Financial Daily from THE HINDU group of publications
Wednesday, Dec 24, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 24, 2003 |
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Industry & Economy
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Power KSEB plea on hydel projects — `Opportunity denial compensation fund' for States sought Our Bureau
Thiruvananthapuram , Dec. 23 THE Kerala State Electricity Board (KSEB) has suggested to the 12th Finance Commission that the Centre may create a fund to compensate the loss suffered by the States on account of denial of permission to start hydel projects. In a memorandum to the commission, KSEB has pointed out that compared to the other states, the only source for power generation in Kerala is water. The State has been blessed with 44 rivers with the potential for generation of 4,333 megawatts. But till date, it has been able to harness only around 1,834 MW. Ever since 1982, the Centre has denied clearance to all the proposed hydel projects on grounds of ecological balance or conservation of bio-diversity. The first casualty was Silent Valley project and though the late Prime Minister, Mrs Indira Gandhi, had promised Pooyamkutty project instead, it, too, has been hit by ecological objections. The other projects for clearance have met with the same fate that resulted in the loss of potential generation of 1,200 MW. If cleared, these projects would have taken care of the entire requirement of cheap power in the State. It has been pointed out that one of the major reasons for the industrial and agricultural backwardness of the State is the shortage of hydro-power. It is now time to create an "opportunity denial compensation fund" to take care of the "opportunity cost" suffered by the states on account of ecological considerations. KSEB has also requested the commission to include the power sector in "disaster management" as the sector is the worst hit during droughts. By resorting to purchase of costly thermal power when the inflows into the hydel reservoirs taper off, KSEB has been incurring additional expenditure to the tune of Rs 1,264 crore. In the event, the Disaster Management Assistance, which has replaced natural calamity relief, may be extended to the power sector also, says the board.
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