In a striking example of failed river and infrastructure management long-stalled Maheshwar dam on the Narmada River is now set to be permanently abandoned. After over three decades of controversy, delays, and mismanagement, the National Company Law Tribunal (NCLT) has ordered the liquidation of Shree Maheshwar Hydel Power Corporation Ltd (SMHPCL), sealing the fate of the dam project that has already consumed ₹5,000 crore in public and institutional funds.
The dam located in Madhya Pradesh Mandleshwar region, was once hailed as a flagship public-private partnership meant to modernize India’s power sector. But instead of delivering hydropower it became mired in financial collapse, legal battles, incomplete rehabilitation, and stiff grassroots opposition led by the Narmada Bachao Andolan (NBA).
The Power Finance Corporation and other lenders had backed the project heavily, but with no tangible progress in years, and no credible buyer emerging during an extended insolvency resolution process, the NCLT ruled on July 11 that liquidation was the only path forward.
Critics say the Maheshwar dam now stands as a stark symbol of how poor planning, disregard for environmental safeguards, and unfulfilled rehabilitation commitments can derail infrastructure dreams. The government of Madhya Pradesh had earlier terminated its power purchase agreement with SMHPCL in 2020, further eroding the viability of the already stalled project. With no PPA and no buyers interested in acquiring a bare concrete skeleton, the dam remains a stranded asset disrupting river flow and displacing communities without delivering a single watt of power.
Environmentalists argue that Maheshwar highlights the broader risks of unchecked privatisation in the hydropower sector. While private players were expected to bring capital and efficiency, in reality, costs spiraled, project timelines failed, and legal violations mounted particularly around resettlement of displaced villagers. Activists like Alok Agarwal and Chittaroopa Palit led fierce resistance, warning that the power generated from Maheshwar would have cost ₹9 per unit far higher than nearby dams or renewable alternatives.
With rehabilitation still incomplete and nearly ₹2,000 crore in loans gone to waste, the NBA now demands the dam be dismantled altogether and the Narmada restored. As debates continue over India energy future the Maheshwar episode serves as a potent cautionary tale of the cost both human and financial of development gone awry.