Thiruvananthapuram: Expressing interest in the tenders floated by the Kerala State Electricity Board (KSEB) for the five-year medium-term contracts to solve the looming power crisis in the state, Adani Power and DB Power quoted Rs 6.88 per unit for the supply of power.
KSEB had invited bids for the supply of 403 MW to overcome the power crisis in the state.
In the bids that were opened on Monday, Adani Power agreed to supply 303 MW at Rs 6.88 per unit and DB Power 100 MW at the same rate.
KSEB officials said they will go ahead with the deal once they acquire the Kerala State Electricity Regulatory Commission's approval.
Both Adani and DB had originally quoted Rs 6.90 and Rs 6.97 per unit respectively. However, following negotiations, the quotes were revised to Rs 6.88 per unit on reverse bidding.
Though the new contract would see the board incur a loss of Rs 5 crore per day, it has no option but to buy power from private firms so as to avoid load shedding in the state.
Even though the tenders are confirmed, it would take another month before the state receives power. Till then, electricity will have to be purchased from the market at higher rates, which may lead to a hike in power tariffs in the future.
Prior to this, KSEB had a long-term contract for 465 MW from three companies for seven years. Electricity then was purchased at Rs 4.26 per unit. The agreement was signed during the UDF government's tenure. However, the contract was cancelled after the Regulatory Commission cited technical errors, following which the firms refused to supply electricity anymore.
The companies were Jabua Power Limited, Jindal Power Limited and Jindal Thermal Power Limited.
As the power crisis worsened, KSEB was forced to enter into new contracts.
At present, KSEB buys power for Rs 6.50 to Rs 8 per unit to avoid a power crisis.
The tender for the purchase of 200 MW on a short-term contract will be opened on Tuesday and the one for the purchase of 500 MW on Wednesday.
