Corporation justifies cost escalation in report placed in Assembly
SHILLONG: The Meghalaya Energy Corporation Limited has claimed that the power generation from Myntdu Leshka station has helped in doing away with power cuts for 2013-14, a stark contrast to the ground reality in the state, which is reeling under load shedding.
In the forward to the report regarding the construction of Myntdu Leshka hydel project placed in the Assembly on Friday, the MeECL said, “The generation from Myntdu Leshka station
has also helped the MeECL avert load shedding during the year which would otherwise have been required in view of substantial power regulation”.
The claim of the MeECL also contradicts the statement made by Power Minister Clement Marak last month that Myntdu Leshka project is producing only 6-7 MW of power out of the total 126 MW as it was the lean season.
The MeECL brought out the report after the Opposition led by UDP legislator Paul Lyngdoh had demanded a white paper on the status of the project in April last year.
In the report, the MeECL justified the price escalation of the project and the reasons behind the delay.
“The project should have been completed in six-and-half years. In addition to the aggressive climatic condition, remoteness of the site and technical requirements (Acidity, Seismicity, Hydrology) an additional 12-15 months have been lost due to unprecedented floods on three occasions”, the report said.
The cost of Rs.363.08 crore was on price level in the year 1999. During the start of the project in
2004-05, the department has immediately prepared revised estimate which, according to MeECL may be treated as actual initial cost which had been approved by Central Electricity Authority (CEA) in 2007 at Rs.671.29 crore for 2×42 MW, the report said.
The report further said that the corresponding drastic increase in the quantity (especially dam) has also been scrutinized by IIT, Guwahati, on the instruction of the CEA.
According to the report, one of the reasons for increase of the cost from Rs.363.08 crore to Rs.671.29 crore was due to huge increase in the quantity of excavation, concreting and steel requirements for the dam which was noted by the CEA while approving the revised estimate.
“Similarly when more detail drawings were received for other components of the project like penstock pipe, anchor and saddles, the power house building quantities as provided have been noted to be insufficient”, the MeECL said.
Accordingly another revised estimate was made to accommodate the increased quantity. After the floods and extended completion time by 13 months the project cost was again revised to Rs. 1173.13 crore in 2010. The cost escalation was also following the addition of a third unit in the Leshka project.
The report said that after analyzing the rate of sale of power of generating stations in India during the year 2010-11, it was found that the rate per unit is above Rs.4 which is not uncommon.
The report further said that projects of similar capacity commissioned in the rest of the country are in the range of Rs.9-10 crore per MW.