The Hindu : Front Page : Private mini-hydel projects by 2009

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Wednesday, Dec 06, 2006
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Private mini-hydel projects by 2009

C. Gouridasan Nair

THIRUVANANTHAPURAM: With the State Cabinet clearing four mini hydroelectric projects on Monday, Kerala has made its first foray into private power generation in the hydel sector for mass consumption.

Until now, only captive power plants have come up in the hydel sector in the State. The four mini hydroelectric projects, being promoted by Kochi-based Parkson Hydro Projects, a consortium involving four entities, are expected to go on stream by 2009. The projects will have a combined installed capacity of 20.5 megawatts and together see investment in the region of Rs.125 crore. Three of the four projects should be ready by the close of the 2007-'08 fiscal and the fourth in 2008-'09, Varghese P. Mathew managing partner of Parkson Hydro Projects, has said.

The four projects would together generate 65 million units of power annually and remain operational for eight months a year. The projects that have been cleared are Upper Vattappara (3 MW) and Lower Vattappara (7 MW) in Palakkad district, Upper Peringol (7 MW) in Thrissur district and Kurumpetti (3.5 MW) in Pathanamthitta district. Work on these projects will begin in 2007 and except for the Upper Peringol project, which is being executed across Chalakudy river, all the projects are expected to be commissioned within a year. The projects are being executed on Build, Own, Operate and Transfer basis, the transfer set to take place in the 25th year.

Power from these projects will be supplied to the Kerala State Electricity Board (KSEB) at Rs.2.90 a unit during the first 10 years and at Rs.1.50 during the remaining 15 years, according to Parskon Estates and Industries managing partner Varghese P. Mathew.

The group had originally tied up with the Russian firms Gidroenergoprom and Interural for taking up the hydel projects and won the pre-qualification and financial tenders on January 27, 2003. However, the Russian firms opted out of the consortium due to non-clearance from the Russian Government for their participation in the consortium. Following this, Parkson Estates and Industries tied up with Indsil Electrosmelts Limited, Coimbatore. The relevant file was awaiting Cabinet clearance since April 2006.

Mr. Mathew said Kerala Hydro Projects has Tarani Infrastructure Limited of the Aban Lloyd group, Chennai-based Real Value Properties, Coimbatore-based Indsil Electrosmelts Limited besides Parkson Estates and Industries that he heads. Financial institutions have offered to fund 75 per cent of the projects.

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