Kerala chooses GNA power deal to save Rs 2,232 crore, says CM
Chief Minister V.D. Satheesan defended the decision to procure electricity from a private company over an offer from Himachal Pradesh.
Chief Minister V.D. Satheesan on Wednesday defended the decision of the Congress-led UDF government to procure electricity from private company GNA Energy OTC instead of the Himachal Pradesh government. According to reports by South First, Mathrubhumi and The Hindu, the move is intended to avoid an additional financial liability of Rs 2,232 crore for the state.
Speaking at a press conference in Thiruvananthapuram after a Cabinet meeting, Satheesan said the government had two proposals. The Himachal Pradesh offer, made via PTC India Ltd, was priced at Rs 14.50 per unit, while GNA quoted Rs 8.63 and Rs 8.90 per unit. He clarified that the GNA deal is routed through the Power Trading Corporation and is not a direct transaction with the government.
The Chief Minister noted that the GNA agreement would provide 453 million units during peak hours, compared to 353 million units from Himachal Pradesh. He stated that the decision was based on cost and power availability, questioning why the state should buy from another state government at a higher price.
Satheesan also rejected allegations from the CPI(M)-led LDF Opposition that the removal of Kerala State Electricity Board (KSEB) chairman M.G. Rajamanickam was linked to the power deal. He described the transfer of the chairman and several senior officials as a routine administrative reshuffle.
The Chief Minister further stated that the previous LDF government had also purchased electricity from private companies, including GNA, Jindal, and Adani. He maintained that KSEB continues to source a major share of its power from private players.