KSERC denies KSEB's request for long-term power contract approval
POWER & RENEWABLE ENERGY

KSERC denies KSEB's request for long-term power contract approval

The Kerala State Electricity Regulatory Commission (KSERC) has rejected a series of long-term power purchase agreements totaling 465 MW that were made by the Kerala State Electricity Board (KSEB).

The KSEB had requested approval for multiple power supply agreements (PSAs) with Jhabua Power (115 MW), Jindal Power (150 MW), Jindal India Thermal Power (100 MW), and Jhabua Power (100 MW) under 25-year Design, Build, Finance, Own and Operate (DBFOO) contracts. However, in an order issued on May 10, T K Jose, Commission chairman and A J Wilson, member stated that the Commission is rejecting the KSEB's petition for final orders regarding the power drawal from the "unapproved PSAs."

The KSEB had faced criticism for various violations in the execution of these long-term purchase agreements. These violations included not adhering to the guidelines set by the Ministry of Power, deviations in the selection of bidders and power capacity, and failing to obtain prior approval from the Commission for signing power purchase agreements with the power generators.

It was highlighted that some of these deviations could have resulted in an additional liability of Rs 2.37 billion per year.

The power purchase agreements for 465 MW were part of a larger long-term procurement plan for 865 MW, for which power supply agreements were already made in 2016 and 2017.

However, the Electricity Regulatory Commission identified certain procedural deviations in the agreements. It was discovered that the KSEB had not obtained prior approval from either the Commission or the Central government for these agreements or the deviations from the guidelines. The KSEB, on the other hand, denied any wrongdoing.

Also read:
GAIL to build Maharashtra ethane cracker at Rs 400 bn
Noida, Greater Noida to set up waste-to-energy plant


The Kerala State Electricity Regulatory Commission (KSERC) has rejected a series of long-term power purchase agreements totaling 465 MW that were made by the Kerala State Electricity Board (KSEB). The KSEB had requested approval for multiple power supply agreements (PSAs) with Jhabua Power (115 MW), Jindal Power (150 MW), Jindal India Thermal Power (100 MW), and Jhabua Power (100 MW) under 25-year Design, Build, Finance, Own and Operate (DBFOO) contracts. However, in an order issued on May 10, T K Jose, Commission chairman and A J Wilson, member stated that the Commission is rejecting the KSEB's petition for final orders regarding the power drawal from the unapproved PSAs. The KSEB had faced criticism for various violations in the execution of these long-term purchase agreements. These violations included not adhering to the guidelines set by the Ministry of Power, deviations in the selection of bidders and power capacity, and failing to obtain prior approval from the Commission for signing power purchase agreements with the power generators. It was highlighted that some of these deviations could have resulted in an additional liability of Rs 2.37 billion per year. The power purchase agreements for 465 MW were part of a larger long-term procurement plan for 865 MW, for which power supply agreements were already made in 2016 and 2017. However, the Electricity Regulatory Commission identified certain procedural deviations in the agreements. It was discovered that the KSEB had not obtained prior approval from either the Commission or the Central government for these agreements or the deviations from the guidelines. The KSEB, on the other hand, denied any wrongdoing. Also read: GAIL to build Maharashtra ethane cracker at Rs 400 bn Noida, Greater Noida to set up waste-to-energy plant

Next Story
Infrastructure Urban

Afcons shares gain momentum with Bhopal Metro Line 2 project

Afcons Infrastructure made a quiet debut on the stock market on Monday but quickly gained momentum after emerging as the lowest bidder for the Bhopal metro project line 2 package.The Bhopal Metro Phase 1 project’s 12.915 km Blue Line (Line-2) will link Bhadbhada Chauraha and Ratnagiri Tiraha, spanning 13 elevated stations. This package, issued by the Madhya Pradesh Metro Rail Corporation (MPMRCL), involves constructing all 13 stations of the Blue Line’s viaduct. The depot will also be shared with the Orange Line (Karond Circle to AIIMS) for maintenance and stabling purposes.Afcons’ exten..

Next Story
Infrastructure Transport

Locals urge CM to opt for road bypass over flyover at Dandeavaddo

Chinchinim villagers respectfully requested Pramod Sawant, Chief Minister, to instruct the Public Works Department (PWD) and the National Highway authorities to construct a road bypass instead of a flyover on the Dandeavaddo stretch of NH66. The villagers, led by Sarpanch Frank Viegas and Velim MLA Cruz Silva, also raised the long-standing issue of building the Chinchinim Panchayat Ghar and a multi-purpose project on panchayat land that was acquired more than 15 years ago. The delegation met the Chief Minister at the St. Sebastian Chapel junction in Chinchinim as he was returning home from a..

Next Story
Infrastructure Transport

MLA Yashpal Suvarna Announces Malpe-Udupi Highway Construction from Nov 6

MLA Yashpal Suvarna instructed officials to commence work on the Malpe-Udupi Highway on Wednesday. A meeting took place, attended by MP Kota Shrinivas Poojary, Udupi MLA Yashpal Suvarna, and Kaup MLA Suresh Shetty Gurme, to discuss the National Highway 169A project, which spans from Malpe to Udupi, covering areas like Hiriyadka, Parkala, and Perdur. The project had experienced delays due to incomplete land acquisition, but compensation notices have now been issued to the landowners. Of the 214 land acquisition files, 19 pertain to government land, while 195 involve private owners. Notices ha..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000