Kerala to Finalize Power Purchase Agreement for Sinnar Project Soon
Kerala's Chief Minister announces imminent signing of a low-cost electricity deal from Maharashtra's Sinnar thermal power project.
Kerala will secure electricity at ₹5.18 per unit from Sinnar.
Power supply expected to start by March 2027, ahead of previous estimates.
KSEB aims to increase supply capacity to 1,000 MW from the Sinnar project.
Kerala's Chief Minister V.D. Satheesan announced on Wednesday that a power purchase agreement (PPA) will soon be finalized for the procurement of low-cost electricity from the Sinnar thermal power project in Maharashtra. This agreement is expected to provide electricity at a rate of ₹5.18 per unit, which is a significant development for the state's energy sector.
The Sinnar project, located in Nashik, is a collaboration between NTPC Ltd and MAHAGENCO. Initially, the state anticipated that power supply from this project would commence in January 2027. However, the timeline has been accelerated, with expectations now set for March 2027. This shift reflects ongoing discussions and negotiations between Kerala officials and NTPC representatives.
The Kerala State Electricity Board (KSEB) has been informed by the state’s electricity regulatory commission about the potential supply of 540 MW from the Sinnar project. The Chief Minister indicated that discussions with NTPC's chairperson during a recent visit to New Delhi played a crucial role in expediting this agreement. The KSEB is under directive to execute the PPA promptly to ensure that power supply begins as soon as the first two units achieve their commercial operation date.
The Sinnar thermal power plant has offered 540 MW of power to Kerala, with the first two units expected to be operational by February 2027. The KSEB initially planned to receive 270 MW of round-the-clock power starting in January 2027, with an additional 270 MW to follow in March 2027, ensuring a long-term supply for 25 years. This development is particularly timely as Maharashtra's electricity distribution company does not require additional coal-based generation capacity in the near term.
Looking ahead, the KSEB aims to increase the total supply capacity from the Sinnar project to 1,000 MW, which would significantly bolster Kerala's energy resources. The finalization of the PPA is a key step in achieving this goal, and stakeholders are optimistic about the benefits it will bring to the state's electricity supply landscape.
