Coimbatore: The vexed Cauvery water issue has "deprived" Tamil Nadu of a Rs 500 crore hydel project in Nilgiris district as the Centre had refused to give clearance, claiming riparian states may object to using water from the river.
The state government had prepared the project to generate 600 MW from pumping water from Kunda river, a sub tributary of the Cauvery, and requested for Central clearance as any project of over Rs 500 crore required the Centre`s nod, but the Union government refused to do so, state electricity minister Natham R Vishwanathan said here on Saturday.
He was speaking at the local chapter of Indian Chamber of Commerce and Industry on power projects in Tamil Nadu and Solar power Policy 2012.
The Centre contended that the project required clearance from Karnataka as water used to generate power originated from Cauvery and other riparian states would also object to it, Vishwanathan said.
As Karnataka may not provide the necessary no objection certificate, the Tamil Nadu government cut down the project cost to Rs 478 crore and made the plant operational, he said, adding that the plant is now generating 125 MW of power.