CPI(M) leader alleges electricity deal with private firm will cause losses
P Rajeev claimed Chief Minister V D Satheesan concealed facts regarding power procurement costs.
Senior CPI(M) leader P Rajeev alleged on Thursday that purchasing electricity through a private trading platform would result in significant financial losses for Kerala. According to the Hindustan Times, Rajeev accused Chief Minister V D Satheesan of hiding facts regarding the cost-effectiveness of the deal compared to buying power from Himachal Pradesh.
The Chief Minister had stated during a Wednesday press conference that using a private platform could result in savings of Rs 2,232 crore for the state. Satheesan noted that while Power Trading Corporation India Ltd offered power from Himachal Pradesh at Rs 14.50 per unit, GNA Energy offered rates of Rs 8.63 and Rs 8.90 per unit.
Rajeev, however, described these claims as lies. He argued that the state would have to buy power from GNA Energy for the entire duration, including non-peak hours when the state already produces excess electricity.
The leader contended that the state would have to surrender its excess power or sell it at low rates, causing losses. He cited a letter reportedly sent by former Kerala State Electricity Board (KSEB) chairman M G Rajamanickam, suggesting that buying from Himachal Pradesh during peak hours could still save the state around Rs 250 crore.
Rajeev also questioned why the government is pursuing an agreement without a tender and whether the regulatory commission has reviewed the proposal. He suggested it would be more profitable to buy electricity from the power exchange based on specific requirements.