Thiruvananthapuram, Nov 4 Keralam Chief Minister V D Satheesan on Wednesday defended the government’s decision to procure electricity through a private trading platform, saying it would save the state Rs 2,232 crore, and denied that the transfer of the KSEB chairman was linked to the deal.
Addressing a press conference here, Satheesan said the government had opted for a lower-priced proposal after examining two power procurement offers received by the state.
He said one proposal was to procure electricity from Himachal Pradesh at Rs 14.50 per unit through Power Trading Corporation (PTC) India Ltd, while GNA Energy had offered power at Rs 8.63 and Rs 8.90 per unit.
GNA Energy is a digital Over The Counter (OTC) platform that brings together potential buyers and sellers of electricity.
He said the Himachal Pradesh proposal involved an intermediary whose trading commission was included in the quoted rate, while GNA Energy operated as an open trading platform.
“Had we opted for the Himachal proposal, the state would have incurred an additional financial burden of around Rs 2,232 crore,” Satheesan said, adding that the decision was taken after examining the file forwarded by the electricity minister.
Comparing the two proposals, he said the state would receive 843 million units (MU) of electricity from Himachal Pradesh till March-end (2027), against 1,812 MU from GNA. During peak hours, between 6 pm and midnight, GNA would supply 453 MU, compared to 353 MU under the Himachal proposal.
Rejecting reports that the GNA deal would impose an additional burden of Rs 722 crore, Satheesan said the Keralam State Electricity Board (KSEB) report had estimated an additional liability of Rs 722.91 crore up to December and Rs 1,510.43 crore up to May 2027 if electricity was procured through the Himachal proposal at rates exceeding the regulatory ceiling.
He also hit out at the Opposition for criticising the decision to procure power from a private entity, pointing out that the previous LDF government had also purchased electricity from GNA, Jindal, Adani and other private companies.
The present agreement with GNA would remain valid until March 31, 2027, he said, adding that the government was exploring long-term power procurement arrangements with NTPC and other public sector undertakings.
Satheesan said he had held discussions with the NTPC chairman in New Delhi and was hopeful of securing around 1,000 MW of electricity at Rs 5.18 per unit. The government was also working towards strengthening renewable energy generation and battery storage facilities, with a target of producing 5,000-6,000 MW in the next two to three years, he added.
Rejecting allegations that KSEB Chairman M G Rajamanickam was transferred for opposing the purchase of electricity at higher rates, Satheesan said the transfer was part of routine administrative decisions and had no connection with the power deal.
“The government has the prerogative to transfer officials. Even senior officers have been shifted from one department to another,” he said, adding that the Civil Services Board had met and all prescribed procedures were followed.
Leader of the Opposition Pinarayi Vijayan had alleged that the government was entering into unjustifiable power purchase agreements that would impose a financial burden on the state instead of addressing the electricity crisis through effective management.
He had also alleged that the government deliberately delayed responding to an offer from a public sector undertaking in Himachal Pradesh to facilitate a deal with a private company.
(PTI News)
