Private Power Purchase Could Cause Huge Loss to Kerala, Warns CPI(M) Leader P Rajeev

CPI(M) leader P Rajeev has criticised the Kerala government's proposed electricity purchase through private power trading platform GNA Energy, warning that the arrangement could cause significant financial losses to the state. The remarks come amid a political dispute over the government's claim that purchasing electricity through GNA Energy could help Kerala save around ₹2,232 crore.

Chief Minister V D Satheesan had earlier defended the proposed arrangement, stating that electricity could be procured through GNA Energy at rates of ₹8.63 and ₹8.90 per unit, compared with the ₹14.50 per unit reportedly offered for power from Himachal Pradesh through Power Trading Corporation of India Ltd (PTC India). Rajeev questioned the government's comparison, arguing that the two proposals involved different supply conditions and could not be evaluated solely on the basis of per-unit prices.

According to the CPI(M) leader, the GNA Energy arrangement could force Kerala to purchase electricity even during daytime hours when the state's own generation may be sufficient to meet demand. This could result in surplus power that would have to be sold or surrendered at lower rates, potentially increasing the state's financial burden.

Rajeev argued that purchasing electricity from Himachal Pradesh specifically during peak-demand hours could be a more economical option. He said Kerala could sell surplus daytime electricity at approximately ₹2.50 per unit and procure power at ₹14.50 per unit during peak hours, potentially saving at least ₹250 crore.

To support his argument, Rajeev referred to a letter reportedly sent to the state government by former Kerala State Electricity Board (KSEB) chairman M G Rajamanickam. He also questioned the government's decision to consider the private trading platform without a tender process and raised concerns about the regulatory assessment of the proposed arrangement.

The controversy had earlier intensified after CPI(M) leader Elamaram Kareem raised objections to the proposed procurement of 500 MW of electricity through GNA Energy. Kareem cited a KSEB assessment that reportedly estimated an additional financial burden of ₹727 crore if electricity was purchased at ₹8.63 per unit.

The dispute has brought Kerala's electricity procurement strategy under political scrutiny, with questions being raised over the financial calculations, supply conditions and transparency of the proposed agreement. While the government maintains that the private platform could help reduce electricity procurement costs, CPI(M) leaders have argued that the overall financial implications must be examined before proceeding with the arrangement. The central issue remains whether the proposed deal will genuinely reduce Kerala's electricity expenses or create additional costs by requiring the state to purchase power even when it has sufficient electricity available.

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