Buying power from private company will cause huge loss to Keralam: CPI(M) leader P Rajeev

Thiruvananthapuram, Senior CPI leader P Rajeev on Thursday alleged that Kerala Chief Minister V D Satheesan concealed facts that buying electricity from a private company will cause more losses to the state than purchasing it from Himachal Pradesh.

Buying power from private company will cause huge loss to Keralam: CPI(M) leader P RajeevRajeev told reporters that the state government's decision to buy electricity through a private trading platform "will lead to huge corruption".

Satheesan, on Wednesday at a press conference here, had claimed that procuring electricity through a private trading platform would save the state ₹2,232 crore. The CM had said that one proposal was to procure electricity from Himachal Pradesh at ₹14.50 per unit through Power Trading Corporation India Ltd, while GNA Energy had offered power at ₹8.63 and ₹8.90 per unit.

GNA Energy is a digital Over The Counter platform that brings together potential buyers and sellers of electricity. Terming his claims as "lies", the senior CPI leader said that power will have to be bought from GNA for the entire period, including the non-peak hours when the electricity generated by the state itself was in excess of the requirement.

"We are already surrendering the excess power we generate during non-peak hours, and if we buy it now, we will have to surrender that too or sell it at low rates, which will cause a loss to the state," Rajeev contended. He said that Himachal Pradesh was providing power only during the peak hours and not during the daytime.

"Therefore, if we sell our excess production during the daytime for ₹2.5 per unit and purchase power from Himachal Pradesh at ₹14.50, the state will still save at least around ₹250 crore," Rajeev claimed. He said that this was according to a letter reportedly sent by former Kerala State Electricity Board chairman M G Rajamanickam to the government.

The senior Marxist leader claimed that procuring electricity from the private platform "will lead to huge corruption". "The CM is hiding the facts. Why does the government want to enter into such an agreement which will cause a major loss to the state?

What is the need to buy power hastily now without any tender?" were the queries raised by Rajeev. He also questioned whether the regulatory commission has examined or recommended the purchase of power from the private platform.

He was of the view that it would be more profitable for the government to buy electricity from the power exchange as per the state's requirement. This article was generated from an automated news agency feed without modifications to text.