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Government of Karnataka accorded approval in April, 2007 for setting up of a Special Purpose Vehicle (SPV) viz., Power Company of Karnataka Limited (PCKL) to supplement the efforts of KPCL in capacity addition. PCKL was incorporated on 20th August, 2007 under the Companies Act, 1956 with an initial authorized capital of Rs. 5 (Five) crore and commenced its business operations with effect from 16th October, 2007. Each of the 5 ESCOMs have invested a sum of ` One crore each in PCKL which includes Rs 1(One) lakh towards Equity Share Capital and Rs. 99 (Ninety Nine) lakh towards seed money.


PCKL is responsible for capacity addition by way of setting up of new power projects through bidding process, under Case-II bidding guidelines issued by Ministry of Power, GOI and long term procurement of power under Case-I bidding guidelines of MoP, GoI. In order to bridge the short term demand and supply gap, PCKL has been procuring power on behalf of the ESCOMs from various sources including purchase of power through Energy Exchange, Banking (SWAP) as well bilateral transactions. PCKL also co-ordinates with other States and Central Government agencies on power related issues as well as through the forum of SRPC( Southern Regional power Committee).


Activities :
• To act as facilitator for
a. Land acquisition through Revenue Department / KIADB
b. Allocation of water from the Water Resource Department
c. Allocation of fuel linkages/coal blocks from MoP and MoC, GoI
d. Arranging Environment Impact Assessment, Pre-Feasibility Report and Detailed project reports through consultant / experts
e. Power evacuation system pertaining to projects through Case.2 Competitive Bidding Route.


• Negotiations with power Traders/Generators for short term procurement and preparation of PPAs on behalf of the ESCOMs.
• Forecasting energy availability and demand forecasting on behalf of the ESCOMs.
• Preparation/ Scrutiny of Power Purchase Agreements of Conventional Power Plants being developed by IPPs and Ultra Mega Power Projects by Central Government undertakings, to ensure compliance with technical and commercial parameters.
• Apportionment of cost of power purchased among the ESCOMs and accounting of energy exported/imported from various sources including barter arrangements and bilateral exchanges.
• Pre & post PPA issues relating to IPP Projects, MOU projects and Joint Venture projects.
• Representing the ESCOMs in Southern Regional Power Committee( SRPC).
• Verification of Regional Energy Accounting claims and apportionment among the ESCOMs.
• Preparation of documents and other related preliminary activities for procurement of power under Competitive bidding.
• Procuring power and maintenance of Indian Energy Exchange and Power Exchange transactions on behalf of the ESCOMs.
• Verification and scrutiny of short term power procurement bills & UPCL energy charges bills.
• Invitation of tenders for procuring power on short term and medium term basis.