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EEFI questions cost and transparency of Kerala GNA power deal

The Electricity Employees’ Federation of India has challenged the legal basis and financial calculations of the proposed power arrangement.

The Electricity Employees’ Federation of India (EEFI) has raised concerns regarding the legal basis, cost calculations and disclosure process of the proposed GNA power deal in Kerala, according to Urban Acres.

EEFI convener for research and development M G Suresh Kumar has questioned Chief Minister V D Satheesan’s defence of the arrangement. Kumar has demanded the release of the full GNA file, including notes from former Kerala State Electricity Board (KSEB) chairman and managing director Rajamanickam.

The dispute involves competing claims over peak-hour electricity availability. Kumar stated that a KSEB chief engineer reported an arrangement with Himachal Pradesh could provide between 864 MW and 1,280 MW during peak hours, compared to 500 MW from the GNA offer.

Regarding costs, Kumar said KSEB estimated the Himachal Pradesh option at Rs 1,105 crore, potentially reaching Rs 1,281 crore with a Rs 14.50 per unit tariff. He contested the government's assertion that selecting the Himachal Pradesh option would result in a liability exceeding Rs 2,000 crore.

Kumar argued that the GNA deal might actually exceed Rs 2,000 crore once the cost of extra peak-hour purchases is included. He also cited a Kerala State Electricity Regulatory Commission assessment that he claims does not show the acute power crisis mentioned by the government.

The EEFI has also raised legal questions regarding the proposed Rs 8.63 per unit tariff. Kumar argued that Sections 62 and 63 of the Electricity Act require prices to be set via tender or regulatory commission approval.

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