The Kerala State Electricity Board (KSEB) has informed the State Government that it was plunging into a deep financial crisis on account of having to purchase high-cost power to guarantee uninterrupted power supply.
At a high-level meeting called by Electricity Minister K. Krishnankutty on Wednesday to review the power situation, the State-run utility sought the government’s urgent intervention to overcome the crisis.
The meeting, attended by top officials of the KSEB, including Chairman and Managing Director Rajan N. Khobragade, decided to review the power situation again on August 21. The KSEB has been asked to present a report at the meeting on options available to the State for managing the supply without imposing restrictions.
The KSEB observed that it has been compelled to go in for additional power purchases with the weak southwest monsoon forcing it to keep internal hydropower generation to a minimum.
Reportedly, the KSEB will approach the State Electricity Regulatory Commission seeking an extension for an interim arrangement whereby it was allowed to schedule power for 75 days from a set of long-term power supply contracts under Design, Build, Finance, Own and Operate (DBFOO) mode.
In May, the Commission had rejected a KSEB plea for approval for this set of long-term power purchase deals totalling 465 MW citing deviation from Ministry of Power guidelines. But, taking into account the power situation, it had allowed the KSEB to continue scheduling power until alternate arrangements were made. The 75-day period ends on August 21, according to KSEB sources.
Meanwhile, the combined storage in the hydel dams managed by the KSEB was stagnant at 37% (equivalent to 1531 million units) with the southwest monsoon weak over the State.
This is the lowest in recent years. Kerala has reported 44% rainfall deficiency during the current SW monsoon season. Idukki district, homes to the 780 MW Idukki hydel project, has reported a ‘large deficiency’ of 60%, according to the latest updates from the India Meteorological Department.
