Maheshwar Hydro Electric Project Chronology of Events

Maheshwar Hydro Electric Project (400 MW) located in Khargone and

Khandwa Districts of Madhya Pradesh. The project in question involves the construction of a 35m high barrage and a ‘barrage toe’ powerhouse and installation of 10 units of 40 MW capacities each. The back waters of the Sardar Sarovar Project extend up to Maheshwar Project. However the same has become the subject of much controversy due to the complete violation of the terms under which clearance was granted.

A total of 61 villages will be affected due to this project. Of these only in 22 villages abadi will be affected. 13 villages will come under full submergence, while 9 villages will be partially submerged. In remaining 39 villages only land will be submerged. According to the agreement with the State Government the R&R work will be dealt/ implemented by Madhya Pradesh Electricity Board, but fund will be provided by M/s Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL).

• December 1983-June 1986: The project was first referred to the Ministry by the Central Electricity Authority in December, 1983. Since the Environment Management Plans were not submitted despite repeated reminders, the scheme was rejected in June, 1986.

• 1992: The plans were resubmitted by the project authorities with Environment Action Plans on Catchment Area Treatment and Rehabilitation. The project was preliminary accorded environmental clearance in May, 1992 to Madhya Pradesh Electricity Board, Jabalpur stipulating that necessary survey and studies be undertaken for evolving comprehensive Environmental Management Plan (EMP) to be implemented pari-passu with the project work.

• January 1994: On the basis of EMP submitted by State Government through Narmada Valley Development Authority (NVDA), Bhopal, the Maheshwar Hydel Project was accorded environmental clearance vide office memorandum dated 7th January, 1994 to Narmada Valley Development Authority (NVDA) subject to certain conditions.

• May 2001: Subsequently, the NVDA decided to execute the project through the private sector and requested the MoEF to transfer the clearance granted to the M/s S. Kumars, Bombay. The said organization has formed Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL) for implementation of the project. The Environmental Clearance letter was transferred in favour of M/s SMHPCL on 1st May, 2001, subject to the

strict implementation of certain conditions and safeguards for the protection of the environment.

• May 2001: MoEF constituted a Monitoring Committee under the chairpersonship of Smt. Nirmala Buch, former Chief Secretary, Government of Madhya Pradesh to review the compliance with the resettlement and rehabilitation works and other measures intended as environmental safeguards. This committee undertook repeated visits to the site and interacted with the officials in that area to determine the progress of work on the environmental safeguards.

• October 2001 - February 2002: All work on the construction came to a standstill due to the withdrawal of a foreign collaborator. The Monitoring Committee inspected the site on 20th & 21st February, 2002 and suggested that the project authority should prepare a comprehensive R&R Action Plan with an implementation schedule and submit it before the financial closure is achieved and construction work is to be started.

• November, 2005: The project proponents were unable to raise the funds and work could not be resumed until November, 2005. Consequent to the financial restructuring of the company, Power Finance Corporation has taken over as the lead lending institution and control of the company. Project now is being implemented by the Management appointed by the lenders and construction re-commenced from 1st November, 2005.

• June 2006: The project authority started the construction work without submitting the comprehensive R&R Action Plan with time schedule. The Ministry vide letter dated 9th June, 2006 directed the Government of Madhya Pradesh to get the ongoing work at the Maheshwar Hydro Electric Project site suspended with immediate effect till a comprehensive R&R Plan is submitted. The project authority filed a petition in the High Court of Madhya Pradesh and got a stay order from the Hon’ble High Court on 19.6.2006.

• October 2009: On 29th October, 2009, MoS(I/C) E&F wrote to Chief Minister, Madhya Pradesh expressing his concerns over the non compliance with the terms of clearance, particularly those relating to the resettlement and rehabilitation of the concerned villages.

• November 2009: The CM, Madhya Pradesh replied to the above letter on 24th November, 2009 wherein he responded to the queries raised and assured the Minister (E&F) that no submergence would take place nor would any gates be lowered without the prior consent of the MoEF.

• December 2009: On 1st December, 2009, the Minister E&F wrote back

to the CM, Madhya Pradesh informing him that the Monitoring Committee was planning a site visit on or around 21st to 24th December, 2009. He further stated that he would get back to him once the report of the same had been received.

• December 2009: Between 22nd to 24th December the Monitoring Committee undertook a site visit of the area to review the implementation of the environmental safeguards including resettlement and rehabilitation.

• February 2010: Despite close monitoring and repeated site visits and also interaction with the State Government authorities implementing the project, it was found that work had not progressed in a commensurate manner with the construction of the project which had reached an advanced stage. In light of numerous representations received from relevant stakeholders and members of civil society the Monitoring Committee conducted another site visit on 6th and 7th February, 2010.

• February 2010: Following the above visits, the Monitoring Committee submitted their report. Thereafter in light of the findings contained therein the MoEF issued a show cause notice on 17th February, 2010 to SMHPCL to respond to these observations.

• March 2010: The show cause notice was replied to on 9th March, 2010. The reply was found to be vague and extremely unsatisfactory. No concrete plan or time schedule for the discharge of their obligations was provided.

• April 2010: On 23rd April, 2010, the MoEF issued a stop work order to the SMHPCL on the following grounds.

o Negligible R&R work had been done. o No agricultural land was identified for Resettlement and

Rehabilitation purpose. Out of 22 villages, Resettlement and Rehabilitation had only been completed for one village (Jalud).

o Two wildlife sanctuaries had not been created as agreed. o Backwater level calculation report of Central Water Commission

which was supposed to be given by December of 2009 was not been submitted till 2010.

28th April, 2010 the Managing Director of SMHPCL wrote back confirming that in response to the stop work order all work had since been stopped.

o As per conditions of environmental clearance dated 1.5.2001

rehabilitation & resettlement (R&R) work of project affected persons should be completed six months prior to the commencement of submergence. At the pace the R & R work is moving it is unlikely to be completed by November 2010.As such any question of loss of 7.2 lakh units of power per day does not arise. It may also be noted that the stop work order was issued as the environmental conditions including R & R were nowhere pari-passu with the pace of construction work on the project.