THIRUVANANTHAPURAM: In a calculated fiscal move, the Kerala government has absorbed Rs494.29 crore of losses from the Kerala State Electricity Board (KSEB), enabling it to unlock an additional 0.5 per cent of its Gross State Domestic Product (GSDP) in borrowing – roughly estimated at Rs5,000 crore in fresh fiscal headroom.
This intervention leads to a provisional net profit of Rs571.23 crore reported by KSEB for the financial year 2024–25 (FY25). The profit figure includes the Rs494.29 crore receivable from the government under the central power sector reform-linked borrowing scheme.
Even excluding this one-time support, KSEB appears to have edged into marginal profitability – a notable improvement from the restated loss of Rs1,397.87 crore in FY24 (2023–24).
The restated loss replaced an earlier reported profit of Rs218.51 crore for FY24, suggesting significant year-end adjustments – possibly related to receivables, provisioning, or accounting treatments under Ind AS.
These revisions also set the stage for the state government’s partial loss takeover, which allowed it to qualify for the central government’s borrowing relaxation tied to discom reforms.
KSEB’s improved financial performance in FY25 – even after accounting for the government support – suggests an underlying operational recovery, with better cost controls, improved revenue collections, and streamlined accounting practices playing a role.
The company’s Ind AS-compliant financials were presented to the board on July 29 and are now pending audit certification.
The financials were reviewed by the audit committee on July 29 and presented to the board for initial adoption. The company’s accounts are now awaiting final auditor sign-off.
However, the state government’s intervention was not comprehensive. Of the total Rs 1,397.87 crore loss reported by KSEB for FY 2023–24, only Rs 494.29 crore was absorbed — just enough to meet the eligibility criteria for the Centre’s additional borrowing scheme. The remaining loss burden continues to rest on KSEB’s balance sheet.
