Why is it in the News?

The CBI conducted searches at the premises of former Jammu and Kashmir governor Satya Pal Malik and 29 other locations recently in connection with alleged corruption in the Rs 2,200-crore Kiru Hydropower project.

What are the Corruption Allegations Surrounding the Kiru Hydel Project?

• During his tenure as the governor of Jammu and Kashmir from August 23, 2018, to October 30, 2019, Satya Pal Malik claimed that he was offered a Rs 300-crore bribe to approve two files, one of which pertained to the project.
• In 2022, the J&K government requested a CBI investigation into alleged misconduct, previously highlighted by Satya Pal Malik, in the awarding of two government contracts.
• Concerns have been raised regarding the award of civil works, particularly to Patel Engineering Ltd, a prominent infrastructure and construction company established in 1949.
• The CBI has initiated action against the former CVPPPL chairman, MD, and Directors, as well as Patel Engineering.
• According to the FIR, an inquiry by the J&K Anti-Corruption Bureau and the Power Department had been conducted.
• The FIR alleges non-compliance with e-tendering guidelines in the awarding of civil works for the project.
• Additionally, accusations of substandard work and failure to employ local youth have been levelled against the hydel project.

What is the Kiru Hydel Power Project?

• The 624MW Kiru hydroelectric project is being developed as a run-of-river scheme in the Kishtwar district of Jammu and Kashmir, a union territory in India.
• Location of the Kiru project: The Kiru hydropower project is being built along the Chenab River near the villages of Patharnakki and Kiru, approximately 42 km from Kishtwar.
  • It will be located between the Kirthai II hydroelectric project to its upstream and the Kwar hydroelectric project to its downstream.
• The project is being developed by the Chenab Valley Power Projects (CVPPPL) joint venture (JV) between:
  • National Hydroelectric Power (NHPC, 49%)
  • Jammu & Kashmir State Power Development (JKSPDC, 49%) and
  • The Power Trading Corporation (PTC, 2%)
• The Ministry of Environment Forests and Climate Change (MoEF&CC) awarded environmental clearance for the hydroelectric project in 2016 while the foundation stone was laid in February 2019.
• The project is being constructed at an estimated cost of Rs 4,287 crore and is expected to start commercial operations in July 2025.
• The Cabinet Committee on Economic Affairs (CCEA) approved the investment in the project in March 2019.
• Apart from helping address the energy demand across northern India and the state’s rural areas, it could aid small-scale and cottage industries.

Advantages of the Kiru Hydroelectric Power Project:

• This project aims to alleviate the energy shortage in Northern India while also enhancing the transportation, education, healthcare, and road infrastructure in the area.
• By bringing electricity to rural communities, the project will lessen the reliance of residents on alternative energy sources.
• The heightened power availability will foster the growth of small-scale and cottage industries, generating employment opportunities and revenue for the local populace.

What is a Run-of-river Project?

• Run-of-river hydropower is a facility that channels flowing water from a river through a canal or penstock to spin a turbine.
• Typically a run-of-river project will have little or no storage facility.
• Run-of-river provides a continuous supply of electricity (base load), with some flexibility of operation for daily fluctuations in demand through water flow that is regulated by the facility.