Thiruvananthapuram, Sep 12 (IANS): Kerala’s worsening power crisis, marked by recurring night-time power cuts across the state and indications that the disruptions could continue for weeks, has reignited political controversy over the cancellation of long-term power purchase agreements.
The BJP has alleged that the state is now paying a heavy price for a decision taken during the previous Pinarayi Vijayan government, with the cancellation of low-cost power contracts resulting in an additional financial burden of more than Rs 2,130 crore.
BJP national executive member Kummanam Rajasekharan alleged that the cancellation of the agreements was the result of a nexus between the then Pinarayi Vijayan government, former Power Minister K. Krishnankutty and the Kerala State Electricity Regulatory Commission.
The issue assumed greater significance at a time when households across Kerala are facing power cuts during the night. With the power situation remaining tight, the disruption is expected to continue in the coming weeks unless additional power is made available.
Kummanam pointed out that under long-term agreements entered into with Jhabua Power and Jindal Power, Kerala, during the UDF government in 2014, was to receive 465 MW for 25 years at rates of Rs 4.26 to Rs 4.29 per unit.
The Kerala State Electricity Regulatory Commission cancelled the agreement in May 2023, citing procedural and technical issues.
According to Kummanam, the cancellation deprived Kerala of relatively cheap contracted power and forced the KSEB to depend increasingly on power exchanges and other outside sources, where rates could rise sharply. He claimed the board had at times been forced to buy power at Rs 7 to Rs 10 per unit.
He said official KSEB figures showed that the cancellation had already imposed an additional burden of more than Rs 2,130 crore on the board.
Kummanam alleged that the government had failed to intervene despite warnings from then Chief Secretary Paul Antony and KSEB Chairman N.S. Pillai against cancelling the agreements.
He also questioned the government’s responsibility in view of the appointment of retired Additional Chief Secretary T.K. Jose as chairman of the regulatory commission through a Cabinet decision in November 2022.
The BJP leader said there were options available to protect the agreements, including provisions under the DBFOO framework, but these were not effectively explored.
Kummanam demanded a comprehensive probe into the cancellation of the agreements, the role of the regulatory commission and officials, and the decisions taken by the previous government.
He also sought legal action if any wrongdoing or dereliction of duty was established.
