Arrears at Rs1265.34 crore as of June end
C L Jose
KOCHI/November 06-2023: The Finance Department has initiated steps to extend succor to the financially stressed KSEB Ltd by prompting Kerala Water Authority (KWA), the largest debtor of the Kerala’s lone power supplier, to start paying up.
While the total arrears to KSEB Ltd as of June end, 2023 stand at Rs3261.09 crore, KWA alone owes a big chunk of it at Rs1265.34 crore or close to 40 per cent of the total arrears.
The Finance Department has directed KWA to start an Escrow account, where KWA can remit funds. “A particular amount shall be made available from this to KSEB Ltd on a monthly basis,” the Finance Department order has stated.
An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.
The government has already directed the Finance Department to issue an order for giving permission to open an Escrow Account for remittance of electricity charges by Kerala Water Authority (KWA).
The plan is to commence the exercise to settle the electricity charge dues of KWA to KSEB Ltd with effect from November 1, 2023 onwards.
KSEB Ltd, wilting under the pressure of repeated annual losses and huge debt burden, has been heaped with arrears owed by public sector as well as private sector debtors with the former’s running into a few thousands of crores rupees.
While the total arrears have been estimated at Rs3261.09 crore (LT Rs1064.65 crore and HT at Rs2195.44 crore as of June end, 2023), State entities alone owe Rs1325.48 crore to KSEB.
It was a few days ago, the Kerala State Electricity Regulatory Commission (KSERC) issued interim orders revising the power tariffs, including that of the domestic category, for an eight-month period from November 1 this year to June 30, 2024.
Through the tariff revision, the KSEB will generate an additional annual revenue of Rs532.50 crore, which include Rs453.13 crore from the low tension (LT) consumer category and Rs79.38 crore from the high tension/extra high-tension categories.
Through the losses accumulated over the years, KSEB’s net worth has deteriorated to a negative Rs27,075.28 crore as of June end, 2023. The borrowings are at a whopping Rs15, 721.75 crore as per the latest balance sheet available.
