The Kerala State Electricity Regulatory Commission has rejected a petition filed by KINESCO Power and Utilities Private Limited seeking permission to distribute electricity within the KINFRA Industrial Park at Perumbavoor in Ernakulam district. The Commission directed Kerala State Electricity Board Limited (KSEB) to supply power directly to the industrial park in coordination with the Kerala Industrial Infrastructure Development Corporation (KINFRA), ensuring 24×7 electricity availability.
KINESCO, a subsidiary of KINFRA, had filed the petition in December 2025 under the Electricity Act, 2003, and applicable state regulations. It sought an additional distribution licence for around 30 acres forming Phase-1 of the proposed 68-acre industrial park.
The site, earlier owned by Travancore Rayons Limited, is being developed for high-technology industries, including consumer electronics, artificial intelligence, robotics, research and development, and food processing. KINFRA has allotted 28 acres of Phase-1 to Kaynes Technology India Limited for an electronic system design and manufacturing facility, while the remaining two acres are planned for a waste treatment plant.
Kaynes Technology is expected to invest around ₹500 crore in a 7.25 lakh square foot facility. The project will initially require about 2,000 kVA of power. The company plans to construct a dedicated 11 kV underground cable feeder from KSEB’s nearby 110 kV Rayonpuram substation. It will also develop the internal distribution infrastructure at its own cost.
KSEB opposed KINESCO’s petition, stating that a separate distribution license for serving a single consumer would be unnecessary and economically inefficient. The utility pointed out that the Rayonpuram substation is operating at only around 45–57% of its 41 MVA transformer capacity. It said sufficient capacity is available to meet the park’s initial demand and future requirements of up to 5,000 kVA.
KSEB also argued that appointing an intermediary distributor would create additional administrative, operation and maintenance costs without providing any corresponding benefit to consumers.
The Commission agreed with KSEB’s position. It observed that since the main industrial consumer was already developing its dedicated feeder and internal distribution network at its own expense, KINESCO had not demonstrated any technical or financial advantage from becoming an intermediary distributor.
The Commission further noted that purchasing electricity from the state grid and reselling it through another licensee could introduce unnecessary operational costs and potentially affect tariffs. It therefore concluded that direct supply by KSEB was the more efficient arrangement.
The Commission also clarified that the state government’s declaration of the area as an industrial zone under single-window clearance provisions does not automatically grant electricity distribution rights. Such licensing matters fall within the regulatory jurisdiction of the State Electricity Regulatory Commission under the Electricity Act, 2003.
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