KSEB plea for resumption of long-term power supply contracts rejected

The Hindu

15-06-2025

A Kerala State Electricity Board (KSEB) plea seeking orders for the resumption of power supply from the long-term Design, Build, Finance, Own and Operate (DBFOO) contracts has been rejected by the Kerala State Electricity Regulatory Commission (KSERC).
The KSEB wanted the commission to issue orders for the resumption of supply from Jhabua Power and Jindal India Thermal Power on the strength of an order issued by the commission on December 29, 2023.In a June 12 order, the commission noted that its 2023 order had been set aside by the Appellate Tribunal for Electricity (Aptel) and the Supreme Court.
The issue goes back to a May 10, 2023, decision of the commission declining approval for long-term power supply agreements totalling 465 MW from Jhabua Power, Jindal Power, and Jindal India Thermal Power citing irregularities.
Govt. intervenes
In view of a power crisis that year, the Kerala government, invoking Section 108 of the Electricity Act, issued a policy directive to the commission for the restoration of the contracts. The commission complied with the government requirement through its December 2023 order.
Subsequently, Jhabua Power and Jindal India Thermal Power challenged this order before Aptel. The KSEB observed that the third company, Jindal Power, had not challenged the order and hence was obliged to resume supply under the terms of the contract.
Later in 2024, Aptel and the Supreme Court upheld the original order issued by the commission in May 2023, declining approval for the contracts totalling 465 MW. It is in this context that the commission has now rejected the KSEB petition.