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 Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?