THIRUVANANTHAPURAM: Even as the state explores its options to solve the imminent power crisis, two private companies have come forward in response to the tenders floated by the KSEB for mid-term power contracts. They have proposed to provide power at Rs 6.88 per unit, for five years.
Adani Power and DB Power Ltd quoted the price for supplying 303MW and 100MW, respectively, during the reverse e-bidding for the 500MW power purchase agreement (PPA) with KSEB. The board will open another tender for 150MW for one year on Tuesday.
Meanwhile, the state is contemplating reviving the cancelled 465MW PPA agreement. Chief secretary V Venu has called a high-level meeting on Tuesday to discuss the probable steps that need to be initiated in this regard.
On Monday, when the KSEB opened tender for the 500MW agreement, Adani Power and DB Power quoted Rs 6.90 and Rs 6.97 per unit, respectively. Later, during reverse e-tendering process they reduced the rate to Rs 6.88 per unit. Three companies — Jhabua Power Ltd, Jindal Power Ltd and Jindal Thermal Power Ltd — did not participate in the bidding.
The Kerala State Electricity Regulatory Commission (KSERC) had earlier cancelled a long-term agreement with these companies for purchase of 465MW power at `4.26 per unit. A top board official told TNIE that the KSEB director board will now take a call, which will have to be validated by the state government.
“However, the final decision has to be taken by the KSERC. If red-tape can be avoided, we should be able to get power from these companies in October itself. Usually the procedure to get the power takes 90 days as the companies need not show any haste just because we are desperate,” said a top board official.
Chief secy to meet board CMD today
Though the board had floated tender for 500MW, the companies have offered to provide only 403 MW. A power department official told TNIE that this is because demand for power is very high from other states too. On Tuesday, the board will open another tender for 150 MW power.
A third tender, a long-term 500 MW swap agreement, will be opened on Thursday. Chief secretary Venu will hold a meeting with board CMD Rajan Khobragade to look at the possibility of reviving the cancelled PPA. The meeting was called as directed by the chief minister. Power Minister K Krishnankutty had urged the CM to put pressure on the Centre to revive the agreement.
A top official told TNIE that Tuesday’s meeting is unlikely to come up with a final decision. “Many power ministers, secretaries and board chairmen have recorded their opinions in the file on the cancelled PPA. There was a vigilance enquiry too.
A high-level IAS team too had studied this agreement. The KSERC cancelled the PPA citing procedural lapses. The issue is now pending before the appellate authority of the Central Electricity Regulatory Commission. It will take a minimum of four years for them to take up our case,” he said.