The 30-year-old Build Own Operate Transfer (BOOT) contract between Carborundum Universal Ltd (CUMI) and KSEB on the plant is scheduled to end on December 30. It is said that a decision on its future operations is likely to set a precedent for similar projects. However, the government is treading cautiously as it involves a cheap source of energy on the one hand and industrial promotion on the other.
The 14 MW plant that generates 36 million units of power annually became operational in 1994. The agreement involved setting up the Maniyar SHEP on a captive power plant (CPP) basis for a period of 30 years.
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