Sounding the death knell for Kannur

Vol 3, PW 19 (13 Oct 99) News in Brief
     

The Kerala State Electricity Board (KSEB) has condemned the ill-fated 513-MW Kannur power project as unviable.

"The company in the present configuration is not capable of investing the entire equity required for the project", reveals an internal KSEB note. The memo was prepared in response to a request from the Central Electricity Authority (CEA) to assess the financial capability of the project promoter, the KPP Nambiar Group.

The note adds that only the backing of a partner with strong financial backing can help the Nambiar group realise the project. In July this year, Enron announced its withdrawal from the Kannur Power Project following pressure on the Nambiars by the local Communist-led administration.

Enron had earlier agreed to take 74% equity. Kannur has still not received techno-economic clearance from the CEA.