Small fry to build big canals under Vibrant Gujarat

  • 16/09/2008

  • Times Of India (Ahmedabad)

GANDHINAGAR: Vibrant Gujarat wants to dot some of state's major canal networks, including the Narmada main canal, with mini-micro-hydro power projects. And imagine whom does it propose to choose for this - a company called Krishna Kanhaiya Hydro Power Pvt Ltd, owned by a UK-based NRI Riyen Ramani. Already, it has earned a contract worth Rs 18 crore to start building mini-microhydro power projects on the canal coming out of Karjan dam, lying dormant for nearly three decades. One of its directors has been an ex-Congress MLA from Mandvi, who even today takes rounds of Sachivalaya to pursue the case for Krishna Kanhaiya, admits that when the company was founded three or four years ago its worth was a mere Rs 1 lakh. Yet, it signed up two memoranda of understanding (MoUs) with the state government at the Vibrant Gujarat summit in January 2005 - for micro hydropower plants on Narmada canal for Rs 146.1 crore and on Karjan canal for Rs 22 crore. After the contract for Karjan canal was cleared early this year, the Gujarat Infrastructure Development Board (GIDB) began the process of clearing the file of the company for having micro-hydro powers on Narmada main canal in central Gujarat, Saurashtra and Kutch. The file was sent to the GIDB by the Sardar Sarovar Narmada Nigam Ltd (SSNNL) after irrigation minister Nitin Patel personally intervened in the matter . Ex-MLA , Chhabilbhai Patel, who is close to Union textile minister Shankarsinh Vaghela, claims, "Today, the company's worth is Rs 10 crore." Significantly, the company has been chosen not after floating open competitive bids. Sachivalaya sources said, the company was allowed to go ahead with the project to have mini-micro-hydro power plants after it put forward the proposal for what is called 'Swiss route' or the 'challenge route' . Under this, the GIDB, chaired by Chief Minister Narendra Modi, allows a 'goahead ' to the companies that come up with 'unique projects' . They need not go through the tedious bidding process. A senior official said, 'When Krishna Kanhaiya came up with its proposal exercising the Gujarat Infrastructure Development Act's Swiss route, it did not submit financial or technical parameters. Nor did it submit details of equity or bank balance. Even today, the state government has no such details. Yet, there is a possibility that it may be cleared. If it happens, it would be a Vibrant Gujarat miracle, of allowing a company founded on Rs 1 lakh equity to do Rs 200 crore business."