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New allocation norms may intensify power crisis in Kerala



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State hosting generating station will reserve the right to 85% of power

Amended guidelines mooted by the Union Power Ministry for allocating power from the Central Generating Stations (CGS) in the non-competitive bidding route is set to intensify the power crisis in the State.

As per the draft guidelines forwarded for the governmentís approval, the State that hosts a generating station in the non-competitive bidding category would reserve the first right for availing itself of 85 per cent of the generated power. Stations coming under the competitive bidding route have been exempted from this norm.

The remaining 15 per cent unallocated power would be left at the disposal of the Centre and would be apportioned among States.

As per the present norms, 15 per cent of the generation capacity is earmarked as unallocated power for all types of stations and would be placed at the disposal of the Centre for meeting exigencies of States. Of the 85 per cent, 12 per cent is supplied free of cost to the host State, 1 per cent reserved for Local Area Development Fund to the States or regions that have to bear the distress for setting up the project.

The remaining power is distributed among States in accordance with the pattern of Central Plan Assistance and also energy consumption during the past five years, giving equal weightage for both components.

Power generated at the stations established under the competitive bidding route is competitively procured by distribution licensees like the Kerala State Electricity Board. But Kerala heavily relies on the CGS allocation and any change in the allocation pattern would upset the power distribution plan . Once the guidelines come into force, the State would have to be contented with a meagre share from the 15 per cent unallocated pool of the Centre.


Return to frontpage             New allocation norms may deepen power crisis

PRINT   ∑   T  T  

State hosting generating station will reserve the right to 85% of power

Amended guidelines mooted by the Union Power Ministry for allocating power from the Central Generating Stations (CGS) in the non-competitive bidding route is set to intensify the power crisis in the State.

As per the draft guidelines forwarded for the governmentís approval, the State that hosts a generating station in the non-competitive bidding category would reserve the first right for availing itself of 85 per cent of the generated power. Stations coming under the competitive bidding route have been exempted from this norm.

The remaining 15 per cent unallocated power would be left at the disposal of the Centre and would be apportioned among States.

As per the present norms, 15 per cent of the generation capacity is earmarked as unallocated power for all types of stations and would be placed at the disposal of the Centre for meeting exigencies of States. Of the 85 per cent, 12 per cent is supplied free of cost to the host State, 1 per cent reserved for Local Area Development Fund to the States or regions that have to bear the distress for setting up the project.

The remaining power is distributed among States in accordance with the pattern of Central Plan Assistance and also energy consumption during the past five years, giving equal weightage for both components.

Power generated at the stations established under the competitive bidding route is competitively procured by distribution licensees like the Kerala State Electricity Board. But Kerala heavily relies on the CGS allocation and any change in the allocation pattern would upset the power distribution plan . Once the guidelines come into force, the State would have to be contented with a meagre share from the 15 per cent unallocated pool of the Centre.


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