Kerala is expected to receive 540MW of electricity from NTPC from February at a reported rate of Rs 5.40 per unit, according to a report by the Times of India, but the precise supply schedule and contractual status remain unclear in the information available. The report also says the state will receive 270MW during December and January and that additional power may be supplied from NTPC’s Sinnar plant during April and May.
The reported allocation follows discussions in New Delhi on October 6 between chief minister V D Satheesan and the NTPC chairperson. Satheesan had sought a higher allocation for Kerala, which is exploring an increase from its existing 640MW allocation to as much as 1,000MW, the report said.
The reported tariff of Rs 5.40 per unit is central to the state’s procurement decision. Satheesan said Kerala would buy electricity from the source offering the lowest rate and that there would be no reason to purchase power through the existing arrangement with GNA if NTPC electricity was available at a cheaper price during April and May.
The report attributed the update to statements made by Satheesan after a cabinet meeting. It said NTPC had informed the Kerala government that it would supply 540MW from February following an agreement. However, it also said that a formal agreement with the company was expected to be reached shortly. This leaves the legal and operational status of the reported arrangement unconfirmed in the supplied material.
The timing is also not fully established. The report refers to 270MW being supplied in December and January, 540MW from February, and power from the Sinnar plant during April and May. It does not clarify whether these are successive allocations under one arrangement, separate seasonal contracts, or preliminary proposals under discussion.
For Kerala’s power system, the distinction matters because the state’s procurement requirement and costs vary across periods of demand. A larger allocation from NTPC could reduce reliance on more expensive short-term purchases if the reported tariff and delivery schedule are confirmed. The available report does not establish whether the Rs 5.40 rate includes transmission, scheduling or other associated charges.
The report said the NTPC board of directors met in New Delhi and that discussions had taken place with the company’s chairperson and other officials. It also said the power minister had separately been involved in efforts to secure additional electricity for the state.
A formal agreement, including the confirmed capacity, generating station, delivery months, tariff and associated charges, is expected to clarify the arrangement. Until those details are released by the Kerala government or NTPC, the reported 540MW allocation should be treated as a proposal or reported commitment rather than a fully documented supply contract.
