Southern States - Kerala

Govt. yet to decide on BOT in power sector

By Our Special Correspondent

THIRUVANANTHAPURAM March 30. The Electricity Minister, Kadavoor Sivadasan, today said the Government had not taken any firm decision on going in for the build-operate-transfer (BOT) system of project implementation in sectors like power transmission and distribution.

At a press conference here, he said the BOT system, however, would be encouraged in the power generation sector, especially in the case of small hydel schemes. In fact, it was only a continuation of the policy followed by the previous LDF Government.

Responding to a question, he said the Chief Minister's recent remark that the BOT system would be encouraged in the transmission and distribution sectors "could have been a generalised statement given in the context of the overall policy of the Government.''

Referring to the decision of the National Thermal Power Corporation (NTPC) to divert the State's share of power from its generating stations to other States due to payment default by the KSEB, he said the State Government had communicated its willingness to securitise KSEB's liabilities with the NTPC.

The State Government, the KSEB and the Union Government would be signing a tripartite agreement, empowering the Centre to cut Kerala's share of Plan funds and divert the amount to the NTPC if the KSEB failed to settle the bill.

The KSEB owes the NTPC over Rs. 1,200 crores towards electricity received.

``The NTPC, it appears, has decided against pressing its demand placed with the Southern Region Load Despatch Centre for the diversion of Kerala's share of power from its generating stations to other States. I do not think the threat persists'', Mr. Sivadasan said.

He said the State Cabinet had cleared the KSEB's request to sell the high-cost power from the Kayamkulam station of the NTPC (which is a station fully dedicated to Kerala) to the other needy States. Negotiation for clinching the deal was now on with Tamil Nadu and Karnataka. The NTPC was also happy about the proposal, he said.

``Actually, we do not have any shortage of power. Our problem is that we cannot afford to buy the high cost Kayamkulam power. Even if the Kayamkulam station remains shut, we have to pay Rs. 22 crores a month by way of fixed charges.

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