Mukul demands independent inquiry into alleged scam into implementation of Ganol power project

Syllad | The Rising MeghalayaJune 7, 2025

Leader of Opposition and former chief minister Mukul Sangma on Friday demanded for an independent inquiry into the alleged “scam” in the implementation of the Ganol Small Hydro Project of 22.5 megawatt.

This came a day after the state Cabinet had approved the proposal for sanctioning an additional of Rs 30 crore to clear all pending dues relating to the Ganol power project. According to the chief minister Conrad K Sangma, the overall project cost will be closed at Rs 590.88 crore.

“There must be an independent inquiry (into the implementation of the Ganol power project). I have every reason to at least doubt the integrity as far as the escalation and the expenditure that has been incurred,” Sangma told reporters.

“I will require the government to give us complete clarity on this necessity of cost overrun (and the huge escalation),” he added.

According to him, the government has revised the project cost multiple times leading to an unprecedented escalation from Rs 356.43 to Rs 590.88 crore.

Sangma said the project was conceptualized in 2006-07 and sanctioned accorded in 2007 but in 2008 post elections, a new government was formed under the leadership of late Dr Donkupar Roy and the incumbent chief minister Conrad K Sangma was minister incharge power and finance and they have decided not to go ahead with the project.

However, when Congress came back to power in 2009, the project was revised and the project cost was approved at Rs 356.43 crore and duration for completion of project was only 28 months, which means less than 3 years. The project was scheduled to be commissioned in December 2018.

“If you go by the series of information shared by the Meghalaya Electricity Generation Corporation Limited, it was done in a transparent manner and there was no more scope for any further delay nor for any escalation. With that declaration that the project will be commissioned by December 2018, it can be easily interpreted for the understanding of every one of us that means there was no more scope for time overrun or cost overrun,” he said.

“But what has happened is that subsequently, the corporation came up with a petition for revision of the cost. Look at the audacity of this government from Rs 356.43 crore, they have approved the revised in 2019 at Rs 507.7 crore and in 2023 again revision figure shows at Rs 535.34 crore and the figure which was reflected in the (yesterday’s) media briefing of the chief minister stands at Rs 590.88 crore,” Sangma alleged.

He further questioned, “How is it possible for a power project of this size to have the space for repetition and revision of projected cost?

“The ramification of this cost overrun ultimately has two negative effects – one is drainage of money from scarce exchequer. This is a project which was supported by a grant from the government, meaning public exchequer. Now instead of less than Rs 400 crore you end up spending close to RS 600 crore,” the former CM said while adding “Due to this repeated revision, which is avoidable, the cost of generation per megawatt has come to Rs 26.26 crore. Nowhere in this country has probably spent more than Rs 20 crore per megawatt even in the most difficult areas.”

Stating that Meghalaya has shown the way, Sangma said, “These are trial balloons to see whether people react or not. It is very important not to remain silent in this kind of modus operandi that the government of the day has so well scripted in every sector. Every project is being abused and misused as a milking cow at the cost of the interest of the state and people.”