Inspired by the success of the Mundra power project in Gujarat that attracted rock-bottom power tariff, the CPM-led Left Democratic Front in Kerala is exploring the idea of setting up a similar coal-based power project in the state. Kerala’s keenness to set up a coal-based project marks an important shift in policy. At present, the state is heavily dependent on hydro power stations which account for 70 per cent of existing capacity. The rest is powered by liquid fuels. Kerala has a total power capacity of around 2,650 MW.Confirming the plan to set up a coal-based power plant, Kerala’s Finance Minister Thomas Isaac told The Indian Express that two factors influenced the decision. The first was the success of the Mundra ultra mega power project which attracted a tariff of Rs 2.26/ unit from the Tatas. The second factor, he said, was the high cost of other fuels like naphtha and LNG.The LDF government has sought the National Thermal Power Corporation’s (NTPC) advice on the matter. This includes whether the coal should be imported, like in the case of the Mundra project, or can be sourced from within the country. Considering its coastline, Kerala is tilted more in favour of importing coal, but is open to sourcing domestic coal too. While neither the site nor the capacity of the plant have been decided, Isaac said power from the plant would be used only for Kerala. In the past, the state has stayed away from setting up coal-based thermal projects due to possible impact on the environment. Moreover, there are bottlenecks in transporting the vast amount of coal needed for firing a power plant in the state.At present, the only source of coal-based power is the state’s share from NTPC’s super thermal power station in Andhra Pradesh. Instead of transporting coal from Andhra, power is produced at the pit head and transmitted to Kerala.However, with the growing demand for power and the ever-increasing demand-supply gap, the state needs to find more avenues for generating power. While Kerala has hydel potential, the projects in the pipeline have a very small capacity. Moreover, hydel projects also have a long gestation period.
