KSEB mulls JV with NTPC to generate power

THIRUVANANTHAPURAM: With the practicality of the 2400-MW Cheemeni power project being questioned, the KSEB is now proposing to float a joint venture with the National Thermal Power Corporation (NTPC) for generating power for the state at the NTPC’s Ramagundam power project in Andhra Pradesh.Ramagundam is in line for an expansion."NTPC has agreed in principle. The Union Power Ministry, NTPC chairman, KSEB chairman and the state power secretary are working out the details,” Power Minister Aryadan Mohammed said here on Monday. “However, the Cheemeni proposal also is being considered by the state government,” he added.A joint NTPC-ANERT scheme is being proposed for generating 80 MWs of wind energy at Ramakkalmedu, Attappadi and Kanjikode.“In Attappadi, tribal land will have to be acquired for the purpose, but the State Government will go ahead with the project only after safeguarding the interests of the tribal communities,” he said. "They will be given fair compensation, and the project will be implemented only on profit-sharing basis. The land will be acquired only if they are willing,’’ he said.CorporatisationThe State Government will make all efforts to transfer the assets and liabilities of the erstwhile KSEB to the new company by September 30, the deadline for the process, the Minister said on the corporatisation plans of the power utility.At present, the company has been registered under the name KSEB Ltd, but it remains a shell company as the assets and liabilities are vested with the State Government. The major hurdle in completing the process is that a pension fund worth Rs 4,520 crore has to be established, he said."We are trying to transfer the assets by September 30. However, the government can also extend the deadline,’’ he said.On the possibility of a tariff hike, the minister said that the government did not think it was required at present.