The state government is allegedly mounting pressure on Kerala State Electricity Board Limited (KSEB) to purchase power from a Kochi-based company at exorbitant rates.
Official sources said that the board´s power purchase agreement with Bombay Suburban Electric Supply Kerala Power Limited (BKPL), a subsidiary of Reliance Energy Limited, expires soon. Reliance has 86.32 per cent shares in the company and the remaining 13.68 stakes are being held by the Kerala State Industrial Development Corporation (KSIDC).
The company is now insisting on striking a ten-year agreement with a higher fixed cost. It also proposes to increase the cost per unit by `1.90. Against the BKPL tariff ranging between `7 and `13 per unit, the board could evacuate power from alternative sources at `4 to `5 per unit, sources said.
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