As coal crisis deepens, KSEB turns to once-dumped Kayamkulam NTPC

Urges NTPC to refurbish naphtha-based thermal plant lying idle for the past five years
As coal crisis deepens, KSEB turns to once-dumped Kayamkulam NTPC

KOCHI: Dumped five years ago citing high generation cost, the Kerala State Electricity Board is now warming up to Kayamkulam NTPC power plant to tide over the looming power crisis triggered by acute coal shortage. The KSEB has urged NTPC to refurbish the naphtha-based thermal power plant which has been lying idle for the past five years.

“We have urged Kayamkulam NTPC power plant to purchase naphtha for one cycle (15 days). The KSEB will provide the cost of fuel and generation. The NTPC has to refurbish the plant which will take 30 days. If the fuel is made available we can draw power from Kayamkulam during a crisis situation. As the coal crisis deepens we will have to tap alternative sources. The cost of the power will be around Rs 17 per unit, but we are making short-term purchases at the same rate. It is availability not cost that matters,” KSEB chairman B Ashok told TNIE.

The 350 MW Rajiv Gandhi Combined Cycle Power Plant in Kayamkulam was established in 1995 at an expense of Rs 1,200 crore and KSEB had entered into an agreement with NTPC to purchase the entire power generated at the plant till 2013. The agreement was renewed for another 12 years in 2013. As the price of naphtha shot up the cost of power touched Rs 15 per unit in 2017 and KSEB stopped purchasing power from Kayamkulam.

Though the KSEB stopped purchasing power from NTPC, it had to pay Rs 298 crore as annual fixed charge in honour of the original agreement. The amount was reduced to Rs 200 crore during the previous tariff period. But as the liability grew, KSEB stopped payment. In 2021, KSEB signed a new agreement in which the annual fixed charge was reduced to Rs 100 crore a year.

A meeting of KSEB director board on Saturday requested the coal-based NTPC power plants to initiate immediate steps to get adequate stock of coal. As per reports NTPC Simhadri, Kudgi, Ramagundam, NTPL Toothukudi, Jindal Power, Valloor and Mejia power station in West Bengal have less than 28 per cent coal stocks.

KSEB load dispatch centre gets nod to buy Power
The director board gave permission to KSEB load dispatch centre to purchase 100 MW from Power Exchange India Ltd at the rate of Rs 17 per unit. As additional power purchase has helped to tide over the present crisis, the board decided to do away with the 15-minute load shedding during peak hours.

CITU is sole bargaining agent

Kochi: The KSEB Workers Association (KSEBWA), the trade union affiliated to the CITU, has emerged as the only qualified employees union in the Kerala State Electricity Board. In the referendum held on Thursday, the KSEBWA polled 53.4% of the polled votes and got qualified as the sole bargaining agent among trade unions in the state power agency. Among the seven trade unions that participated in the referendum, only KSEBWA could qualify as approved trade union. The UDF supported UDEEF and the KSEB Workers Federation which is affiliated to AITUC failed to garner the mandatory 15 per cent vote to qualify as approved trade unions. The two unions lost the mandate they got in the last referendum in 2015. Additional Labour Commissioner K Sreelal was the returning officer Votes were counted at the Regional Joint Labour Commissioner office in Ernakulam collectorate on Saturday.

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