THIRUVANANTHAPURAM: The state government has asked state PSU Travancore Cochin Chemicals Ltd (TCCL) to hand over 20 acres of its land in Ernakulam district to the Kerala State Electricity Board(KSEB). Currently, the land is under lease to BSES Kochi Pvt Ltd (BKPL).
The move is intended to solve the long-standing dispute over TCCL’s huge power bill arrears and as a condition for permitting it to purchase electricity using the open access mode.
The TCCL must hand over full ownership of the land to the KSEB as the state PSU cannot opt for open access when it owes over Rs 300 crore-plus in arrears, the government said. “The transfer shall be subject to the condition that the KSEB shall not alienate the land under any circumstance,” a Power Department order on the matter said.
Open access is useful for electricity consumers, notably big companies, to buy electricity from suppliers other than the KSEB. They can use KSEB facilities like transmission lines to bring home the power by paying the required charges. This is meant to make the power sector competitive and ensure quality power to consumers.
Over the years, TCCL has emerged as one of the biggest defaulters on the KSEB list. At present, according to the government, the principal amount owed by the company stands at Rs 125.25 crore, but when the piled-up interest also is added, it goes up to Rs 311.50 crore. But under the one-time settlement scheme of the KSEB, the amount owed can be whittled down to Rs 180.16 crore, the government said. It is in lieu of this amount the ownership of the land has to be transferred.
Though the land was transferred earlier to the KSEB, the decision was kept in abeyance. The LDF Government had taken up the issue after it came to power. “The latest decision is a win-win situation for the TCCL, which is a power-intensive company, and the KSEB. It will help TCCL to break even and the KSEB can utilise this land constructively,” KSEB director (finance) N S Pillai said.
Unpaid electricity bills, especially those of high-end power consumers, remain a big headache for the KSEB. Consumers, including the Kerala Water Authority, owes the KSEB Rs 2044.78 crore in arrears, as on December 31, 2016.