Delays in executing projects have made several power infrastructure companies and investors in Karnataka suffer and have started affecting the operational efficiency of the southern grid, say industry players.
For instance, construction and completion of several transmission lines in northern and coastal Karnataka, including Udupi Kasargod Transmission Line (UKTL) and Goa to Tanmar Line, are hugely delayed owing to stoppages mainly caused by litigations for acquiring lands for erecting power lines, they say.
It is also feared that the ₹700 crore UKTL line, originally envisaged to provide a solution to spur the State’s earnings from power surplus and address electricity shortage problems in north Kerala, may run into cost and time overruns, as per industry players.
‘’While officials cite court cases, power infrastructure companies suffer because of these inordinate delays,’’ said an official at a power infrastructure company under anonymity.
The delays have prompted the government to recently extend the deadline for these projects to October 2024, from December, 2023.
Glimmer of hope
Citing a recent court order, an industry source said that it gave a glimmer of hope.
A recent Mumbai High Court order stated that the State governments cannot delay projects owing to small protests over land acquisition issues. The court also thought that the magistrate should decide on matters related to land acquisition and not higher courts, to avoid delays and also to expedite projects.
“It has set a precedence and might give a glimmer of hope to many power projects in the State that are currently in limbo,’‘ anticipated an industry source.
Speaking to The Hindu, senior counsel in Karnataka High Court B.V. Krishnappa said: “Whenever a higher court gives orders in the nature regarding disputes which are common and general across the country, it paved the way for resolving issues regardless of jurisdiction.’‘
According to the Energy Department, the State has been spending ₹1,268.55 crore every year for purchasing power and this year, till December 13, about 1,905.8 million units were purchased because of shortage of power.
In addition, keeping the drought situation in mind, the government was also reducing the emphasis on thermal power and increasing solar power generation by upto 2,000 MW during peak hours.
‘Govt very proactive’
However, Gaurav Gupta, Additional Chief Secretary, Energy Department, said that Karnataka has been implementing a large number of power projects successfully across the State and the government was very proactive.
However, projects under the tariff-based competitive bidding for inter-State transmission come with several ground-level issues including high habitation zones, forest clearances, compensation, litigation and many other issues, he told The Hindu.
“We have some projects involving private players. Such projects requires strong ground level consultation with Forest Department and local authorities in addition to obtaining required clearances from the Ministry of Power. We are actively following up on these projects,” Mr. Gupta further said.
