The Kerala State Electricity Board Ltd. (KSEB) currently carries a debt burden of nearly ₹11,000 crore.
While Electricity Minister K. Krishnankutty attributed the growing debt to additional expenses incurred due to the shortfall in rain, the Opposition blamed the government for pushing the company into an unprecedented financial crisis through its decision to cancel a long-term power purchase agreement signed by the Oommen Chandy government.
The bleak scenario of the State’s power utility was taken up for discussion during the Question Hour in the Assembly on Tuesday when Mr. Krishnankutty revealed that the KSEB has incurred additional expenses amounting to ₹1,180 crore during the current fiscal alone. “The monsoon deficit last year, coupled with the fall in domestic power generation and increased consumption, had necessitated the purchase of power at high rates, thereby increasing the company’s losses. The company had to enter into short-term power contracts and also purchase electricity through the power exchange to meet the demand,” he said.
