Kerala SEB to pick stake in Kudankulam power project

Hari S Kartha

Thiruvananthapuram, Aug 14: Fund-starved Kerala State Electricity Board (KSEB) is planning to take stake in the proposed nuclear power project at Kudankulam in Tamil Nadu. The board’s proposed equity participation is expected to ensure adequate supply of power to the state at a fair rate.

While sources in KSEB confirmed the move, Kerala electricity minister Kadavoor Sivadasan said that no decision was taken in this regard. He, however, stated that Tamil Nadu had approached Kerala for equity participation in the power project.

KSEB, according to sources, proposes to have 15 per cent stake in the nuclear power project in neighbouring Tamil Nadu. The proposal for equity participation in Kudankulam project was originally mooted during the previous LDF regime. The present UDF regime is also not averse to the proposal.

Sources defended the move for equity participation on the ground that it would help the state get power from the nuclear plant at a cheaper rate. Another point being raised in support of the decision is the proximity of the project.

The nuclear project coming up at Kudankulam in Nellai district in Tamil Nadu, is only 75 km away from the state capital, Thiruvananthapuram.

Kerala government as well as KSEB are of the view that the cost of thermal power from NTPC’s Kayamkulam project in the state is very high. The cost per unit has gone up to Rs 5.50, the sources pointed out. Compared to thermal power, nuclear power could be much cheaper. The cost per unit of nuclear power is estimated at Rs 1.40.

Kerala cannot afford to depend solely on hydel power, though it continues to be the cheapest and the untapped potential for generation is still abundant. Already, several hydel power projects proposed by the state government is hanging fire. Recent attempts to revive the Silent Valley project, abandoned 20 years ago, have not been successful. Also the fate of Pooyamkutty project is hanging in balance.