Sarma hints at pro-hydel tilt in power policy

By Our Special Correspondent

THIRUVANANTHAPURAM, DEC. 11. The Electricity Minister, Mr. S. Sarma, today hinted at a shift in the LDF Government's power policy in favour of hydroelectric projects.

Addressing a press conference here today, Mr. Sarma said the State had promoted thermal generation capacity in the last four years as a short-term measure to meet its power demands.

But it had become imperative for the State to think seriously about implementing hydel projects because of the huge generation costs of thermal power and the debilitating effect they had on the finances of the Kerala State Electricity Board.

He said that the State's current thermal generation was sufficient to meet its power needs at present, but it had to think seriously about implementing hydel projects to cross- subsidise power tariff.

He disclosed that the State was in the process of implementing 14 hydel projects, with a total capacity of 1,000 MW. "We believe that once these projects are commissioned, it would be possible for the KSEB to become profitable. The main question before the Government was whether power tariff should be increased in the light of the high cost of producing power through thermal capacities. Even though technically this might be true, we cannot overlook the social aspects of the issue in the context of the overall development. Our approach to the issue is that hiking power tariff would not solve the problem. We are seeking ways to generate cheap electricity so that the cost of power could be kept nominal and provide relief to the consumers and save the KSEB. It is in this context that hydel projects are being implemented as a special drive," he said.

In reply to a question, the Minister said that the 1,000-MW projects included the small ones, like the Chinese-aided, and the large ones, like the Kuttiadi extension and Sabarigiri renovation schemes.

He said that the State Government could enhance generating capacity to around 900 MW during the last three years, in spite of the grim prospects the power sector had been facing.

He said that the State Government had been maintaining power tariff at nominal levels, even at the cost of a financial drain on the KSEB. The task before the State was to sustain the self- sufficiency it had achieved at the least cost and also to ensure the supply of quality power.

He said that a two-day workshop would be organised in Kochi on December 13 and 14 to discuss the power development strategy for Kerala, under the auspices of the KSEB, the Centre for Energy Management, the National Thermal Power Corporation, Kerala Power Finance Corporation and Agency for Non-Conventional Energy and Rural Technology.

The strategy would be discussed over seven technical sessions, to be attended by more than 200 delegates, including experts, trade union and political leaders.

The Minister also announced the energy conservation awards of the State Government. The judging committee, however, did not announce an award in as many as eight categories covering large- scale, medium, small, transport organisation, local bodies and media.

However, it recommended commendation certificate to the Hindustan Newsprint Ltd, the Liquid Propulsion Systems Centre and the Ammini Energy Systems Private Ltd. under the large-scale, building complex, and research and development categories

The only person to be given an award is Mr. V. R. Rajendran of Idukki, who, according to the press note distributed at the press conference, had been selected for his contribution as an individual in convincing end users on the viability of waste-to- energy projects and installing and operating a few plants in many places in Central Kerala and South Tamil Nadu.

Mr. K. G. Vasu was selected for a commendation certificate for his contributions and sustained efforts to the development and improvisation of the "Parishad Aduppu". The CMC director, Prof. V. K. Damodaran, said that the Centre was spending something like Rs. 70 lakhs on various energy conservation activities.

He claimed that during the last three years it had been functioning, the CMC had been able to achieve success. Asked whether the no-award situation was the outcome of lack of interest, Prof. Damodaran explained that such a situation had come about owing to the change in the award norms.

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