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dam-l LS: Conflicting Claims on Maheshwar and German utilities
Financial Times, April 27, 1999
Investors Quit Indian Project
Nancy Dunne, Washington
Two German utilities have withdrawn from India's controversial Maheshwar
Dam, leaving the future of India's first privately financed hydroelectric
project in question. The proposed dam, like many in the Narmada valley in
western India, has generated fierce opposition. Sixty-one villages and
20,000 people would be displaced.
Vereinigte Elektrizitatswerke Westfalen confirmed yesterday that it was no
longer involved with the project, while Bayernwerk of Bavaria said its
contracts with Shree Maheshwar Hydropower, which is to build and operate
the project, had run out and would only be renewed if authorities were to
provide good land for resettlement. the two utilities were to acquire 49
per cent of equity in the dam.
-------------------------------------------------------------
>Statesman News Service 25.4.99
>
>'German firms still with MP dam project'
>
> BHOPAL, April 24. - The Shree Maheshwar Hydel Power Corporation Limited
>has denied reports that the two German companies, VEW Energie and
>Bayernwerk, have
>withdrawn from the 400 MW Maheshwar hydel dam project.
>
> It would be the first private hydel dam in the country, built on the
>Narmada river in Khargone district of Madhya Pradesh.
>
> In a statement released yesterday, the SMHPCL said it "reconfirms that
>the German partners, Bayernwerk and VEW Energie, continue to retain their
>interest in the
>project".
>
> The SMHPCL also released a letter dated 21 April from a Bayernwerk
>official, to substantiate its statement. The letter said: "This is to
>confirm ... that we are still
>interested in the Maheshwar project since we think it is of great value
>to the state of Madhya Pradesh as
>well as to the Western Grid. We believe the project will considerably help
>alleviate the power shortage
>in Madhya Pradesh, especially the urgent need for peaking power. Our
>engagement in the project,
>however, always was and still is subject to German and Indian laws and
>regulations as well as to a
>number of conditions precedent."
>
> Earlier, a German environment and human-rights organisation, Urgewald,
>which had undertaken an on-the-spot investigation of the project a few
>months ago, had claimed
>that the two German companies opted out after Urgewald "helped convince
>German companies to
>withdraw".
>
> The two companies are slated to acquire 49 per cent of the equity in
>the Rs 1,569 crore project being promoted by the S Kumars group.
>
> The SMHPCL refuted Urgewald's claims and alleged the organisation's
>visit was "orchestrated by the Narmada Bachao Andolan".
>
> "The NGO (Urgewald) representative was taken on a conducted tour by the
>Narmada Bachao Andolan and was only allowed to meet people that the NBA
>approved of",
>the SMHPCL statement said.
>
> The SMHPCL pointed out the Maheshwar project had received clearances,
>including environmental clearance, from the "highest authorities in the
>country". "The company
>hasn't violated any environmental guidelines and the rehabilitation and
>resettlement work
>of the project is proceeding as per schedule ," the statement said.
>
> The SMHPCL criticised the NBA, saying instead of "focussing on issues
>of R&R (resettlement and rehabilitation) and furthering the cause of the
>affected villagers in
>conjunction with the project authorities, the NBA is stalling
>developmental projects in the region".