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Home KSEB KSEB signs Power Purchase Agreement with Neyveli Lignite Corporation

KSEB signs Power Purchase Agreement with Neyveli Lignite Corporation

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KSEB special officer Rajiv Sadanandan and Chairman and Managing Director of Neyveli Lignite Corporation J.N. Prasanna Kumar signed the PPA Kerala State Electricity Board  signed new power purchase agreement  with Neyveli Lignite Corporation Limited on 10-11-2008 for the purchase of 70MW (14 per cent) of the energy generated at the latter’s 500-MW new plant coming up at Neyveli in Tamil Nadu. KSEB special officer Rajiv Sadanandan and Chairman and Managing Director of Neyveli Lignite Corporation J.N. Prasanna Kumar signed the document in the presence of Electricity Minister A.K. Balan at a function in Thiruvananthapuram.

The State is already eligible for 265 MW of power from Neyveli Lignite Corporation’s existing 2,520-MW generation facility at Neyveli. The State will start receiving 70 MW from the new plant from November 2009. The ongoing 500-MW expansion project will enhance Kerala’s share to 335 MW.

Addressing the media, Electricity Minister Mr. Balan said the power from Neyveli would cost the KSEB only around Rs.3 a unit.
The State would get an additional quantum of 392 MW of power from coal or lignite-based stations in Tamil Nadu and Andhra Pradesh as per three power purchase agreements (PPAs) signed recently. Besides the 70-MW one with Neyveli Lignite Corporation, the other PPAs waiting for fruition are one for 200 MW with the Simhadri (Andhra Pradesh) station of the National Thermal Power Corporation (NTPC) and another for 122 MW from the station being set up by the NTPC and Tamil Nadu State at Tuticorin, Mr. Balan said. “The present crisis in power availability in Kerala will ease quite a bit when we start receiving power from these stations under installation.”

Mr. Prasanna Kumar said lignite shortage in the recent months had hampered Neyveli Lignite Corporation’s ability to work to optimum capacity. The company was achieving a plant load factor of only 70 per cent now, while ideally it should be 80 per cent. There was some problem in getting land for lignite mining. This had been overcome and the company would soon be able to touch optimum levels, he said.

The shortfall in generation at Neyveli had also caused a corresponding reduction in Kerala’s share of power from this station.
 

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