Kerala: KSEB's unplanned, unapproved power purchase agreement likely to cost loss of Rs 200 crore
July 17, 2025
  • Read Ecopy
  • Circulation
  • Advertise
  • Careers
  • About Us
  • Contact Us
Organiser
  • ‌
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Europe
    • North America
    • South America
    • Africa
    • Australia
    • Global Commons
  • Editorial
  • International
  • Opinion
  • Op Sindoor
  • More
    • Analysis
    • Sports
    • Defence
    • RSS in News
    • Politics
    • Business
    • Economy
    • Culture
    • Special Report
    • Sci & Tech
    • Entertainment
    • G20
    • Azadi Ka Amrit Mahotsav
    • Vocal4Local
    • Web Stories
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Law
    • Health
    • Obituary
    • Podcast
MAGAZINE
  • ‌
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Europe
    • North America
    • South America
    • Africa
    • Australia
    • Global Commons
  • Editorial
  • International
  • Opinion
  • Op Sindoor
  • More
    • Analysis
    • Sports
    • Defence
    • RSS in News
    • Politics
    • Business
    • Economy
    • Culture
    • Special Report
    • Sci & Tech
    • Entertainment
    • G20
    • Azadi Ka Amrit Mahotsav
    • Vocal4Local
    • Web Stories
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Law
    • Health
    • Obituary
    • Podcast
Organiser
  • Home
  • Bharat
  • World
  • Operation Sindoor
  • Editorial
  • Analysis
  • Opinion
  • Culture
  • Defence
  • International Edition
  • RSS in News
  • Magazine
  • Read Ecopy
Home Bharat

Kerala: KSEB’s unplanned, unapproved power purchase agreement likely to cost loss of Rs 200 crore

Kerala's recent power purchase agreement by Kerala State Electricity Board, lacking in planning and approval, anticipates a staggering loss of Rs 200 crore

by T Satisan
May 24, 2024, 04:15 pm IST
in Bharat, Kerala
Representative image

Representative image

FacebookTwitterWhatsAppTelegramEmail

According to reports from mainstream media, the power purchase deal made by the Kerala State Electricity Board (KSEB) during the summer, without necessary planning or permission from the Regulatory Commission, is placing a heavy fiscal burden on the state. The estimated loss is Rs 4 crore every day, expected to reach Rs 200 crore by the end of the contract, which will ultimately be passed on to consumers through electricity bills. The purchase of one crore units per day began on May 12 at a rate of Rs 9.60, resulting in a daily bill of Rs 10 crore. Despite heavy rainfall reducing power consumption, the state is obligated to continue purchasing power at this rate until June 30 as per the contractual agreement. Nearly 50 lakh units that the state used to acquire from central stations at rates of Rs 4 to 5 are now being surrendered without consumption, incurring a fixed cost whether consumed or not, thus contributing to the Rs 4 crore loss.

Organiser E Exit poll Lok Sabha Elections 2024

It appears that KSEB did not have any plans to face the excess power consumption during summer. An average excess of 3 crore units per day was consumed due to the heat wave.

KSEB was thrown into a state of panic. At the same time, they did not want to regulate consumption. Therefore, KSEB entered into a contract to buy power from the spot market at the rate of Rs 9.60 per unit. However, reports suggest that the rate will increase to Rs 10 when the power reaches the state. Since the spot market price is high, power is usually purchased only when necessary. But, KSEB entered into a contract with validity until June 30. Therefore, they are bound to purchase until then.

Kerala typically experiences abundant rainfall in June. Still, such a warranty is extraordinary. Reports suggest that the contract was executed with the verbal nod of the Government. The regulatory Commission is expected to be informed prior to entering into power purchase contracts. If a purchase is done without permission, it should be communicated to the Commission later and get the permission. But, reports suggest that the Commission was not informed about this particular contract.

Also Read: Nandigram Violence: Female BJP worker allegedly killed by TMC supporters in post poll violence; protest erupts

This heavy loss of Rs 200 cr is an additional burden on the power consumers as the Government struggles hard to pay salaries and pensions. Welfare Pensions for old people have been irregular for the last several months. The heavy summer rains hit the entire state, causing losses worth crores of rupees. The CPM-led Left Democratic Front regime, with CPM Polit Bureau member Pinarayi Vijayan as the Chief Minister, has been blaming the Union Government for all fiscal issues the state faces. However, Union Finance Minister Nirmala Sitaraman has proved with the support of facts and figures that it is due to the wrong fiscal policies and luxurious expenses of the state Government.

 

 

 

Topics: keralaKerala State Electricity BoardKSEBKerala CM Pinarayi Vijayan
Share37TweetSendShareSend
✮ Subscribe Organiser YouTube Channel. ✮
✮ Join Organiser's WhatsApp channel for Nationalist views beyond the news. ✮
Previous News

SC declines to direct ECI to publish data of votes polled per booth

Next News

Kanhaiya Kumar eclipses prospects for AAP and Congress in Delhi

Related News

Akbar Ali

Kerala: Love jihad, narcotic trap & sex racket run by Akbar Ali busted in Ernakulam; Girls lured, drugged & enslaved

Goa Governor P. S. Sreedharan Pillai inaugurates the Balagokulam Uttar Kerala State Conference online

Kerala: Goa Governor urges building a generation of strength and clarity at Balagokulam’s Golden Jubilee celebrations

The memorandum being submitted to the Governor by ABVP Kerala State Secretary E.U. Eswaraprasad.

Kerala: ABVP urges Governor to reject university bill, slams left govt for undermining academic autonomy & control

Kerala HC slams trivialisation of Bharat Mata symbolism; No relief for registrar in governor row

Kerala HC: Calling Bharat Mata a woman with flag ‘unfortunate’; No stay on suspension of registrar over governor row

Kerala is witnessing widespread protests across the state following the accident at Kottayam Medical College and the death of a woman

Kerala: CM Vijayan flies to US for treatment amid hospital collapse, exposing gaps in number one healthcare claim

Stranded US-made F-35 Jet becomes star of Kerala tourism

Kerala: Stranded US-made F-35 Jet becomes star of state tourism, Milma dairy & local brand ads; Airlift soon

Load More

Comments

The comments posted here/below/in the given space are not on behalf of Organiser. The person posting the comment will be in sole ownership of its responsibility. According to the central government's IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.

Latest News

Representative image

Uttarakhand: Dismantling leftist agenda, state govt calls on NCERT to introduce Bhagavad Gita & Ramayana

Representative image

Kerala Welcomes Ramayana Masam: A month of devotion, reflection, and Mandir traditions

Karnataka: Hindu Man alleges forced conversion to Islam by Muslim wife Tahseen Hosamani in Gadag

Representative Image, Inset- Maoists' banner

Chhattisgarh: Maoists regrouping in smaller units, blending with locals to avoid detection amid intensified campaign

Baloch rebels launch devastating ambush on military bus in Kalat: Several Pakistani soldiers killed, media barred

Dhirendra Shastri of Bageshwar Dham recited Hanuman Chalisa for the first time in the Parliament of London. (X)

Hanuman Chalisa echoes in British Parliament for the first time during Dhirendra Shastri’s historic visit

Representative image

CATS warrior UCAV nears takeoff: India set to test indigenous combat drone in 2026

Bihar CM Nitish Kumar, Image Credit- Firstspot

Bihar: CM Nitish Kumar announces free electricity for up to 125 units

Several MNS workers protest against Nagpur bank amid row over Hindi language in the state. (X)

Marathi vs Hindi Row Escalates: MNS workers storm Nagpur Bank after FIR in Marathi rejected for insurance claim

Violence in Bangladesh, 4 killed in firing as clashes erupt during NCP rally in Sheikh Hasina’s hometown

Gopalganj Burns: Bangladesh army opens fire during NCP rally, Hindu activist Deepto Saha shot dead

  • Privacy
  • Terms
  • Cookie Policy
  • Refund and Cancellation
  • Delivery and Shipping

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies

  • Home
  • Search Organiser
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Africa
    • North America
    • South America
    • Europe
    • Australia
    • Global Commons
  • Editorial
  • Operation Sindoor
  • Opinion
  • Analysis
  • Defence
  • Culture
  • Sports
  • Business
  • RSS in News
  • Entertainment
  • More ..
    • Sci & Tech
    • Vocal4Local
    • Special Report
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Health
    • Politics
    • Law
    • Economy
    • Obituary
    • Podcast
  • Subscribe Magazine
  • Read Ecopy
  • Advertise
  • Circulation
  • Careers
  • About Us
  • Contact Us
  • Policies & Terms
    • Privacy Policy
    • Cookie Policy
    • Refund and Cancellation
    • Terms of Use

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies