Chennithala alleges corruption in Kerala govt's Rs 8,850 crore deal to buy power from Adani

The Congress leader alleged that the LDF government has helped Adani by signing an agreement to loot the state for the next 25 years
Kerala Opposition Leader Ramesh Chennithala (Photo | EPS)
Kerala Opposition Leader Ramesh Chennithala (Photo | EPS)

ALAPPUZHA/KOCHI: Alleging corruption in the Rs 8,850 crore agreement signed by the Kerala State Electricity Board to purchase power from Adani Renewable Energy Park through Solar Energy Corporation of India (SECI), Opposition leader Ramesh Chennithala said the 25-year deal will ensure a profit of Rs 1000 crore to the Adani group.

Speaking to mediapersons at Haripad on Friday, Chennithala demanded cancellation of the agreement between KSEB and SECI signed in June and September 2019. He said the agreement was signed taking advantage of the Renewable Purchase Obligation under which each state has to meet a specific percent of the power requirement from renewable energy sources. While wind power is available at Rs 2 per unit, Kerala has signed an agreement to purchase solar power at the rate of Rs 2.82 per unit from the Adani group. Chennithala said power from other renewable sources is available at Rs 1 per unit.

He alleged that the LDF government has helped Adani by signing an agreement to loot the state for the next 25 years. No country in the world signs a power purchase agreement for 25 years as the cost of solar energy has been declining over the years. The state government which has been fighting against handing over Thiruvananthapuram airport to Adani group has secretly entered into a shady deal with the same group for power purchase, he said.

“The KSEB signed the agreement with Adani group for purchase of electricity at the rate of Rs 2.80 per unit for 25 years. The power purchase rate is higher than the market rate. The Union government has also played a role helping the Adani group,” Chennithala said.

Denying the allegations, KSEB chairman N S Pillai told The New Indian Express that the KSEB has signed the deal with Solar Energy Corporation of India following the procedure and there is no agreement with Adani group. "The deal was signed after inviting tender through Discovery of Efficient Electricity Price (DEEP) portal and obtaining permission from the State Electricity Regulation Commission (SERC). There were three other bidders like Betam Wind Energy, Ostro Energy and Spring Vaayu Urja Pvt Ltd. We came to know about the successful bidder only after finalising the deal. As per the agreement 200 MW power will be provided at the rate of Rs 2.82 per unit and the remaining 100 MW will be provided at the rate of Rs 2.80 per unit," he said.

The chairman claimed that this is the lowest power purchase rate in the history of KSEB. "The Renewable Purchase Obligation (RPO) mandates that all electricity distribution licensees should purchase or produce a minimum specified quantity of their requirements from renewable energy sources. Non-compliance with the obligation will attract a penalty of Rs 1 per unit. As per the target, Kerala had to purchase 4 percent solar power and 8 percent power from other renewable energy sources in 2019-20. The target set by the regulator for 2020-21 is 5.25 percent and 9 percent which will go up to 6.75 percent and 10.25 percent in 2021-22," he said.

Pillai said Kerala is purchasing additional 150 MW power through the Power Trading Corporation for two months to meet the rising demand due to summer. The state's daily power consumption has gone up to 85 million units per day."We are purchasing 150 MW for April and May at the rate of Rs 3.04 per unit. The power is sourced from Adani group and GMR," he said.

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