Supreme Court lawyer and anti-corruption activist Prashant Bhushan has said the Maheshwar dam project, the country's first privately-financed hydropower project, mired in financial irregularities, is unviable.

Mr. Bhushan was addressing in Maheshwar on Sunday a rally, taken out by oustees of the project against the recent decision of the Ministry of Environment and Forests (MoEF) allowing raising the water level in the reservoir up to 154 metres.

In a illegitimate reversal of the decision dated 6th May 2011 of Union Ministry of Environment and Forests (MOEF), prohibiting any closure of the gates of the Maheshwar dam or submergence until completion of rehabilitation and resettlement, on 1st of May 2012, the MOEF has issued permission for the closure of the gates of the Maheshwar dam and for partial filling of the reservoir up to 154 meters.

Despite the facts that no synchronization and electricity generation is possible at EL 154 meters of the Maheshwar dam, that there is no survey of the impact of submergence at EL 154 meters, and that less than 15% of the villagers of the 61 villages affected by the Maheshwar dam have been rehabilitated and resettled, the State Government and the S.Kumar’s company Shree Maheshwar Hydel Power Corporation Limited (SMHPCL) which is building the Maheshwar dam on the river Narmada has asked the Ministry of Environment and Forests (MOEF) of the Central government for permission to fill the Maheshw

The Narmada Bachao Andolan (NBA) has opposed the Madhya Pradesh government's move to fill up the Maheshwar dam up to a height of 154 metres and has warned of a “ jal satyagraha” if the government goes ahead with the decision.

The State government, along with the Maheshwar project promoter Shree Maheshwar Hydel Power Corporation Ltd (SMHPCL), has asked permission from the Union Ministry of Environment and Forests (MoEF) to fill up the dam up to 154 metres.

The Shri Maheshwar Hydel Power Corporation Limited (SMHPCL) Project has strongly refuted the false and misleading claims made by the Narmada Bachao Andolan (NBA) that 90 houses in six villages got flooded as the Maheshwar Project had closed five gates. This is totally untrue as the project did not close gates at all in July 2011 and the reservoir was not filled.

The battle for Maheshwar dam and Indore water crisis appears to have reached a decisive phase with both the senior Government officials and distinguished citizens of Indore batting for filling of Maheshwar dam up to 160 meters so as to enable Indore to derive optimum benefits of the Narmada Phase III.

The Narmada Bachao Andolan claimed that Mukul Kasliwal, S Kumars scion and chairman of SMHPCL, failed to explain the fact that cost of power from the privatised Maheshwar hydel project being constructed on the river Narmada is Rs9.97 per unit. This was in the minutes of the meetings of Union Ministry of Power dated October 19, 2011, May 26, 2011 and June 15, 2011, and Kasliwal failed to deny the grave public issues raised by the NBA.

Vesting legal power in the Commissioner, Indore division, the Madhya Pradesh Government has authorised him to lawfully redress applications submitted to him by persons displaced by the Maheshwar hydel project who are dissatisfied with the rehabilitation process. These powers have been vested in the Commissioner, Indore division, through a notification published by the Government in the January 31, 2012 edition of Madhya Pradesh Gazette (Extraordinary).

The senior citizens’ forum, a forum of distinguished intellectuals of the city, apparently concerned over delay and denial of complete benefits of Narmada Phase III to the people of Indore and adjoining regions, has called upon the State Government to ensure early operationalisation of the now complete Maheshwar dam. They opined that the opening of dam for the people would provide adequate potable water to the residents of Indore from Narmada Phase III, for which the Indore Municipal Corporation is spending a staggering sum of about Rs 700 crore.

Narmada Bachao Andolan ( NBA) has demanded CBI inquiry into the purchase of power from Maheshwar Hydro- electric project, which is now Rs 10 per unit and it has become unviable. If Madhya Pradesh does not withdraw, NBA will knock the doors of a court. NBAs Alok Agrawal said, " As per Tariff Order of the MPERC for the year 2011- 2012, the cost of power in MP is Rs. 2.44 per unit. Cost of power from the two upcoming private power projects in Madhya Pradesh - Essar Power and Torrent- is Rs. 2.45 per unit and Rs. 3.31 per unit respectively.