Madhya Pradesh
,
Jalud
,
Khargone
Published :
Sep 2016
|
Updated :
MP Government Scraps Maheshwar Hydropower Project due to Cost Escalation, Pending Rehabilitation
Reported by
Gourav Jaiswal
Legal Review by
Anmol Gupta
Edited by
Anupa Kujur
Households affected
60000
People affected
1993
Year started
16178
Land area affected
Households affected
60000
People Affected
1993
Year started
16178
Land area affected
Key Insights
Sector
Power
Reason/Cause of conflict
Hydroelectric Project
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Ended
Sector
Power
Reason/Cause of conflict
Hydroelectric Project
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Ended
1
Summary

The Maheshwar Dam project was proposed in 1978 as part of the Narmada Valley Development project. The Madhya Pradesh State Electricity Board was assigned the responsibility of building the dam in 1989. In 1993, the project was awarded to S. Kumars making it the first such privately financed project.
The project was estimated to affect over 60,000 people belonging to 61 villages, out of which 21 villages would be completely submerged and another 40 villages would witness the submergence of agricultural land.
The people affected by the project were eligible for the Resettlement and Rehabilitation (R&R) measures by S. Kumars, entrusted to the MP State Electricity Board. The original schedule to settle the R&R of the first village to be submerged - Jalud - was by 1997-98. The R&R was to be awarded according to the 1985 resettlement policy of Madhya Pradesh for Narmada projects. One of the major provisions of the policy was that every land-owning family that would lose more than 25 per cent of its land would be entitled to land-to-land compensation, with a minimum of five acres and maximum of 20 acres to be provided, and the villages would be resettled as communities. The project was initially stuck due to protests against the impact of the project.
In 2010, the construction of the dam was 80 per cent complete, but the rehabilitation was still stuck at 3-5 per cent, according to the then Union Minister of Environment and Forests, Jairam Ramesh. By 2015, only 20 per cent of the displaced population was compensated.
In 2016, the government ordered an enquiry into the operations and mismanagement of the firm that delayed and derailed the project and lead to cost overruns. In 2019, the project was abandoned due to a financial crunch that impacted the R&R work.
In April 2020, the state government announced the scrapping of the Maheshwar Dam Project. A senior government official was quoted as saying in a news report, “The Power Purchase Agreement required the state government to pay project promoters huge amounts of public money every year for 35 years from the date of the commissioning of the project, whether or not the electricity was purchased by the government.”
As of March 2021, there was no clarity on the status of displaced people and whether land would be returned to them. However, in September 2022, the decision to scrap all contracts related to the project was finally approved by the State Chief Minister, following a cabinet meeting in Ujjain.

2
Fact Sheet

Demand/Contention of the Affected Community

Demand for rehabilitation

Demand for promised compensation

Demand to retain/protect access to common land/resources

Other Demand/Contention of the Affected Community

Region Classification

Rural

Type of Land

Common and Private

Non-Forest (Grazing Land)

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Details of sources (names of accused, names and numbers of any lawyers, names of any police officers contacted)

Status of Project

Original Project Deadline

Whether the Project has been Delayed

Significance of Land to Land Owners/Users

Whether the project was stalled due to land conflict

Source/Reference

Total investment involved (in Crores):

4400

Type of investment:

Revised Investment

Year of Estimation

1978

Page Number In Investment Document:

Has the Conflict Ended?

When did it end?

Why did the conflict end?

4
Additional Information

Government Departments Involved in the Conflict:

Ministry of Environment and Forests, Government of India, Government of Madhya Pradesh, Madhya Pradesh Electricity Board , Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC)

PSUs Involved in the Conflict:

Madhya Pradesh Electricity Board, Madhya Pradesh State Industrial Development Corporation Limited

Did LCW Approach Government Authorities for Comments?

Name, Designation and Comment of the Government Authorities Approached

Corporate Parties Involved in the Conflict:

Shree Maheshwar Hydro-Electric Power Corporation Limited, Bayernwerk from Germany, Siemens from Germany , PacGen Ogden Corporation from the US, Vereinigten Elektrizittswerke Westfalen AG (VEW) from Germany

Did LCW Approach Corporate Parties for Comments?

Communities/Local Organisations in the Conflict:

Kahar and Kevat communities

5
Information on the use of criminal law

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Legal Supporting Documents

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Author
Reported by
Gourav Jaiswal
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Fact sheet

Demand/Contention of the Affected Community

Demand for rehabilitation

Demand for promised compensation

Demand to retain/protect access to common land/resources

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Status of Project

Original Project Deadline

Whether the Project has been Delayed

Significance of Land to Land Owners/Users

Whether the project was stalled due to land conflict

Source/Reference

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