Low-cost power: Deal with Maharashtra’s Sinnar project to be inked soon, says Keralam CM

Thiruvananthapuram—Kerala Chief Minister V.D. Satheesan announced on Wednesday that a power purchase agreement (PPA) is imminent for the low-cost electricity supply from the Sinnar thermal power project in Maharashtra. The Chief Minister mentioned the agreed price of ₹5.18 per unit at a post-Cabinet press briefing. Initially, Kerala anticipated starting the supply from Sinnar in January 2027; however, Mr. Satheesan now expects it to begin in March.

In a statement, Satheesan clarified that the Kerala State Electricity Board (KSEB) had never entered into a power purchase agreement with GNA and expressed uncertainty about whether KSEB misled him or not regarding the agreement. The KSEB had previously informed the State Electricity Regulatory Commission that NTPC Ltd, a joint venture partner in the Sinnar project, had committed to supplying 540 MW of electricity.

Sinnar thermal power project, situated in Sinnar, Nashik, is a collaboration between NTPC Ltd and MAHAGENCO, a Maharashtra power generation utility.

Recently, Satheesan met with the chairperson of NTPC Ltd during a visit to New Delhi. The Kerala State Electricity Regulatory Commission has urged KSEB to execute the PPA with NTPC Ltd for the Sinnar plant's supply. The commission directed KSEB to finalize the PPA "as soon as possible to ensure power supply commences immediately upon achieving Commercial Operation Date (CoD) of the first two units."

In the meantime, MSEDCL, the Maharashtra State Electricity Distribution Company Limited, does not require additional coal-based generation capacity in the near future. Consequently, Sinnar is offering 540 MW of power to Kerala from its first two units, expected to be commissioned by February 2027. Initially, KSEB was projected to receive 270 MW round-the-clock (RTC) power from January 2027 and an additional 270 MW (total capacity allocation of 540MW) from March 2027 on a long-term basis for a period of 25 years.