Why Satheesan govt faces political shock over Kerala power purchase deal

The Opposition Left Front alleges corruption and has demanded that all documents of the deal with a private firm be made publicPolitical differences have emerged in Kerala over the Congress-led United Democratic Front (UDF) government’s power purchase deal with a private company to meet the state’s peak-hour electricity demand from November 2026 till March 2027.Chief minister V.D. Satheesan has overruled the decision of the Kerala State Electricity Board (KSEB) to purchase power from Himachal Pradesh and instead favoured private firm GNA Energy OTC for the deal.Power minister Sunny Joseph had opposed the deal with GNA Energy. At the same time, KSEB chairman and MD M.G. Rajamanickam has been removed and charge of the post taken by IAS officer N. Prashanth.Leader of the Opposition and former chief minister Pinarayi Vijayan alleged the UDF government was creating an artificial power crisis to favour private power companies even though electricity was available at a cheaper rate from the central pool. Kerala currently faces a peak-hour power shortage of 800-900 MW. The Satheesan government began scouting for sources of additional power after the KSEB introduced localised power cuts lasting 15-30 minutes.The KSEB subsequently decided to purchase power from the Himachal Pradesh Power Corporation Limited and sent the proposal to the government. The file apparently remained with the chief minister’s office for over a month. Finally, the government favoured power purchase through private firm GNA Energy.Vijayan alleged massive corruption in the deal and violation of government business rules. “The UDF government created an artificial shortage of power to favour corporates. The state does not suffer from any shortage of power during daytime. It’s just a systematic approach to destabilise the power sector and an attempt by the government to benefit from the deal,” Vijayan told INDIA TODAY.The KSEB, under N. Prashanth, has apparently told the government the state does not need to purchase additional electricity during November-December. As the crisis unfolds, the government has two major factors to explain. First, why the government went ahead with a deal with a private firm when cheaper power was apparently available. Second, why was KSEB’s Rajamanickam removed.The Left parties have demanded that Satheesan make public all documents related to the GNA Energy deal. The chief minister has defended the deal as having gone through a thorough examination on all aspects. According to him, the deal is more competitive than the Himachal government’s offer in terms of per-unit rate.Subscribe to India Today Magazine- Ends