KSEB Cleared to Procure 500 MW Power Under SHAKTI Scheme

23 Jun 2025 CW Team

The Kerala State Electricity Board (KSEB) has received regulatory clearance to initiate the bidding process for the procurement of 500 megawatts (MW) of round-the-clock (RTC) power, using coal allocated under the central government’s SHAKTI scheme. The Kerala State Electricity Regulatory Commission (KSERC) has approved several key deviations proposed by KSEB in the model bidding documents issued by the Union Power Ministry.

These deviations pertain to the request for qualification, request for proposal, and power supply agreement, enabling KSEB to proceed with the tendering process for long-term power procurement over 25 years.

The coal linkage was granted to Kerala last year under Part B (iv) of the Ministry of Coal’s SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) programme, which provides for fresh coal allocations to States for new power purchase agreements. Kerala has secured coal from the IB Field and Talcher Field, both operated by Mahanadi Coalfields Ltd (MCL), a subsidiary of Coal India Ltd.

Earlier this year, the State government approved the appointment of Central public sector undertaking PFC Consulting Ltd (PFCCL) as the transaction advisor for managing the procurement process. The major deviations approved by KSERC include changes to the delivery point of power, minimum capacity requirements, the payment security mechanism, the fuel supply agreement, and the method for calculating fixed charges.

With this regulatory green light, KSEB can now move ahead with securing long-term RTC power, enhancing the State’s energy security and supporting stable electricity supply for consumers across Kerala.

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