Karnataka HC Favors of KPCL in Sharavathi Tender Dispute

April 30, 2024

The Karnataka High Court has dismissed an appeal filed by engineering giant Larsen & Toubro (L&T) against Karnataka Power Corporation Ltd (KPCL) regarding the tender process for the Rs 8,300 crore Sharavathi Pumped Storage Power Project. The court ruled in favor of KPCL, affirming the legitimacy of the tender process and KPCL’s authority to determine tender timelines.

KPCL initiated a 21-day tendering process for the Sharavathi Pumped Storage Power Project on February 2, 2024
L&T, which did not participate in the tender, raised objections alleging undue haste in the process
L&T argued that the 21-day period was unusually short and typically required at least 90 days

Significance of the Project

The Sharavathi Pumped Storage Power Project is part of KPCL’s efforts to address Karnataka’s electricity shortage
Karnataka experienced a peak demand of 16,950 MW in August 2023, significantly higher than 11,268 MW in August 2022
The project, with a capacity of 2,000 MW, aims to help mitigate the power crisis in the state

Karnataka’s Power Generation Plans

The state plans to procure electricity from neighboring states and establish power-swapping agreements
Karnataka aims to increase its power generation capacity to 60,000 MW within the next seven years, doubling the current capacity of 32,000 MW
Renewable energy sources are a key focus, with 63% of Karnataka’s power generation currently derived from renewable sources

Initiatives to Promote Solar Energy

The Union Ministry of New and Renewable Energy (MNRE) has proposed feeder-level solarization under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan scheme
Karnataka has made significant progress in decentralized solar power plant installations with MNRE’s support
The state government has increased the subsidy for solar pump sets in agriculture from 30% to 50%, covering up to 80% of the total cost

As Karnataka focuses on expanding its power generation capacity and promoting renewable energy sources, initiatives like this project and the adoption of solar energy in agriculture are expected to contribute to a more sustainable and energy-secure future for the state.

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