dept in the 100 MW Sainj HEP. The investigation has led to the registration of an FIR against seven individuals, including three retired engineers of HPPCL. The case pertains to payments made in 2007-08 for two houses that did not exist. https://bnnbreaking.com/politics/himachal-pradesh-hydro-power-project-scam-unraveling-a-web-of-fraud (18 Feb. 2024) Sources said landowners Radhey Shyam and his sons Gaurav Kapoor and Gunjan Kapoor allegedly pocketed extra compensation of Rs 15 lakh for showing two houses on their land which never existed. They had hired engineer BD Gupta, who had prepared the estimate. Three engineers, including a manager and a deputy manager of the HPPCL, all now retired, allegedly assisted the owners. An FIR in the case, which was being investigated by the Vigilance for long, has been registered at Vigilance police station in Kullu. https://www.tribuneindia.com/news/himachal/hp-power-corp-paid-15-lakh-for-fake-houses-7-booked-592201 (19 Feb. 2024)
Why financing environmentally damaging HEPs? The State Bank of India is the lead financier for stage one of the SJVN’s 210 Mw Luhri HEP in Kullu. The fact that the bank has not been visible in the discussions about the effects of the project highlights the unwillingness of Indian financial institutions to take responsibility for the human and ecological consequences of their investments. This is clearly a major example of corruption. https://scroll.in/article/1065582/by-financing-environmentally-damaging-projects-can-indian-funders-be-held-liable (04 April 2024)
Jammu & Kashmir Kiru HEP: CBI raids 8 places CBI has conducted searches at around eight locations in Delhi and J&K in the ongoing investigations of a case related to alleged irregularities in the award of tender for civil works of 624 MW Kiru HEP in Kishtwar district being executed by Chenab Valley Power Projects (P) Ltd (CVPPPL). The instant case was registered on the basis of a reference received from government of J&K against then chairman, then MD, then directors of CVPPPL, a private company and unknown others. “It was also alleged that though a decision was taken in the 47th board meeting of CVPPPL for re-tender through e-tendering with reverse auction, after cancellation of ongoing tendering process, same was not implemented & the decision of 47th board meeting, was reversed in the 48th board meeting,” said the spokesperson. https://www.hindustantimes.com/cities/chandigarh-news/kiru-hydroelectric-project-case-cbi-raids-8-places-in-delhi-jk-101706555647068.html (30 Jan. 2024)
CBI searches over ‘corruption’ in Kiru HEP CBI on Feb. 22 claimed to have found evidence of huge cash stash, fixed deposits and investments in properties in various cities during searches it carried out at over 35 locations, including premises linked to J&K ex-governor Satya Pal Malik, in connection with its probe into alleged corruption in awarding civil work contract for the Rs 2,200 cr Kiru HEP being executed by CVPPPL.
The places searched included Malik’s ancestral house in western UP’s Baghpat. Evidence gathered was both digital and documentary, CBI sources said. The case arose out of Malik’s disclosure of having been offered a Rs 200-cr bribe for clearing two files related to the project. https://timesofindia.indiatimes.com/india/cbi-searches-jk-ex-governor-premises-over-corruption-in-hydel-project/articleshow/107923952.cms (23 Feb.2024)
Sikkim Holding financiers accountable for bankrolling big HEPs As the Teesta III dam in north Sikkim is about to be rebuilt, public sector development finance institutions are yet again lining up to bankroll the reconstruction. This investment plan raises serious concerns because it ignores the web of climate risks, financial and ecological costs and harmful socio-economic impact associated with the project, tragically demonstrated in last year’s devastating Glacial Lake Outburst Flood, which devastated hundreds of lives still struggling to recover. https://india.mongabay.com/2024/12/commentary-holding-financiers-accountable-for-bankrolling-big-hydro-projects/ (04 Dec. 2024)
NHPC ED attaches assets worth Rs 47 lakh of ex-CGM -The Enforcement Directorate (ED) has attached assets worth Rs 47 lakh belonging to Harjeet Singh Puri, former chief general manager of National Hydroelectric Power Corporation (NHPC), in a disproportionate assets case. Puri, who misused his power and position to acquire assets beyond his known sources of income, had his four immovable properties in Faridabad and Ludhiana districts of Punjab and Haryana attached under the Prevention of Money Laundering Act (PMLA). “The total value of the disproportionate asset is estimated to be around Rs 1.04 crore,” the official said, adding that further investigation is under progress. https://www.tribuneindia.com/news/india/ed-attaches-assets-worth-rs-47-lakh-of-nhpcs-ex-cgm/ (03 Jan. 2025)
Maharashtra Opposition alleges ₹1,400 cr scam in Kondhane Dam project On Tuesday (Oct. 1), the opposition leader in the Legislative Assembly, Vijay Wadettiwar, accused the MahaYuti government of a ₹1,400 crore scam in CIDCO’s Kondhane dam project. Mr. Wadettiwar claims that the government favoured Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL), calling the company the ‘beloved contractor’ of the administration, and accused the alliance of using the project to raise election funds.
The Congress leader also demanded a thorough investigation into the Kondhane dam project works. He detailed the events surrounding the Kondhane dam project, accusing that CIDCO, one of the State’s most financially powerful entities, after paying ₹100 crore to the original contractor for 35% of the work, abruptly changed the project’s specifications, deciding to construct an RCC (reinforced cement concrete) dam instead of a soil-based dam. “The project cost then escalated from ₹700 crore to ₹1,400 crore to benefit Megha Engineering,” the Congress leader accused.
“This company is expanding into irrigation, transportation, and power sectors, and is being given projects in Nagpur, Pune, and other regions,” he said, suggesting that the company’s influence stems from its status as a major buyer of electoral bonds. In the form of electoral bonds, the MEIL donated ₹584 crore to the BJP (60% of its donations) – the most by a donor for any single party. It also donated ₹195 crore to the Bharat Rashtra Samithi (20% of its donations), and ₹85 crore to the DMK (8.8%). https://www.thehindu.com/news/national/maharashtra/maharashtra-opposition-leader-vijay-wadettiwar-alleges-1400-crore-scam-in-kondhane-dam-project/article68705033.ece (01 Oct. 2024)
Telangana After 5 year gap SC to hear plea on ₹35K cr PRRLIS irregularities -More than five years after it issued notices to the state govt, Bharat Heavy Electricals Limited (BHEL) and MEIL to respond to allegations in connection with an alleged Rs 35,000 crore scam in the Palamuru-Rangareddy Lift Irrigation Scheme (PRRLIS), the Supreme Court has directed the state government and BHEL to produce the original files related to the project.
-A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar issued the order on 18 December. Additionally, the bench also ordered BHEL to file an affidavit detailing the equipment it manufactured and supplied, and the payments received for the project.
-The court is seized of an appeal filed by former MLA Nagam Janardhan Reddy in which he challenged the state high court order dismissing his PIL demanding a probe by the CBI into the alleged PRRLIS scam. In 2017, when Reddy was part of the BJP, he had moved a PIL in the high court, challenging the contract awarded to a joint venture between BHEL and MEIL. He had alleged that it caused a loss of over Rs 2000 crore to the public exchequer, claiming that the state had “fraudulently revised the value of the equipment to be used in the project from Rs 5,960 crore to Rs 8,386 crore”. https://theprint.in/judiciary/telangana-irrigation-project-at-the-centre-of-rs-35000-cr-scam-under-scs-scanner-5-yrs-after-notice/2418932/ (26 Dec. 2024) 121996
Kerala Opposition Leader alleges corruption in Maniyar HEP deal Kerala’s Leader of the Opposition V.D. Satheesan has accused the govt of big-ticket corruption in “ceding operational and commercial control” of the Maniyar HEP to a private company. He demanded that the govt roll back its decision or face street agitations. In a statement here on Friday (Dec 13), Mr. Satheesan said the Kerala State Electricity Board (KSEB) had contracted the private firm Carborundum Universal in 1994 to build and operate the HEP for 30 years, after which the State would assume ownership of the facility.
The original agreement stated that the State should have assumed project control in 2024. However, the LDF govt overruled KSEB’s objections and extended the firm’s contract until 2049, he said. Mr. Satheesan said CM Pinarayi Vijayan and Electricity Minister K. Krishnankutty had “arbitrarily” extended the contract without consultations and with a corrupt motive. He alleged that Industries Minister P. Rajeeve brokered the “illicit deal,” which has deprived the financially ailing KSEB of much-needed revenue. Mr. Satheesan claimed that the KSEB had served notice on Carborundum Universal for allegedly breaking the contract agreement. He said the public utility had generated several cautionary red flags to alert the govt against extending the company’s contract. However, the govt “ignored” the warnings. https://www.thehindu.com/news/national/kerala/kerala-opposition-leader-vd-satheesan-alleges-corruption-in-maniyar-hydroelectric-project-deal/article68980919.ece (13 Dec. 2024)
Compiled by Bhim Singh Rawat (bhim.sandrp@gmail.com)
SANDRP 