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Home KSEB Centre denies permission to proposed Thermal plant at Cheemeni

Centre denies permission to proposed Thermal plant at Cheemeni

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Centre has denied to give consent to set up, 1600-mw thermal power project in Cheemeni village of Kasaragod districtCausing a major set back to the States dreams of achieving self-sufficiency in power generation, the Centre has denied to give permission to set up, 1660MW  thermal power project in Cheemeni village of Kasaragod district.

The center has directed the Kerala State Industrial Development Corporation Ltd(KSIDCL), which was selected as the nodal agency and bid manager for development of this power plant to speed up the process for shifting the project from Kerala to Orissa from where it was proposed to transport coal needed for the project from Mahanadi Coalfields Ltd.

The reason sited by the center behind the refusal to Thermal power station is the density of population in the State as well as the difficulty of transportation of coal from the coalfields of Orissa. Centre also had threatened to take back the coal block, if the power project is not started urgently.

Recentlly the allocation of power from Centre generating stations to Kerala state was drastically reduced by the centre. Sri. V S Achutanandan, Chief Minister lead a march to Parliament on 17-10-2008 along with his cabinet colleagues and Left party leaders  in protest against the  discrimination of the UPA government against Kerala including issues related to power sector.

Kerala had proposed the Cheemeni project as a long term measure to meet the power deficiency of the state. Moreover, northern Malabar area is not having any generating station. The Kerala government has confirmed the availability of 2,000 acres of land for the development of the proposed 1,660-mw thermal power project .

KSIDCL and Kerala State Electricity Board are in the process of setting up an SPV for the project. KSEB will enter into a PPA with the SPV for purchase of power at a tariff to be arrived at through bidding process. KSIDCL has initiated the process to undertake environmental impact assessment study for the project. Following the transfer of land to the SPV and obtaining environmental and other regulatory clearances as well as coal linkage, the corporation will take the competitive tariff based bidding route to select the private investor. The Kerala government, through its agencies including KSEB, will hold 26 per cent equity in the SPV. The power project will consist of two units of 880 mw each. A total of 9 million tpa of coal has been envisaged for the project, for which KSIDCL has applied to the coal ministry. Coal for the project is likely to be supplied from Mahanadi Coalfields Ltd.

The decision of centre is considered as a blow to Malabar and to the development of Kerala as a whole.

 

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