Naphtha threat: Reliance power to be used despite rains

THIRUVANANTHAPURAM: A potential calamity has forced KSEB Limited to source more than three million units from the 165 MW BSES Kerala Power Limited (BKPL), wholly owned by Anil Ambani’s Reliance Infrastructure, and with whom KSEBL had refused to renew the power purchase agreement that had expired on October 31, 2015. KSEBL had not been sourcing power from BKPL for over two years. Non-utilisation but led to the dangerous accumulation of naphtha, a flammable oil containing various hydrocarbons, in the premises of the plant.

The High Court, after securing a report from the Ernakulam district collector, issued an order on April 4 directing BKPL to generate electricity to use up, in the interest of public safety, the 6879 metric tonnes of naphtha stored in its premises and 4450 MT stored in the premises of Indian Oil Corporation Limited. The order had been issued considering the fact that the generating unit of BKPL is a Major Accident Hazard (MAH) unit and the explosive license granted to BKPL will expire on December 31, 2017. The Court also observed that the possibility of human error, leading to a major disaster, could not be ruled out. It wanted the stock to be exhausted by July, 2017.

The most prudent way to use up the stock is to produce power. There were four options before KSEB: one, evacuate power from BKPL at unscheduled interchange (UI) rate, the low rate at which power is sourced from central stations; two, allow BKPL to sell power to private buyers within the state; three, grant open access so that BKPL power could be sold outside the state. The Electricity Regulatory Commission, in its latest order, has asked KSEBL to secure power from BKPL at UI rate.