The Hindu Business Line : `No power cut this year'

THERE is no need for power cuts in the State this year even though the consumption is more than double the generation in the State, according to the Minister for Power, Mr Aryadan Muhammed.

Replying to questions in the State Assembly on Tuesday, he said the daily power consumption in the State was 37.94 million units as against the domestic generation of 17.88 million units. The shortfall was being met by drawing power from the central grid and other sources.

The Minister said that from April 2004 to February 2005, the domestic hydel projects could meet 51.19 per cent of the requirement and the balance 48.81 per cent was drawn from thermal projects within and outside the State.

He informed the House that according to the estimates of Central Electricity Authority, the per capita consumption of power in Kerala in 2003-04 was 386 kwh. The State was placed 26th in per capita consumption in the country.

As part of the efforts to raise per capita consumption, the Electricity Regulatory Commission intended to introduce "rationalised tariff" for industries. Also, increase in power tariff would be avoided as far as possible and subsidies would be extended to encourage higher consumption.

Mr Muhammed said the Kerala State Electricity Board (KSEB) had debts to the tune of Rs 4,780.72 crore as on January 1, 2005. The existing interest rates for the loans varied between 5.95 per cent and 16 per cent and the board had initiated steps to swap high-cost loans with low-cost loans. This was expected to result in a saving of Rs 220.93 crore in interest payments.

Apart from swapping of loans, the other measures being adopted by the board to lessen the debt burden included intensifying the drive to collect arrears, bringing down transmission and distribution losses, cutting down administrative and wasteful expenditure and reducing the spending on power purchase.

This year, the purchase of power from outside was expected to cost Rs 1,549 crore, the Minister said.

For providing power supply to the regions not yet covered in the State, the Government had submitted a Rs 348-crore project to the Centre for assistance. The project, to be implemented by KSEB, was sought to be financed by way of 90 per cent grant and 10 per cent loans.

On development of non-conventional energy sources in the State, he said that 149 hectares of land in Idukki district had been given on lease to the Agency for Non-conventional Energy and Rural Technology (ANERT) to set up a project for wind power generation and the tenders had already been floated for the purpose.

Besides, ANERT had initiated steps to set up a "demonstration farm" of 2 MW, the Minister said.

Replying to a question on the status of the proposed 70-MW Pathrakkadavu project, he said the detailed project report in this regard had been prepared and the necessary environmental studies completed.

A public hearing on the project was also held on May 21, 2004.

Now the project was awaiting the clearance of the Union Ministry for Forests and Environment, the Minister said and added that the project could be commissioned within five years after getting the clearance.

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