ALAPPUZHA: Even as the state faces a severe power shortage, the 350-MW Rajiv Gandhi Combined Cycle Power Plant of the National Thermal Power Corporation (NTPC) at Kayamkulam has remained idle for nearly a decade. At the same time, as per an agreement, Keralam has been spending `100 crore annually towards fixed costs even without a single unit being generated at thee plant.
The state has been facing a shortage of around 400 to 500 MW in recent weeks, and experts say resuming production at Kayamkulam could help ease the crisis. The plant was commissioned in 1998-1999 to address the state’s power deficit and runs on naphtha.
With naphtha prices rising sharply, power generated there has become significantly more expensive than electricity from other sources. An NTPC official said the company is ready to resume generation if the KSEB makes a formal request, though it would take at least 45 days to procure and transport naphtha from Kochi.
“Generation cost will be higher due to rise in naphtha prices after petroleum product rates shot up owing to the Gulf war,” said the officer. With naphtha currently costing around Rs 50,000 per tonne, power generated at the plant would cost an estimated Rs 15-Rs 20 per unit, officials said. This is considerably higher than hydel power. According to another NTPC official, the company had approached the state government after the LNG terminal was established at Puthuvype, seeking permission and support to shift the plant to LNG.
Though the government approved the proposal, the pipeline project was dropped following protests from fishermen’s organisations.
Power Minister Sunny Joseph said he has discussed the issue with NTPC top officials. “They have responded positively to restarting generation, and more discussions will be held soon,” he said.
New pipeline offers hope
Amid the crisis, the proposed Kochi-Kanyakumari-Thoothukudi natural gas pipeline is likely to offer a lifeline to the idle plant. The Indian Oil Corporation (IOC) board approved a Rs 2,448.70-crore project to lay a 424.65-km pipeline connecting Kochi with Kanyakumari and Thoothukudi to transport regasified LNG from the Kochi terminal.
Union Minister of State for Petroleum and Natural Gas Suresh Gopi told TNIE that the pipeline will provide an opportunity to utilise the Kayamkulam plant during peak-demand periods, helping balance the grid and reduce dependence on costly peak-power purchases wherever economically viable.