Kerala power deal could cost state ₹727 crore, alleges Vijayan
Opposition leader Pinarayi Vijayan has questioned the government's decision to procure 500 MW of electricity from a private supplier.
Opposition leader Pinarayi Vijayan has alleged that a proposed 500 MW power purchase agreement could result in an additional ₹727 crore burden on the Kerala exchequer, according to a report by Urban Acres.
Vijayan claimed the state government intends to buy electricity from a private firm at a rate of ₹8.63 per unit. He stated this is being done without the necessary approval from the regulatory commission and questioned why power is being bought during daytime hours when demand is low.
The opposition leader alleged that a public sector power company in Himachal Pradesh had offered electricity, but the government delayed its response, allowing a private company to secure the deal instead. He further claimed that KSEB officials who opposed the arrangement were transferred and that the chief minister’s office pressured officials to proceed despite objections from the power minister and the board.
Vijayan alleged that the current power crisis is being used to justify a transaction that would lead to significant losses for the state. He noted that the government had previously indicated it would procure extra electricity from public sector companies.
The opposition leader has demanded the immediate publication of all files related to the agreement, including any dissent notes submitted by Kerala State Electricity Board (KSEB) officials. These documents would clarify the basis for the tariff and the reasons for choosing the private supplier.