Kerala - Others   

State to get 90 MW of power at cheap rates

Power charges will not be enhanced during UDF Government's term: Sayeed

NEW DELHI: Kerala will get an additional 90 MW of power at "cheap costs" from the central grids, starting from November 1, the formation day of the State.

This assurance was given by Union Power Minister P. M. Sayeed during a discussion with Kerala Electricity Minister Aryadan Mohammed.

He said the power charges would not be enhanced during the current term of the Congress-led Government. The State Assembly elections were slated in May next year.

"Not only the present Government, even the next Government would not be required to effect any increase in the tariff as the State Electricity Board is marching towards profit," he said.

Mr. Mohammed told mediapersons that the decision to give additional power would benefit the State Electricity Board (SEB) as the 90 MW of power (equivalent to two million units of power a day) would be available at a price of less than Rs.2 a unit as against nearly Rs.6 a unit charged by the National Thermal Power Corporation (NTPC).

He said the State was now receiving 180 MW of power from the NTPC's unit at Kayamkulam at a price of Rs.6 a unit.

Mr. Mohammed said the State had already been receiving 90 MW of cheap power since September this year. "In all, we will get 180 MW of cheap power from November 1 onwards," he added.

He said the Kerala Government requested the Centre to give cheap power in the wake of the supply of 180 MW of power from the Kayamkulam station.

Mr. Mohammed said the State had a power purchase agreement (ppa) with the Kayamkulam station to avail of the entire 360 MW of its installed capacity and to pay fixed charges of Rs.20 crores a month, irrespective of the power drawn from the station.

He said the SEB had been taking only 180 MW of power from the Kayamkulam unit, but had paid Rs.20 crores a month as fixed charge. The amount was reduced to Rs.10 crores when the State agreed to supply 180 MW to Tamil Nadu. But the NTPC supplied 180 MW to Tamil Nadu at cheap rates. Therefore, the State had also staked its claim for 180 MW of power against the backdrop of the loss suffered by the SEB because of the payment of fixed charges. The PPA with the Kayamkulam unit expired in February this year. "We staked claim for cheap power after the expiry of the PPA."

Mr. Mohammed said Mr. Sayeed assured the State to give another Rs.122 crores under the Rajiv Gandhi Grama Vidhyut Yojana (RGGVJ) for rural electrification. This would take the total amount under the scheme to Rs.343 crores.

The additional amount of Rs.122 crores would help the State achieve its rural electrification target in two years. The State had a comfortable power position. Even now the State meets its 52 per cent of its requirements from the hydel sources and the remaining from the central pool. Mr. Mohammed said the Government was not in favour of unbundling the SEB. In this context, he said the board had started making profit. - UNI

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