The Kayamkulam station of the National Thermal Power Corporation (NTPC) is facing the gravest crisis in its 17-year history. Considered an asset to Kerala earlier, the plant has been remaining idle for most part of the year. Unable to resolve the crisis sparked by rise in fuel cost at the naphtha-based plant, the government is exploring unconventional options, including shifting of the plant, in a bid to wriggle out of the trying situation.
The plant, also known as Rajiv Gandhi Combined Cycle Power project, has been facing poor demand arising out of the high cost of production. Rise in prices of naphtha, the fuel used in the plant, has been the main reason behind the unprofitable operations. The NTPC has already converted the machinery to receive natural gas for producing electricity, but the gas pipeline connectivity is posing a major hurdle.