In a novel initiative, the Kerala State Electricity Board (KSEB) is going for a Swiss Challenge System to implement the 500-MW petroleum coke (petcoke)-based power project in the State. Petcoke is a byproduct from BPCL-Kochi Refinery, which will be available by December 2015, after the completion of the integrated refinery expansion project.
The initial procedures for the Swiss Challenge are likely to begin after the declaration of the election results.
The Swiss Challenge System is a bidding process to help private sector initiative in core sector projects.
It is an offer made by the original proponent to the implementing agency to perform a certain task.
Further, the Swiss challenge system, like the bonus system, allows third parties to make better offers for a project during a designated period with the simple objective of discouraging exaggerated development cost.
Accordingly, the original proponent gets the right to counter-match any superior offer made by the third party. Earlier, the Swiss Challenge System was experimented in the Ponnai Port project.
"Infrastructures Kerala Limited (INKEL) will first submit bids for the power project. Then the KSEB will invite bids from third parties.
"After getting the rates, the INKEL will have the right to better the bid if it wishes. The procedures for the same will start after the elections. Since the integrated refinery expansion project of BPCL-Kochi Refinery is moving smoothly, petcoke will be available on time," said INKEL managing director T Balakrishnan.
Under the project, envisaged as a green project, it will take at least three years to set up the plant, at an expected cost of '6,000 crore.
The FACT land at Ambalamugal and the HMT land at Kalamasserry are the probable sites for the power project, but it has not yet been decided.
It is estimated that each kilogram of petcoke produces 6,000 kcal of heat energy when combusted, 150 per cent more than what the same quantity of coal produces.
"The per unit cost of power generated at the proposed plant will be '5.91.
"The plant, which operates on Integrated Gasification Combined Cycle, will be environmental friendly. The land requirement will also be reduced by 20 acres," sources from the Kerala State Electricity Board said.
Source- Indian Express