Initial estimate of Rs 356.46 cr revised to Rs 507.7 cr by 2019: Mukul Sangma
SHILLONG, July 3: The state government on Tuesday dismissed allegations of a scam in the 22.5 MW Ganol Small Hydropower Project, attributing the cost escalation to technical revisions while stating that all financial matters were properly vetted by competent authorities.
Power Minister AT Mondal, responding to criticisms, said there appeared to be no irregularities in the project’s execution. “Cost escalation happens in hydropower or other projects. The cost has been vetted by the IIT Guwahati,” he stated.
He maintained that the financial records were thoroughly examined. “The Accountant General-empanelled auditor also cleared the entire account. Accordingly, the Cabinet has decided to close the Ganol project because it is now generating, and if we hang on, many other issues may crop up,” he said.
The project has come under fire from the Leader of Opposition, Mukul Sangma, who has demanded an independent inquiry into what he termed a “massive cost escalation”. He pointed out that the project, currently generating 1 MW of power, has incurred expenses exceeding Rs 26 crore per MW.
Sangma also recalled that the initiative was launched by the Congress-led government in 2010 and continued until 2014.
“When the project was initiated, it was estimated to cost Rs 356.46 crore and scheduled to be completed by December 2018,” he said.
However, he said that when the project was scheduled to be completed, the incumbent government came up with a petition for revision of cost, and the project cost was revised to Rs 507.7 crore in 2019.
The state Cabinet recently approved an additional Rs 30 crore to clear pending dues related to the project.
Addressing the cost surge, Mondal explained that the initial surface-level design of the project underwent significant changes following recommendations by the Central Water Commission (CWC). The agency advised the shift to a tunnel-based system, which led to increased expenditure.
He noted that such design modifications and other technical adjustments collectively contributed to the higher project cost.
The minister reiterated that all changes were transparent and had been subjected to scrutiny. “It was vetted by the IIT Guwahati and audited by the AG-empanelled auditor,” he said.
He cited similar cost escalations in other hydropower projects, including Leshka, emphasising that hydro projects are often influenced by unforeseen factors. Despite the cost concerns, he argued that the long-term utility of such projects makes them valuable investments for the state.
On the question of geological surprises, Mondal said the project’s original design included a channel to direct water to the turbines. However, after a site inspection, officials of the CWC advised an underground layout.
He explained that geological conditions may only emerge during execution, and the scheme itself was not designed with such complexities at the outset. The move to adopt a more complex structure came only after the CWC’s involvement.