The Kerala government had the best interests of the people at heart in deciding to recommend the restoration of the four ‘unapproved’ long-term power supply contracts totalling 465 MW, Electricity Minister K. Krishnankutty said on October 12. A transparent process was followed to arrive at the decision, he said.
Countering the corruption charges levelled by the Opposition United Democratic Front (UDF), Mr. Krishnankutty said the October 4 Cabinet decision was aimed at avoiding the huge financial liability that Kerala would have incurred in replacing the cheaper power supplied under the ‘unapproved’ contracts with costlier power purchases at current rates.
The Cabinet decided to invoke Section 108 of the Electricity Act and recommend the Kerala State Electricity Regulatory Commission (KSERC) to re-examine its decision not to approve the contracts so as to avert a power supply crisis and the consequent hardship to the public, said Mr. Krishnankutty. The government was also particular that the public should not incur any financial burden on account of the lapses made by the Kerala State Electricity Board (KSEB) when inking the power supply agreements, he said.
