Karnataka Power Corporation Ltd says followed all norms for country’s largest pumped storage power generation unit
A pumped power storage facility along Sharavathi river in Karnataka finds itself embroiled in controversy following allegations that Karnataka Power Corporation Ltd (KPCL) rushed through the tender process of the ambitious Rs 8,005-crore project without obtaining approval from crucial environmental authorities.
The tendering process for Sharavathi pumped storage, initiated on February 2, 2024, lasted only 21 days. The timeline provided for contractor inquiries and clarifications was notably brief, spanning just four days. Contractors, grappling with the complexity of the project and seeking vital clarifications, were left with minimal time to formulate their bids.
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Multinational conglomerate Larsen & Toubro (L&T) has now legally challenged the hasty tender process. L&T has now filed an application in the Karnataka High Court and an interim order now prohibits the opening of bid files until further directives are issued.
The application has also alleged the project has progressed without the requisite consent from the Union ministry of environment, forest and climate change and National Wildlife Board. Moreover, the acquisition of lands necessary for the project remains unresolved, further complicating matters.
Critics argue that such a large project, which includes extensive civil and electrical work, requires a more deliberate approach. Notably, Karnataka’s transparency rules require a minimum bidding period of 30 days for projects over Rs 2 crore.
Despite attempts to seek clarity from key officials, including state Energy Minister KJ George and Gaurav Gupta, additional chief secretary of the energy department, responses have been elusive.
When contacted, KPTCL superintending engineer D Shilpa, who is in charge of the project, said, “We gave 30 days’ time for the tender process. All the processes were done as per law and no norm was violated. Under the Karnataka Transparency in Public Procurements Act, 1999, there is a provision to invite and close tenders within 30 days.”
Shilpa confirmed L&T have approached the court to stop the tender process for the project.
The Sharavathi river is a vital source of hydroelectric power in Karnataka. Currently, the river generates a significant portion (40 per cent or 1,469.2 megawatts) of the state’s hydropower using seven existing dams and five tunnels.
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The pumped storage project, which aims to increase power generation through an innovative technology, involves repeatedly pumping water through eight hydropower plants with capacities of 250 megawatts each, with a planned total power generation capacity of 2,000 MW.
It is slated for implementation downstream of Linganamakki reservoir and Gerusoppa reservoir and entails the construction of an extensive underground tunnel and the eight power-generating units. Notably, a single tender encompasses all aspects of the project, including the design, engineering, and construction of power generation plants.
With a planned total power generation capacity of 2,000 MW, it is the country’s largest pumped storage power generation unit.
The project’s impact on the ecologically sensitive Western Ghats and Sharavathi Wildlife Sanctuary is especially concerning, prompting calls for a more cautious and transparent implementation approach. Sharavathi River Basin boasts a remarkable variety of life, including 200 plant species, 40 bird species and 130 butterfly species.
Bengaluru-based environmentalist Joseph Hoover said the presence of Myristica swamps nestled within the climax evergreen forests adds another layer of significance to the valley’s ecology. These unique wetland ecosystems further contribute to the remarkable biodiversity of the region.
Environmentalists had earlier pointed out that the project will destroy over 150 hectares of forest area in the Sharavathi lion-tailed macaque (LTM) sanctuary. While KPCL argues that the limited construction work (using existing reservoirs in Talakalale and Gerusoppa) minimises environmental damage, critics remain sceptical.
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Activist banner Jana Sangrama Parishat has also raised objections to the project, expressing concerns about its potential adverse effects on the forests in the Sharavathi Valley. Akhilesh Chipli, the district president of the Parishat and an environmentalist, said the project aims to pump water from the Gerusoppa reservoir to the Talakalale reservoir against gravity, with the aim of generating 2000 MW of power.
“We have been opposing the project for a decade, but the government planned to award the tender hurriedly to avoid opposition,” said Chipli. He also alleged the hurried tender worth crores of rupees raises suspicion of transparency in the project and urged the state government to abandon the project immediately.
“The haste in inviting the tenders leads to doubts about the intentions behind the project. The project cost was inititally over Rs 4,000 crore but the estimates have now doubled. Spending such an exorbitant amount of money serves only to benefit the corrupt,” Chipli further alleged.
The sanctuary plays a critical role in safeguarding the critically endangered LTM, along with other threatened species like the great Indian hornbill, said Hoover. A survey conducted in the early 2000s identified over 32 distinct LTM groups within the Honnavar division, situated north of the Sharavathi Valley.
Recognising the vital role the valley plays in LTM conservation, the government expanded the boundaries of the Sharavathi wildlife sanctuary in 2019. This expansion incorporated the reserve forests of the Honnavar and Sagar divisions, alongside the Aghanashini LTM Conservation Reserve, encompassing parts of both Uttara Kannada and Shivamogga districts.
Consequently, the sanctuary was renamed the Sharavathi Valley LTM Sanctuary, solidifying its position as one of the largest protected areas of tropical evergreen forest within the ecologically sensitive Western Ghats.
This region is recognised as one of the world’s eight global biodiversity hotspots, highlighting its immense importance for global conservation efforts. The Sharavathi Valley stands as a testament to the extraordinary diversity of life and the crucial need for continued protection of such irreplaceable ecosystems.
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The project’s roots can be traced back to the previous government led by Chief Minister Siddaramaiah, under the then Energy Minister DK Shivakumar, who is currently the deputy CM of the state. A proposal for the project was drafted with an initial estimated cost of Rs 4,862.89 crore. The detailed project report garnered approval in a state wildlife board meeting chaired by then CM BS Yeddyurappa in September 2019.
Despite languishing for four and a half years, the project gained renewed momentum upon the ascent of the incumbent Siddaramaiah-led Congress government. However, the revised project costs twice as much as the original estimate.
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