Kerala’s proposed long-term purchase of 540MW from Maharashtra’s Sinnar Thermal Power Plant is awaiting confirmation of the enhanced allocation and approval of a modified agreement from Maharashtra State Power Generation Company Ltd (MAHAGENCO), according to correspondence reviewed by The Times of India.
The Kerala State Electricity Board Ltd (KSEBL) has sought an early response from MAHAGENCO on both issues so that the proposed power procurement can move forward. A letter dated November 7 records the request amid the ongoing controversy over power purchases in the state.
KSEBL had initially expressed interest in procuring 300MW from the Sinnar plant at a levelised tariff of Rs 5.18 per unit at the generator ex-bus level. The ex-bus price is the rate at the generating station before transmission charges are added.
The board later sought to increase the proposed procurement to 540MW, citing Kerala’s growing power demand and the need to secure additional long-term power availability. KSEBL requested the enhanced allocation from MAHAGENCO on October 8, but confirmation of the additional quantum has not yet been received.
The Sinnar Thermal Power Plant is located in Nashik and has five units with a combined installed capacity of 1,350MW. The proposed 540MW allocation would therefore represent a substantial share of the plant’s installed capacity, although the report does not specify how the allocation would be distributed among its units or when supply would begin.
The two utilities began exchanging communications in July. MAHAGENCO forwarded a communication on the proposed power supply on July 28, followed by further correspondence in September. KSEB formally conveyed its interest in procuring 300MW on September 18 before seeking the higher quantum in October.
A draft power purchase agreement for the initial 300MW procurement had also been forwarded to KSEB for consideration. The available report does not provide the agreement’s proposed tenure, transmission charges, regulatory clearances, commissioning schedule or the status of approval within Kerala.
The immediate decisions required from MAHAGENCO are confirmation of whether the additional 240MW can be allocated and approval of the modified agreement reflecting KSEBL’s revised requirement. Those responses will determine whether the proposed procurement can proceed on the expanded 540MW basis or remain linked to the original 300MW proposal.
