+
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
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?