Kerala signs agreement to set up hydro-electric project

Thiruvananthapuram, June 7 (UNI) Kerala today signed an agreement with a private sector company for setting up a small hydro-electric project at Iruttukanam in Idukki district with an investment of Rs 15 crore.

The power purchasing agreement was signed between Kerala State Electricity Board (KSEB) Corporate Planning Chief Engineer C Vilson and P D Nair of Viyyattu Power Private Ltd, which was awarded the project on 'Build Operate Own and Transfer' mode.

The project, with a capacity to produce 10 million units a year, would be commissioned within two years. The company would sell power at the rate of Rs 2.40 per unit for a period of 30 years and thereafter hand over it to the state government.

Speaking on the occasion, State Electricity Minister A K Balan said the government would support all small hydro-electric projects and hydel tourism projects without affecting the environment.

He said the state would enter into an agreement with Orissa for the purchase of coal to produce 1,000 MW of electricity to meet the shortage.

UNI