KSEB seeks central assistance to ensure 1000 MW during summer season

THIRUVANANTHAPURAM: The state government is hoping for leniency from the central government as the companies are unwilling to supply power even after the Regulatory Commission restored the long-term contracts. This is after central government firm NTPC took over the Jhabua company which was involved in the contract.

Jhabua Power Limited is now saying that they cannot supply 215 MW of electricity. According to the contract, Jhabua has to pay 115 MW at Rs 4.11 and 100 MW at Rs 4.29.

Another company, Jindal Power Limited informed that it cannot supply 150 MW of electricity as per the old contract since they have signed a new contract. Jindal Thermal Power Limited also informed that 100 MW can be provided under the contract if the dues of Rs.90 crore are paid.

According to the four agreements signed by these three companies, 465 MW of electricity is to be obtained. Legal action can be taken for breach of contract but it will get eventually delayed. With summer fast approaching, KSEB is fighting all means to reach a solution. The board is likely to face a power deficit of 1000 to 1500 MW during summer.

KSEB has approached the Regulatory Commission to seek permission to purchase power at a high price. The companies participating in the five-year short-term tender called by KSEB in November had offered 403 MW of electricity, in the wake of the initial cancellation of long-term contracts. Adani Power will supply 303 MW at Rs 6.90 and DB Power will supply 100 MW at Rs 6.97. It was reduced to Rs 6.88 on reverse bidding.

If the demand is accepted by the Regulatory Commission, KSEB will ensure 1000 MW of electricity during summer under the old contract and the new short-term contract. But the people will have to bear the financial burden.