THIRUVANANTHAPURAM: With concerns raised regarding safety, the state electricity regulatory commission has asked the Kerala State Electricity Board (KSEB) to buy electricity from private power plant BSES Kochi Pvt Ltd (BKPL) to use up hazardous naphtha stocks left in the plant.
KSEB had ended its power purchase agreement (PPA) with BKPL in October 2015, but the 157 MW plant had not disposed of the remaining naphtha fuel stocks.
Government agencies had, however, expressed concern regarding the hazardous nature of the fuel. Around 6,500 MT of naphtha lie unused at the plant while another 4,450 MT are stocked at IOC, BKPL’s supplier, for use at the 157 MW power plant.
According to the regulatory commission, the fuel is ample to generate 62 million units. Besides, the explosives’ licence issued to BKPL ends on December 31, another reason why the commission - on the basis of a High Court order - has asked the KSEB to purchase power from the plant. Underlining the importance of public safety, the court had pointed out “one cannot completely ignore the human error, which could lead to a major disaster.”
The KSEB will be able to purchase electricity on unscheduled interchange (UI) rates which come to less than `4 per unit, commission officials said.
“These arrangements are specifically for liquidating the naphtha stocks. For UI, no PPA is needed,” commission member S Venugopal said.
The PPA between BKPL and BKPL, signed in 1999, had ended on October 31, 2015. Although BKPL sought an extension, the regulatory commission declined it as the two entities could not agree on tariff.