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G.K. Nair

Dues to NTPC Kayamkulam plant and the oil companies which supplied diesel to the Kozhikode and Brahmapuram diesel power plants run into around Rs 800 crore. The Kozhikode plant (KDPP) with ``eight generators of a total capacity of 128 MW was virtually on ventilator, due to the non- payment of fuel cost to Bharat Petroleum (BP),'' KSEB sources said.

KOCHI, Jan. 27

POWER crisis in Kerala is likely to deepen in the coming months if the Government is not able to pay the dues to oil companies which supply fuel the State electricity board's diesel power plants.

The Government had already resorted to a cyclical 30-minute power cut during peak hours and this is likely to continue indefinitely. The power requirement during peak hours at 2,300 MW could be achieved if all the plants were operated.

Off-peak load was 1,250 MW, KSEB sources told Business Line. Currently, power generation is regulated, with 54 per cent from thermal plants and 46 per cent from hydel projects. This has increased the cost of power in the State. As a result, the State Electricity Board was losing Rs 90 crore every month, they said.

If diesel plants were to be shut down, then the only alternative will be to raise the share of hydel power and that would result in depletion of water storage in major reservoirs, they said. This would, in turn, lead to a serious power crisis in the State.

Dues to NTPC Kayamkulam plant and the oil companies which supplied diesel to the Kozhikode and Brahmapuram diesel power plants run into around Rs 800 crore.

The Kozhikode plant (KDPP) with ``eight generators of a total capacity of 128 MW is now virtually on ventilator, due to the non- payment of fuel cost to Bharat Petroleum (BP),'' they said. The Brahmapuram Diesel Power Plant (BDPP) was also facing a similar problem.

The Kozhikode station which could generate 1,000 million units (MUs) per annum was in dire straits in spite of the machines being in good condition, they said.

KSEB owed Rs 21 crore for the LSHS supplied by BP till the end of December 2001. Regular cash flow is a necessity as far as KDPP was concerned as BP had to supply a minimum one lakh tonne of LSHS to KDPP an year, enabling KSEB to produce 500 MUs of power. If they failed to supply this quantity, they are liable to compensate KSEB. If the board took only a lesser quantity than this, it had to pay a penalty of 33 per cent cost to BP for the unused quantity.

During 2000-01, KSEB purchased only 90,000 tonnes of LSHS, but as a goodwill gesture, BP did not claim any penalty for the shortfall. But due to the financial crisis, KSEB had purchased only 54,000 tonnes of fuel so far, and KSEB's purchase might not go beyond 65,000 tonnes in the current fiscal which ''means, KSEB will have to pay 33 per cent cost of 35,000 tonnes to BP this year,'' sources said.

From January 15, BP stopped fuel supply and KDPP resorted to peak running only with a paltry 800 tonnes fuel which was barely sufficient for generation of four MUs. After seven days, the fuel storage depleted to just 73 tonnes on January 22 and KDPP could neither produce energy nor shut down the machines.

According to KSEB officials at KDPP and system operation, KDPP power costs about 40 paise less than the Kayamkulam power on each unit generated.

If generation were reduced at KDPP, it would cost KSEB more by way of production cost, in addition to penalty payable.

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