Kerala may drop plan to buy costly power from NTPC
Kerala may drop plan to buy costly power from NTPC
Kseb


Thiruvananthapuram, 15 September (H.S.): The Kerala government is likely to abandon its proposal to purchase emergency power from the National Thermal Power Corporation (NTPC) at a steep rate as the state battles a severe electricity shortage.

The government is understood to have accepted in principle an assessment by the Kerala State Electricity Board (KSEB) that buying electricity at ₹30 per unit would impose an unsustainable financial burden on the utility. The additional expenditure could ultimately be passed on to consumers through higher tariffs.

KSEB informed the government that purchasing power at the proposed rate would result in an additional daily expenditure of more than ₹12 crore.

KSEB Chairman and Managing Director M.G. Rajamanickam said the government had been directly apprised of the serious financial consequences of procuring electricity at such a high price.

The government had earlier granted in-principle approval to purchase emergency power from NTPC to overcome the shortage. However, a detailed examination of the financial implications revealed that the move could severely affect the electricity board’s already strained finances.

The government has consequently decided to assess all available options before taking a final decision. Both the government and KSEB are trying to avoid emergency power purchases at exorbitant rates.

Meanwhile, KSEB has intensified efforts to procure electricity at comparatively lower rates from northern states. Steps are also being taken to secure additional power for Kerala from central generating stations and nuclear power plants.

Rajamanickam will travel to New Delhi on Wednesday to hold discussions with the Chairman and Managing Director of the Nuclear Power Corporation of India Limited. The talks are expected to focus on obtaining additional electricity for Kerala from nuclear power stations.

Officials said the state could receive some relief from the prevailing power shortage in Kerala by Wednesday if additional electricity is made available under the central allocation.

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Hindusthan Samachar / Arun Lakshman


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