Kerala is seeking Odisha’s support for its energy security. It is interested to buy power from Odisha and is also keen to set up a power plant in Odisha.
Kerala’s Additional Chief Secretary of Power Paul Antony held discussions in these regards with Odisha Chief Secretary Aditya Prasad Padhi and Energy Principal Secretary Rajesh Verma here on Tuesday.
As Kerala is facing power shortage, it is trying for both short-term and long-term planning to meet its requirement. Antony presented his State’s requirement to the Odisha Government. Kerala uses to buy power from Odisha during summer as it mostly depends on hydropower.
Now, Kerala wants set up a coal-based power plant to ensure its energy security. Its earlier move to establish a 1,000-MW plant in Odisha failed because the Union Ministry of Coal, which had allocated the Coal Block-Baitarani West in 2002 in favour of Odisha, Kerala and Gujarat, de-allocated it in 2012.
Baitarani West Coal Block has a 602-million-tonne reserve, and Kerala was hopeful of setting up a power plant to draw energy for it from Odisha. However due to the coal block’s de-allocation, Kerala is worried over uncertainty of fresh allocation of a new coal block in favour of the State.
Meanwhile, Gujarat has made it clear that it is no more interested for coal blocks to be jointly operated with other States. However, Kerala is eager to join hands with Odisha for making application for afresh allotment of a new coal block.
The Ministry of Coal is going to notify for allotment of coal blocks in September 2016, and after that both States are likely to join hands for applying a coal block.
Earlier, Kerala had entered into joint venture (JV) with Odisha for setting up of the power plant, but with de-allocation of coal block such an arrangement will now not hold good, feel insiders.
So, it seems Kerala would have to wait for some more time to plan for its power plant in Odisha as allocation of new coal blocks would take time, said officials here.
However, as Odisha is going to be power-surplus by 2018, Kerala would be able to purchase power from it on a long-term basis, said the officials.Accordingly, Antony held talks with Padhi and Verma on the proposal.
More rounds of discussions are on the cards, said sources in the Department of Energy here.