Revenue, industries departments tussle over land in Kochi

HIRUVANANTHAPURAM: The revenue department and the industries department have locked horns over the land leased out to the the BSES Kerala Power Ltd (BKPL), a power project at Eloor near Kochi and whose majority share is owned by Reliance Energy Limited.

The revenue department, which is the custodian of government land in the state, has taken exception to the decision of the

industries department leasing out the land for the project without its knowledge.

The industries department had leased out the land in 1998 for the project, the first fast track power project in the state and in which the Kerala State Industrial Development Corporation has a minor stake.

"The industries department had leased out 20 acres of land from the 109 acres acquired forTravancore Cochin Chemicals Limited, a government-owned company. The land was given in two quick successions - 15 acres initially and 5 acres subsequently," sources in industries department said.

The transaction came to the notice of the revenue department only when it came up for the renewal of lease period.

"Any extent of land earmarked for a specific purpose cannot be used for another purpose without following due procedures specified by law.

According to 44A of the Land Acquisition Act, the acquired land can be taken back if it is not used for the purpose for which it was acquired. It can be used for any government use or can be publicly auctioned," sources said.

The procedure that should have been followed while leasing out this land was that the TCCL should have devested the portion of land with the revenue department, which would then have invoked necessary lease rules before assigning the land for the power project, sources said.

The revenue department is of the view that any decision to renew the lease now can be taken only with the consent of the cabinet, as the matters relating to leasing out land with market value above Rs 20 lakh can be decided only by the cabinet.

The BKPL runs the 165 MW naphtha fired combined cycle power plant and has entered into a Power Purchase Agreement (PPA) with Kerala State Electricity Board (KSEB) for the operation.

The cost of the power generated is approximately Rs 11.31 per unit and it generates 3.77 million units per day. The KSEB pays Rs 7 crore per month as fixed cost to the BKPL, though it hardly depends on the BKPL for power.