Keralam to get low-cost electricity at ₹5.18 per unit from Sinnar thermal project
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims·
Inter-state power purchase agreements: a GS3 case study on energy security and tariff stabilization.
Why in news
Keralam Chief Minister V.D. Satheesan announced a power purchase agreement (PPA) to procure low-cost electricity at ₹5.18 per unit from the Sinnar thermal power project in Maharashtra.
Background
The Sinnar thermal power project is a joint venture between NTPC Ltd and MAHAGENCO located in Nashik, Maharashtra. It is slated to provide 540 MW of power to Keralam, with a target to potentially increase supply to 1,000 MW.
Facts for Prelims
- FactThe agreed electricity supply cost from the Sinnar project is ₹5.18 per unit.
- BodyThe Sinnar thermal power project is a joint venture between NTPC Ltd and MAHAGENCO.
- PlaceThe Sinnar thermal power project is located in Nashik, Maharashtra.
- FactThe initial power allocation for Keralam is 540 MW, with a long-term duration of 25 years.
- FactThe expected commencement of power supply from the project has been moved forward to March.
Prelims practice question
With reference to the Sinnar thermal power project, consider the following statements:
- The agreed electricity supply cost is ₹5.18 per unit.
- The project is a joint venture between NTPC Ltd and MAHAGENCO.
- The project is located in the state of Kerala.
Which of the statements given above is/are correct?
- (a)1 only
- (b)1 and 2 only
- (c)2 and 3 only
- (d)1, 2 and 3
Show answer
Answer: (b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The project is located in Nashik, Maharashtra.
For Mains
Q. Discuss the significance of inter-state power purchase agreements in ensuring energy security and stabilizing electricity tariffs for power-deficit states in India.
Dimensions to cover in your answer
- Inter-state cooperation: Leveraging surplus generation from joint ventures to stabilize regional power grids
- Fiscal impact: Reducing per-unit costs through long-term PPAs to lower industrial and domestic electricity tariffs
- Infrastructure synergy: Utilizing Maharashtra's coal-based capacity to meet Keralam's energy demands
Keywords: Power Purchase Agreement · Energy Security · Inter-state Trade · NTPC · MAHAGENCO · Electricity Tariff
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