KSEB Cancels Contract Over Delays in Bhoothathankettu Hydro Project
30 Apr 2025
2 Min Read
CW Team
The Kerala State Electricity Board (KSEB) has terminated its contract with a consortium of Indian and Chinese firms after prolonged delays in completing electromechanical works for the 24 megawatt (MW) Bhoothathankettu small hydroelectric project.
The KSEB board approved the cancellation of all agreements, including a tripartite contract signed with Sree Saravana Engineering Bhavani Ltd. (SSEB), Tamil Nadu, and Hunan Zhaoyang Generation Equipment Company Ltd., China. The decision follows an extended dispute concerning the final consignment of equipment from China.
Based on recommendations from the National Hydro Power Corporation (NHPC), the KSEB will now seek new bids for supplying the remaining equipment, either from Chinese manufacturers or alternate sources. If these efforts do not succeed, the utility may consider dismantling existing machinery and re-tendering for fresh installations.
The original Rs 818 million contract was signed in March 2015 with a planned completion timeline of 18 months. Despite multiple deadline extensions, the latest target of 31 March 2023 was also missed. As per officials, around 86.61 per cent of the work has been completed so far.
While two shipments from China were received, the third consignment was delayed due to contractual disagreements. In 2024, the Chinese partner informed KSEB that the equipment had been sold to another Chinese company, ChangSha XingYue Electrical and Mechanical Equipment Co. Ltd. Attempts to resolve the issue through further discussions were unsuccessful, and KSEB cited significant lapses by SSEB as the primary reason for the project's delay.
To date, KSEB has spent approximately Rs 1.69 billion on civil and electromechanical work for the project, which remains non-operational, generating neither interest nor electricity. The utility noted that the delay has broader implications for Kerala鈥檚 power sector and warrants public concern.
The Bhoothathankettu project, located in Kothamangalam, is a run-of-the-river hydroelectric scheme utilising the storage reservoir of the Periyar Valley Irrigation Project.
The Kerala State Electricity Board (KSEB) has terminated its contract with a consortium of Indian and Chinese firms after prolonged delays in completing electromechanical works for the 24 megawatt (MW) Bhoothathankettu small hydroelectric project.The KSEB board approved the cancellation of all agreements, including a tripartite contract signed with Sree Saravana Engineering Bhavani Ltd. (SSEB), Tamil Nadu, and Hunan Zhaoyang Generation Equipment Company Ltd., China. The decision follows an extended dispute concerning the final consignment of equipment from China.Based on recommendations from the National Hydro Power Corporation (NHPC), the KSEB will now seek new bids for supplying the remaining equipment, either from Chinese manufacturers or alternate sources. If these efforts do not succeed, the utility may consider dismantling existing machinery and re-tendering for fresh installations.The original Rs 818 million contract was signed in March 2015 with a planned completion timeline of 18 months. Despite multiple deadline extensions, the latest target of 31 March 2023 was also missed. As per officials, around 86.61 per cent of the work has been completed so far.While two shipments from China were received, the third consignment was delayed due to contractual disagreements. In 2024, the Chinese partner informed KSEB that the equipment had been sold to another Chinese company, ChangSha XingYue Electrical and Mechanical Equipment Co. Ltd. Attempts to resolve the issue through further discussions were unsuccessful, and KSEB cited significant lapses by SSEB as the primary reason for the project's delay.To date, KSEB has spent approximately Rs 1.69 billion on civil and electromechanical work for the project, which remains non-operational, generating neither interest nor electricity. The utility noted that the delay has broader implications for Kerala鈥檚 power sector and warrants public concern.The Bhoothathankettu project, located in Kothamangalam, is a run-of-the-river hydroelectric scheme utilising the storage reservoir of the Periyar Valley Irrigation Project.
Next Story
HCL-Foxconn to invest Rs 37 billion in chip plant near Jewar airport
The Union Cabinet has approved the establishment of a new semiconductor unit near Jewar airport in Uttar Pradesh under the India Semiconductor Mission. This sixth plant, a joint venture between HCL and Foxconn, marks further progress in India鈥檚 semiconductor journey. The project will see an investment of Rs 37 billion.The facility will produce display driver chips for mobile phones, laptops, automobiles, PCs, and other digital devices. It is designed for a monthly capacity of 20,000 wafers and an output of 36 million units.Five semiconductor units are already in advanced stages of constructi..
Next Story
Brigade acquires Velachery land for Rs 16-billion project
Brigade Enterprises has acquired a 5.41-acre land parcel on Velachery Road, Chennai, through an outright purchase for Rs 4.417 billion. Located next to Phoenix Market City, the site will be developed into a premium residential project with a gross development value of approximately Rs 16 billion and a development potential of 0.8 million square feet.The project offers strategic access to both the OMR IT Corridor and Chennai鈥檚 Central Business District, promising strong connectivity and premium lifestyle offerings. Brigade plans to create signature residences focused on aesthetics, functional..
Next Story
Liebherr marks 10,000th XPower wheel loader milestone
Liebherr-Werk Bischofshofen has rolled out its 10,000th XPower wheel loader, marking a major production milestone. The anniversary L 580 XPower model, featuring a power-split travel drive developed with ZF Friedrichshafen AG, was handed over to the BERGER Group in Passau.鈥淭he transmission from our partner ZF is a key component of the drivetrain in our XPower wheel loaders,鈥� said Gerhard Pirnbacher, Head of Quality Management at Liebherr. 鈥淲ith an impressive total of around 64 million operating hours already clocked up by XPower models, this transmission has proven its exceptional robustn..
