Brahmapuram can turn into financial burden for Kerala

KOCHI: If the request for proposal (RFP) of the much-hyped Brahmapuram solid waste treatment plant is approved, it would be a huge financial burden on the state government in the long run.

There are many grey areas in the financial bid submitted by GJ Nature Care, the Indian partner of the UK-based Biomass En-ergy, the firm selected for implementing the project.

The company will set up the plant at a cost of Rs 600 crore and run it for 15 years on a BOT basis.

As per the initial feasibility study, 500 units of electricity can be generated from one tonne of garbage.

With a capacity of treating 300 tonnes of waste, the plant can generate 5 to 6 MW of electricity (150,000 units) per day.

As per financial bid submitted by the company, the power has to be purchased by the state government or the local body.

While the normal power tariff is Rs 3, the company will sell it for Rs 15 per unit excluding taxes and other charges.

Though KSEB has agreed to buy electricity, it won’t pay more than the normal rates.

To make the plant a reality, the state government has agreed to compensate the extra amount which will turn into a huge financial burden.

On an average, the government will have to pay '12 a unit which means it has to shell out an average Rs 18,00, 000 each day.

Kochi Corporation secretary V.R. Raju told DC that the RFP had been submitted for the government’s approval. Once it gets cleared, the civic body can sign the agreement with the company.

“However, certain components in the financial bid like the tariff at which the power will be sold have to be finalised by the state government,” he said.

Meanwhile, KSEB chairman M. Sivasankar told DC that he had sent a letter expressing interest to buy power from the Brahmapuram plant.

“The Board can buy power at the rate fixed by electricity regulatory commission. When the project is ready, they can submit a request to the Commission,” he said.