Kerala chooses GNA power deal to save ₹2,232 crore, says CM
Chief Minister V.D. Satheesan defended the decision to procure electricity from a private company over a Himachal Pradesh offer.
Chief Minister V.D. Satheesan said on Wednesday that the Kerala government chose to procure electricity from GNA Energy OTC instead of an offer from the Himachal Pradesh government to prevent an extra financial liability of ₹2,232 crore.
According to The Hindu, Satheesan explained that the Himachal Pradesh proposal, made via PTC India Ltd, was priced at ₹14.50 per unit. In contrast, GNA quoted prices of ₹8.63 and ₹8.90 per unit for round-the-clock supply.
The Chief Minister noted that the Himachal Pradesh deal would have provided 353 million units during peak hours, while the GNA agreement would provide 453 million units. He stated that the decision was based on cost and power availability.
Satheesan also addressed allegations from the Opposition CPI(M)-led LDF that the transfer of KSEB chairman and managing director M.G. Rajamanickam was connected to these power purchases. He dismissed the claim, describing the transfer as a routine administrative procedure part of a broader bureaucratic reshuffle.
The Chief Minister further stated that the previous LDF government had also purchased electricity from private players, including GNA, Jindal, and Adani. He maintained that the KSEB continues to source a major portion of its power from private companies.