The Kaiga Nuclear Power Plant (NPP) in Karnataka, managed by Nuclear Power Corporation of India Limited (NPCL), is essential to India’s energy future. Given the critical role of nuclear power, ensuring top-notch safety and construction quality is non-negotiable. However, concerns arise as Megha Engineering & Infrastructures Ltd (MEIL), currently the lowest bidder (L1) for the Kaiga project, has a troubling history of construction failures and safety lapses.
Nuclear power plants require impeccable construction and safety standards due to the high stakes involved. Any lapse in construction quality can lead to catastrophic consequences, similar to historical incidents like the Chernobyl disaster. Thats why MEIL’s history of substandard construction practices raises significant concerns:
MEIL’s Troubling Track Record
1. Sunkishala Retaining Wall Collapse: On August 1, 2024, the collapse of a retaining wall at the Sunkishala project in Nagarjuna Sagar, Nalgonda district, highlighted serious issues with MEIL’s construction practices. The incident, due to poor construction and negligence, could have had tragic consequences if it had occurred during working hours. Reports suggest the use of substandard materials and methods aimed at reducing costs.
2. NH 66 Bridge Failure: In May 2024, a concrete beam on a bridge under construction on National Highway 66 in Kasaragod slipped off its pier. This incident followed a similar collapse of a vehicle underpass on the same highway in October 2022. Both incidents involved projects managed by MEIL. The National Highways Authority of India (NHAI) issued a show-cause notice to MEIL’s managing director, citing quality defects and non-compliance with standards, resulting in fines totaling Rs 35 lakh.1
3. Kaleshwaram Pumping Station Flooding: During the monsoon season of July 2022, MEIL’s Kaleshwaram Pumping Station experienced flooding. Despite water levels being below the Central Water Commission’s approved limits, the pumping stations at Annaram and Medigadda were submerged, revealing serious flaws in design and construction.
4. Mission Bhagiratha Leaning Tank: In July 2020, an overhead storage tank built by MEIL for the Mission Bhagiratha project in Nagarkurnool tilted by 30 degrees and had to be demolished. This tank was part of a project aimed at providing drinking water, but poor construction led to its instability and failure.
Ongoing Project Failures
MEIL’s poor track record extends beyond these incidents. A prominent example is the Mongolia Crude Oil Refinery Project, funded by the Indian Government’s Exim Bank. Originally valued at approximately ₹7,000 crore and scheduled for completion in 35 months by 2024, the project is now only 14% complete. MEIL’s use of fake Euro Exim Bank Guarantee has been a major issue and they have used same in this project too. The project’s severe delays and underperformance are indicative of broader issues with MEIL’s project management capabilities. This is not an isolated case—many of MEIL’s projects face similar delays and incomplete statuses. Here is the List .
Corruption Allegations
Adding to these concerns, in April 2024, the Central Bureau of Investigation (CBI) registered a case involving MEIL, NMDC Limited, NMDC Iron and Steel Plant (NISP) Limited, and MECON Limited. The case relates to a work contract worth over ₹314.57 crore, further tarnishing MEIL’s reputation.
Implications for the Kaiga Project
With MEIL being the lowest bidder (L1) for the Kaiga NPP project, the potential risks associated with its involvement are significant. MEIL’s problematic history suggests a potential for compromised construction quality, which could endanger the safety of the plant and pose risks similar to those of historical nuclear disasters.