Thiruvananthapuram, Nov 4 Keralam Chief Minister V D Satheesan on Wednesday defended the government’s decision to purchase electricity from a private power trading platform, saying the move would save Rs 2,232 crore for the state, and asserted that the transfer of the KSEB chairman was a routine administrative exercise unrelated to the power deal.
Addressing a press conference here after the weekly Cabinet meeting, Satheesan said the government had chosen the lower-priced option after examining the proposals received for power procurement.
The CM was replying to questions regarding the allegations raised by Leader of the Opposition Pinarayi Vijayan regarding the power deal and KSEB Chairman M G Rajamanickam’s transfer.
Satheesan said a proposal had been received to purchase electricity from Himachal Pradesh at Rs 14.50 per unit through the intermediary 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.
“The proposal from Himachal Pradesh was through an agency or intermediary, and the rate of Rs 14.50 per unit included its commission. Had we opted for that arrangement, the government would have incurred an additional liability of Rs 2,232 crore,” he said.
The chief minister said he had taken the final decision after examining the file forwarded by the electricity minister. The government was not in a position to bear the additional financial burden involved in procuring power at the higher rate, he added.
Pointing out that private companies had also supplied electricity during the previous government’s tenure, Satheesan said power had been purchased from GNA, Jindal and Adani, among other companies.
The present agreement with GNA was valid only until March 31, he said, adding that the government was exploring long-term arrangements with NTPC and other public sector undertakings.
“We hope to get electricity from NTPC-Sinnar at Rs 5.80 per unit. I recently met the NTPC chairman in New Delhi. We are trying to enter into a long-term power purchase agreement in collaboration with NTPC and other PSUs,” he said.
Rejecting allegations that Rajamanickam was transferred because of the power procurement decision, Satheesan said the government had the authority to transfer officials as part of routine administration.
A 2008 batch officer, Rajamanickam, who was serving as KSEB Chairman and Managing Director and Secretary, Power Department, has been transferred as Secretary, Local Self Government Department.
“It is a false allegation. Many officers have been transferred. It is the prerogative of the government. Even very senior officers have been shifted from one department to another,” he said.
Satheesan said the transfer of the KSEB chairman had no connection with the power purchase decision and was carried out as part of a broader administrative reshuffle.
Several senior officials, including Additional Chief Secretaries, had also been transferred, he said, adding that all prescribed procedures had been followed.
The Civil Services Board had met before the transfer decisions were taken, and there had been no complaints regarding the IAS transfers, Satheesan said.
Vijayan, in a statement, said on Tuesday that instead of addressing the power crisis through effective management and timely interventions, the government was entering into unjustifiable agreements that would burden the state financially.
He alleged that the government had deliberately delayed responding to an offer from a public sector undertaking in Himachal Pradesh to supply electricity, thereby paving the way for a deal with a private company.
The Opposition leader also raised allegations of irregularities in the KSEB and the transfer of senior officials, claiming that the moves were intended to facilitate financial corruption.
Officers who opposed the alleged irregularities were being transferred to push through controversial decisions, he alleged.
(PTI News)
