THIRUVANANTHAPURAM: KSEB, which decided to buy power at the last moment, suffered a setback in the tender. Just two people turned up for a long-term contract. 12 people came for a short-term contract but the offer amount was too high. It is indicated that the swap agreement to be opened tomorrow will also be a disappointment.

The 465 MW deal was cancelled by the Regulatory Commission in May, but no alternative agreement was sought. When the rain subsided, the crisis worsened and they tried to buy power from outside at a high price to solve it. The Electricity Minister intervened when it became clear that the liability of this rate hike would fall on the public, but it was too late. The season of regular power contracts is over. The companies lost interest in the tender. The participants, on the other hand, bargained for a higher rate. If this is confirmed, KSEB will have a substantial financial liability and the public will have to bear the responsibility.

The long-term contract opened on Monday was bid above Rs 6.90. The contract was called for 500 MW for five years but only an offer of 403 MW was received. The amount was brought down to Rs 6.88.

12 companies for short-term contract

12 companies participated in the tender for the short-term contract yesterday. The contract was called for September, October and November for 150 MW. NVVN offered 75 MW at Rs 7.60, Tata Power offered 25 MW at Rs 7.97 and Manikarnan Power offered 25 MW at Rs 10.6 for the month of September. For October, Tata Power offered 75 MW at Rs 7.87, Semp Corp offered 50 MW at Rs 7.87 and Manikarnan offered 25 MW at Rs 7.97. For November, Tata Power gave a tender for 95 MW at Rs 6.95 and SEAP Corp for 50 MW at Rs 6.95.