August 30, 2008

KSEB signs PPA pact with NTPC for samadhari project

It is reported that the Kerala State Electricity Board has signed a power purchase agreement with the National Thermal Power Corporation for its share of electricity from NTPC’s proposed second stage of Simhadri power project in Andhra Pradesh. The agreement was signed by Mr AG Bhadran member of KSEB’s and Mr RS Sharma director of NTPC in the presence of Mr AK Balan minister of electricity for the state.

Mr Balan told media persons that NTPC will set up two units generating 500 MW of electricity each at Simhadri under the proposed second stage of its mega power project there. He said that a unit of electricity from such a project using coal as fuel and enjoying exemption from excise duty, customs duty and income tax under the power policy would cost Kerala only about INR 2.50 under the present circumstances. The tenure of the agreement is 25 years.

The project is coal based. The first stage was fully dedicated to Andhra Pradesh while all the Southern States will have a claim over the electricity generated under the second stage. Kerala has sought 200 MW from Simhadri.