Kerala GNA Power Deal: Vijayan Alleges Artificial Crisis, Rs 727 Crore Loss

Leader of Opposition Pinarayi Vijayan alleged at a press conference in Thiruvananthapuram on Friday, 6 November, that the power crisis in Keralam was “artificially created” so the Congress-led UDF government could buy 500 MW through GNA Energy without a tender. Vijayan, the CPI(M) leader and former Chief Minister, demanded that the government release every file on the deal. Chief Minister V D Satheesan rejected the charges the same day, calling them factually incorrect, according to PTI and ANI reports.

What Vijayan Alleged About the Deal

Vijayan said GNA Energy is an over-the-counter trading platform, not a generator, and that the purchase bypassed competitive tenders and a Cabinet discussion. He alleged that the government overruled the Kerala State Electricity Board (KSEB) and Electricity Minister Sunny Joseph, and that former KSEB chairman M G Rajamanickam was pressured to approve it and removed after refusing. He said rainfall and dam levels were adequate and there was no real shortage.

The Numbers Behind the Charge

Vijayan said GNA offered power at Rs 8.63 and Rs 8.90 a unit, against a revised Himachal Pradesh offer of Rs 12.50 that KSEB had accepted and used in October. He estimated that buying 500 MW during the day through GNA would add at least Rs 727 crore compared with the Himachal arrangement, and about Rs 635 crore on 181.2 crore units. The average national exchange price is about Rs 5 a unit, he said. These are Vijayan’s figures; the government has not accepted them.

Also read Kerala Congress CJI Post: Supreme Court Issues Contempt Notice

The Government’s Reply

Satheesan said the decision was taken after examining all aspects and in the state’s interest. He said Himachal made only one offer, that its Rs 14.50 rate included the margin of intermediary PTC India Ltd, and that its tariff exceeds the Rs 10 a unit ceiling set by the regulator. Citing a 29 October note by Rajamanickam, he said GNA would supply 385 million more units than the Himachal deal during non-solar hours. KSEB said six competitive tenders on the Union Power Ministry’s DEEP portal had failed to secure the power needed. Satheesan also asked where Vijayan got a proposal that KSEB says it has not received. See also IPB’s reports on Kerala.

Files Remain the Open Question

The two sides cite different Himachal rates, and the GNA contract rate and duration have not been published in the reports available. Vijayan’s demand to make the files public is pending; neither the government nor KSEB has said whether it will comply.

Source: Based on reporting by ANI, DT Next and ThePrint (PTI).

Image: PTI.