The Cabinet on Friday gave its approval for extending the contract with the NTPC Kayamkulam power plant for a further three years.
The decision was taken in the context of the 25-year contractual period coming to an end.
The conditions for the renewal include a clause that the memorandum of understanding and the power purchase agreement would stand cancelled if the 180 MW supply from the NTPC Talcher unit is stopped, Power Department sources said. Two, a 2000 MWh battery energy storage system (BESS) has to be established at Kayamkulam.
The NTPC should either establish it on its own or as a joint venture with the Kerala State Electricity Board (KSEB).
The KSEB should consider floating solar projects through a joint venture with the NTPC. The KSEB and the NTPC should also carry out a study on the feasibility of converting the NTPC Kayamkulam plant to run on peat gas.
Published – February 13, 2026 11:09 pm IST
