KSEB floats fresh 500 MW coal-linkage tender under SHAKTI policy
KSEB has invited bids for 500 MW of round-the-clock power for 25 years under the SHAKTI policy, with supply targeted from June 2027.
Kerala State Electricity Board (KSEB) has renewed its effort to secure long-term electricity through the coal linkage allotted to Kerala, floating a request for qualification (RfQ) for 500 megawatts (MW) of round-the-clock (RTC) supply over 25 years.
The procurement is being pursued under the Union Coal Ministry's Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India, specifically its B(iv) provision. The RfQ was issued on September 23, and the utility is aiming for supply to commence from June 2, 2027.
The proposed agreement would be structured on a Design, Build, Finance, Own and Operate (DBFOO) basis. Under the plan, KSEB would procure power on a long-term basis for 25 years through a public-private partnership, with fuel sourced from Coal India or one of its subsidiaries under the SHAKTI framework.
The policy allows states and distribution companies such as KSEB to conduct tariff-based competitive bidding for long-term and medium-term power procurement in line with Union Power Ministry norms, and to recommend that the coal linkage be granted to the successful bidder.
According to the RfQ schedule, pre-qualified applicants are to be announced on December 3, 2026, and bids opened on January 4, 2027. KSEB expects to sign the power sale agreement on March 5, 2027. A pre-application conference is likely to be held in the last week of October this year.
The fresh attempt follows the failure of an earlier effort to tap the coal linkage. In June 2025, the State Electricity Regulatory Commission approved a tender for 500 MW over 25 years under the B(iv) SHAKTI policy. When bids were opened in October 2025, the rates quoted by bidders were on the higher side. Negotiations did not bring the price down sufficiently, and the tender was annulled in February 2026.
The renewed procurement comes amid a monsoon-season power crisis in Kerala that has highlighted vulnerabilities in a system heavily reliant on electricity brought in from other parts of the country. In recent weeks, KSEB imposed evening-hour power curbs after supply fell short of meeting peak demand.