THIRUVANANTHAPURAM: The government has started immediate plans to restore the old cancelled long-term contracts after turning away from the proposal made by two companies in the latest tender. As per the instruction from the chief minister, a high-level task force has scheduled a meeting on Tuesday under the leadership of the Chief Secretary.

Adani Power and Dainik Bhaskar Power Limited, who participated in the tender, were rock-solid in their stand to provide electricity at the rate of Rs 6.88 per unit for five years. This forced the government to make a detour back to the earlier contract that provided electricity at Rs 4.11 per unit.

Earlier, citing technical reasons, the Electricity Regulatory Commission cancelled a 465 MW contract deal between private companies and the Kerala government. Meanwhile, the government if in need is allowed to use section 108 of the Electricity Act to exercise special powers. The high-level task force will discuss ways to beseech the commission to withdraw the earlier order of cancelling the contract.

After that, the Chief Secretary will hold an informal meeting with the Commission. The final approval of the decision will be taken by the chief minister himself.

Considering the gruelling economy and the shortages experienced in the power sector, KSEB invited three tenders that saw just two companies participating in it. When the 500 MW bid opened yesterday, Adani Power offered 303 MW at Rs 6.90 and Chhattisgarh-based Dainik Bhaskar Power Ltd offered 100 MW at Rs 6.97. Through arduous negotiations, the two companies reached a consensus to lessen the rate to Rs 6.88.

The tender for the purchase of 200 MW per day till 2024 May will be opened today. The tender for 500 MW will also be opened on the 7th of September under a swap deal that proposes to return back the electricity during the next rainy season.

According to the long-term agreement moulded by former minister Aryadan Muhammad, three companies were providing Kerala with 465 MW of electricity until this year. According to this contract, 115 MW of electricity came at Rs 4 and 11 paise and 350 MW for Rs 4 and 29 paise. The contracts were cancelled by the Regulatory Commission in May citing procedural lapses.

On another note, despite big rains in the last four days, the water level in Idukki Dam remained unchanged. Meanwhile, Idukki also recorded less rainfall compared to other areas. The water level in the Idukki Dam still remains at 29%.