KOCHI: The two-decade old stand-off between the state and the National Thermal Power Corporation over purchase of power from the 350MW Rajiv Gandhi Combined Cycle Power Plant in Kayamkulam is all set to end as the two have arrived on an amicable settlement. The agreement will be presented before the cabinet for approval shortly.
The KSEB had inked an agreement with the NTPC on January 6, 1995, to purchase power from the Kayamkulam plant. As the price of naphtha shot up, the project became unviable with the cost climbing to `12 per unit.
Though the KSEB stopped purchasing power from NTPC, it was made to pay `298 crore as annual fixed charge in honour of the original agreement. The amount was reduced to `200 crore during the previous tariff period. But as the liability grew, KSEB stopped payment.As per the new agreement the annual fixed charge will be reduced to `100 crore a year during the new tariff period.
The KSEB was under pressure to settle the dispute as the state purchases 70 per cent power from outside and NTPC is the largest power generating company in the country. The NTPC had served a regulation notice on the KSEB and the state power utility had moved the high court against the fixed charges.
“The agreement will help reduce the burden of the KSEB and maintain good relations with the NTPC. If the cabinet approves the agreement, we will be able to purchase solar power generated by NTPC at Kayamkulam plant at the rate of `2.92 per unit,” said an officer.
CFL, filament bulb-free state in two years
The KSEB has drawn an ambitious plan to make the state free of mercury lamps, CFLs and filament bulbs (incandescent light bulbs) within two years. The board will distribute 1 crore LED bulbs shortly and plans to distribute 5 crore bulbs during the next two years. This will help to reduce the power consumption during peak hours by 250 MW. The state government has drawn a plan to distribute 14 lakh LED lamps to local bodies to remove mercury lamps in a phased manner. As many as 2 lakh LED bulbs will be distributed in 2021 as the first phase of the project.
The KIIFB will avail a loan to fund the project which will be repaid in instalments from the plan fund of local bodies. The bulbs have a warranty period of seven years and are provided by Energy Efficient Services Ltd, the nodal agency of the Union government. The KSEB delivers LED bulbs with a warranty period of 3 years at the doorstep of consumers at the rate of `65 for a 9 Watt bulb. It will collect used filament bulbs and CFLs and dispose them of safely.