Decision in view of financial crisis faced by sole power provider in the state
Amit Chettupuzha
THIRUVANANTHAPURAM: The financial crisis faced by many state-owned enterprises in Kerala is not a new phenomenon, as the struggles of KSEB, KSRTC, the Kerala Water Authority (KWA), KTDFC, and others stand as testimony to the challenging state of such public enterprises.
Citing an acute financial crisis, KSEB, the sole provider of electricity in the state, has decided to prune the Rs1069.86 crore outlay provided for Transmission Strategic Business Unit (SBU) in the Annual Plan for the year 2024-25 by almost 40 per cent to Rs663 crore.
KSEB has been struggling for a long time now financially, rolling out losses year after year, straddled with huge borrowings at Rs15,403 crore and sitting on a humungous negative net worth to the tune of Rs33,210 crore as on December 31, 2023.
To add insult to injury, the government and public sector institutions have not been paying their monthly bills to KSEB, thanks to the worsening financial affairs of the state government. The government reportedly owes Rs3,348 crore to KSEB.
However, the Kerala Government has decided to take over the electricity bill dues of the Kerala Water Authority (KWA) that has mounted to Rs2,068 crore, being the largest due from a single entity to KSEB. The money will be released to the KSEB in 10 equal instalments of Rs206.8 crore, the government had said in a March 12 order.
“In view of the financial crisis faced by KSEB it was decided to revise the plan outlay for transmission SBU for the year 2024-25 to Rs.663 crore inclusive of an amount of Rs125 crore exclusively set aside for Revamped Distribution Sector Scheme (RDSS) works,” an official note from KSEB said.
KSEB has envisaged the investment in order to have an efficient transmission grid, especially during the severe power position shortage period with an aim to mitigate the adversities experienced in a few areas. “This needs specific attention and therefore, it is of paramount importance to have a transparent technical indexing system to arrive at prioritization of the projects,” the KSEB note added.
Priorities charted out
KSEB said the works covered in the reduced outlay of Rs663 crore have been prioritized based on their importance, essentiality, and benefits. RDSS Phase I works totaling Rs125 crore included under RDSS expenses has been given the top priority, as realisation of these works is essential for ensuring RDSS funding.
