Kerala CM defends power procurement policy to save Rs 2,232 crore
Chief Minister VD Satheesan stated that choosing a private trading platform over a Himachal Pradesh deal avoids a heavy financial burden.
Chief Minister VD Satheesan on Wednesday defended the Kerala government's decision to procure electricity through a private trading platform, according to The New Indian Express and ThePrint. He stated that the choice was made to protect the state from a significant financial liability.
Satheesan explained that the government compared two proposals to meet power demands. One option involved buying electricity from Himachal Pradesh through PTC India Limited at Rs 14.50 per unit, while the General Network Access (GNA) platform offered rates of Rs 8.63 and Rs 8.90 per unit. The Chief Minister said the GNA route would save the treasury Rs 2,232 crore compared to the Himachal Pradesh proposal.
The Chief Minister noted that the GNA arrangement provides 453 MW of power during peak hours from 6 pm to midnight, while the Himachal proposal offered 353 MW. He also rejected claims of a Rs 722 crore loss, stating that the Himachal option would have caused liabilities of Rs 722.91 crore up to December and Rs 1,510.43 crore up to May 2027.
Addressing the transfer of Kerala State Electricity Board (KSEB) Chairman MG Rajamanickam, Satheesan denied it was linked to the power deal. He described the move as a routine administrative reshuffle following a meeting of the Civil Services Board.
The Chief Minister added that the government is looking into long-term arrangements with the National Thermal Power Corporation (NTPC) and aims to produce 5,000-6,000 MW of renewable energy in the next two to three years.