Kerala State Electricity Board (KSEB) has managed to tightbelt its revenue deficit (RD), selling its relatively low-cost hydel-based power to other states, mainly Tamil Nadu. At the same time, when Kerala’s hydel reservoirs went dry, the Board also had to resort to draw 300 mw from the Centre grid.
KSEB’s persistant RD (Rs 142 crore in 2006-2007, pummelled down from Rs 342 crore in 2004-2005)) is likely to dissolve away in a year or two, if its higher realisation (from sale of power) continues in the present trend. Just at the Q1 of the current fiscal, by selling hydel-based power, the Board has gleaned as much as much as Rs 1,956 crore, sources in KSEB revealed.
Sale to Tamil Nadu Electricity Board (TNEB) was big factor in shoring up the average tariff realisation. A senior official in KSEB told FE that in the last year, the income from sale to other state power utilities went up four times. To NVVN (NTPC Vidyut Vyapar Nigam) and TNEB, KSEB had sold power at the rate of Rs 4.99 per unit and Rs 5.66 paise per unit respectively in 2006-2007. This had pegged up the average tariff-realisation by about 5%.
But then, would that mean that Kerala’s own power demand is thinning, raising concerns of a low industrial power appetite? The consumption statistics point to the contrary. According to the 17th Electric Power Survey of India, Kerala is next only to Andhra Pradesh in the annual growth of power consumption.
The toughest challenge in KSEB’s way in the coming year would be to keep the hydro-thermal mix at its cost-optimal 51:49 ratio. Despite the high naphtha and LSHS costs, the Board has already hinted at its intent to dip into 100 mw thermal power this year. In ramping up the hydel power, the Board is facing green outrage for its mantelpiece project (163 mw installed capacity) at Athirapally waterfalls.
At the same time, taking a useful leaf out of its star client Tamil Nadu’s books, KSEB has finally taken the wind energy plunge. Two private entrepreneurs – Suzlon Energy and Vestas India – are out to get their wind energy turbines whirring in Kerala this year.