KSEB opens door for privatization, to hand over projects worth Rs 2,400 to private sector
THIRUVANANTHAPURAM: For the first time in Kerala, the Electricity Board has opened the door for privatization and handed over projects worth Rs 2,400 crore related to non-conventional power generation to the private sector. An investment meeting will be held on January 5 at the Muscat Hotel in Thiruvananthapuram to find entrepreneurs. Chief Minister Pinarayi Vijayan will inaugurate the function.
Privatization is in a build-on-and-operate (BOO) mode of transfer that is self-sustaining for 25 years after completion of construction. Vizhinjam Port and Thiruvananthapuram Airport are in this model.
Projects
Private entrepreneurs are being offered floating solar plants at 10 dams, windmills to generate wind power in Thiruvananthapuram, Idukki and Palakkad districts, and a large battery energy storage plant at Kalamassery to streamline power supply. The Kalamassery project is worth Rs 1,000 crore. The centralized control system of the power supply network in the state is at Kalamassery. There comes the project of storing power at a giant storage plant, improving the quality and supplying it to the supply chain.
Change in opposition mindset
The state had opposed the Central Government's amendment to privatize the construction and distribution sector in the power sector. The unions are also against it. Even when the State Electricity Regulatory Commission amended the norms to allow private entrepreneurs to supply electricity, the Electricity Board, unions and the government jointly opposed.
The Left Front was also against private investment in the power sector. But KSEB, the best public sector undertaking, has been at a loss for 15 years. The policy change is due to delays in completion of power projects and increased debt liability.
There is no other way
The central policy is that 10 per cent of the total electricity will be non-conventional energy. To meet this, the state needs to increase solar and wind power generation, or buy power from other states or private solar plants at exorbitant prices. Instead, the state is trying to generate such power in the private sector.
Concern
Dams should be left to private entrepreneurs for 25 years. Experts say this is a threat to the state.
Privatization
- 700 crore for floating solar plants
- Battery energy storage 1000 crore
- Wind energy 700 crore
- Total 2,400 crore
Financial Status of KSEB
- Loans at Rs 16,445 crore
- Liability Rs 47,559 crore
- The loss is Rs 13,800 crore
- Assets at Rs 36,289 crore