Problems pile up for KSEB project

Kozhikode: The tardy implementation of Centre-sponsored scheme for rural electrification is likely to burden the Kerala State Electricity Board (KSEB).
The KSEB officials have expressed fears that if the work is not completed on time, the Centre is likely to convert the grant into loan.
Ninety per cent of the Rs 115-crore Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) project is given by the Centre and the rest is a loan from Rural Electrification Corporation of the state government.
The scheme was supposed to benefit Kasaragod, Kannur, Wayanad, Kozhikode, Malappuram and Palakkad.
Contracts for works in Kozhikode and Wayanad were given in November 2010, Kannur in September 2010, Kasaragod in August 2010, Malappuram in March 2011 and Palakkad in January 2011.
State government has received around 30% of the project outlay. Even though the contracts expired, no steps were taken to renew the contract. Now funds are being released to agencies on the basis of an expired contract and this can cause problems during audit.
The agencies that received contract have been finding it difficult to execute this project due to difficulty in getting skilled workers. After reviewing the project, Union minister of state for power K C Venugopal has extended the timeframe of the project to May 31.
The KSEB officials have expressed fears that if the rural electrification project in the six districts is not completed on time, the Centre is likely to convert the grant into loan.