Work of 128 hydel projects runs behind schedule in Kerala

THIRUVANANTHAPURAM: Even as Kerala state electricity board is hoping to make substantial financial gain on account of the Central Electricity Act amendment that gives power utilities absolute freedom to change monthly power tariff rate in tune with the cost of power generation and purchase, work of at least 128 small hydel projects worth 778MW capacity is running behind schedule in the state.
The amendment, which the states like Kerala opposed, gives power utilities the freedom to change their tariff rate on a real time basis. The additional spending on power purchase/generation can be collected from the consumers by way of levying surcharge.
Unlike the surcharge system that was in place, the utilities need not obtain prior approval from the state electricity regulatory commission. Instead, they can fix and collect the surcharge on the basis of a formula to be fixed by the respective regulatory commissions.
Though power minister K Krishnan Kutty said the government was keen on devising mechanisms to safeguard the public interest, KSEB has already started working on plans to explore the fresh opportunity to maximise its revenue.
The minister said the government was keen on devising a mechanism as per which the consumers will get the benefit of the dynamic tariff rate when the board's power purchase bills come down during the monsoon season and the following months.
The state heavily depends on power purchase from outside the state to meet the power demand most part of the year. On most occasions, the state generates only 30% of the power it requires. However, the ratio changes substantially during the rainy season.
It is in this context that the power minister told a high-level meeting of KSEB officials on Wednesday that the KSEB should explore legal options to provide relief to consumers by making substantial cut in the power tariff rate during the months when KSEB generates cheap power from hydel stations.
Wanchiyam small hydel project of 3MW in Kannur district is a classic example for the delay. The construction of the project started in 1993. The progress achieved by the project is only 20% even after 29 years.
The largest project under construction by KSEB is the 60MW Pallivasal extension scheme, which started in 2007. As per the original schedule, it was to be completed by 2017 and the board is all likely to miss the revised deadline of January 31, 2023. However, the department is hopeful to partially operationalise the Pallivasal project by this April. As per the minister's office, Pallivasal would start generating 30MW power from April.