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MSEB okays turnkey contract value hike 

Sanjay Jog  
Mumbai, Nov 13: The board of loss-making Maharashtra State Electricity Board (MSEB) has approved the hike in the value of turnkey contract from Rs 35.40 crore to Rs 41.88 crore (18.30 per cent) awarded to KEC International for the completion of 400 kv Dabhol-Nagothane transmission line. However, the board has not cleared an amount of Rs 5.5 crore towards "tree compensation" to KEC International. So far it has made a payment of Rs 92.70 lakh for the same purpose.

MSEB sources told The Financial Express that the rise in contract value was mainly due to substantial increase in the total number of locations where "costlier" foundations suitable for black cotton soil and dry fissured rock were necessitated as per site conditions. Simultaneously, there was increase in tower protection quantity due to hilly site conditions.

Number of foundations in black cotton soil and dry fissured rock have increased to 16 and 333.75 as against the estimated quantities of eight and 119 respectively. As per normal practice at the time of estimation, tower protection quantities for benching and revetment are considered as a lumpsum quantity required for about 10 per cent of total locations. However, in this case, there has been abnormal increase of tower protection quantities because the line is passing through hilly areas. The line which was crossing across the vicinity of Gavthan area, due to severity of right of way problem, the line was required to be diverted at many places to the hilly portion which in turn caused increase in volume of revetment and benching work.

As far as tree compensation is concerned, MSEB has made it clear that though it has so far paid Rs 92.70 lakh from its own resources, the tree compensation is not considered in the contract agreement. MSEB's finance department has said that, "at the outset a compensation of Rs 5.5 crore for tree cutting appears to be unreasonably high since only big trees that infringe the towers need to be cut and small shrubs and mangrove that do not infringe the towers can be left untouched."

However, KEC International in a communication to the MSEB has said that right of way is defined by considering average height of trees and clearance required and considering eventuality of falling of trees by ISI as 52 meters. It is therefore very clear that all trees in the right of way are to be cut in irrespective of their heights. "As such cutting of the mango trees only at location of foundation or cutting of trees infringing only conductor does not serve the purpose."

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