Thiruvananthapuram, Nov 6 (PTI) Chief Minister V D Satheesan on Friday rejected the allegations raised by Leader of Opposition Pinarayi Vijayan over the Keralam's electricity purchase through the GNA platform, asserting that the decision was taken after examining all relevant aspects and keeping the state's interests in mind.
Earlier in the day, Vijayan questioned the state government's decision to purchase 500 MW of electricity through GNA Energy instead of procuring power under the revised offer from Himachal Pradesh.
GNA Energy is a digital over-the-counter (OTC) platform that brings together potential buyers and sellers of electricity.
In a statement, Satheesan said Vijayan's allegations, including that he had improperly intervened in the power purchase decision and that an electricity shortage was artificially created to facilitate the deal, were factually incorrect.
He disputed Vijayan's claim that Himachal Pradesh had initially offered electricity at Rs 14.50 per unit and later reduced the rate to Rs 12.50.
Quoting a note written by former Kerala State Electricity Board (KSEB) chairman M G Rajamanickam on October 29, Satheesan said the Himachal Pradesh authorities had not given any assurance to supply electricity at a cheaper rate.
"Where did the Leader of Opposition get the proposal that even KSEB says it has not received? He should be prepared to make it public," he said.
Satheesan also said the Himachal Pradesh proposal was routed through Power Trading Corporation (PTC) India Ltd, an intermediary, and that its margin was included in the quoted rate of Rs 14.50 per unit.
Rejecting Vijayan's argument that the government was citing the earlier Himachal Pradesh rate to justify the GNA arrangement, Satheesan said Himachal Pradesh had made only one offer to KSEB and there was no distinction between an old and a revised rate.
He also pointed out that the previous LDF government, when Vijayan was Chief Minister, had purchased electricity through GNA on several occasions, despite the Left leader now describing the platform as a non-generating company.
Rejecting the charge that the state was not facing an electricity shortage, Satheesan cited a note sent by Rajamanickam to the Chief Minister through the Electricity Minister on October 29.
The note had warned that the existing power shortage, coupled with deficient rainfall, limited availability of hydel power and reported El Nino conditions, left little scope to absorb further uncertainty in power supply.
It had also cautioned that if the available power was lost without an equivalent firm replacement, KSEB might have no practical option but to impose prolonged power cuts, including during the summer months, he said.
Satheesan said KSEB had informed the government that the required power was not available through open competitive tenders and had sought an urgent decision on the available agreements to prevent power cuts.
KSEB had conducted six competitive tenders through the Union Power Ministry's DEEP portal but could not secure the required electricity, he said. Proposals submitted before the regulatory commission had also failed to ensure adequate supply during non-solar hours, when demand was high.
Responding to Vijayan's claim that electricity was available in the open market at around Rs 5 per unit and that the GNA arrangement would cost an additional Rs 3.50 per unit, Satheesan said the same calculation would put the cost of power from Himachal Pradesh at Rs 9.50 per unit.
Satheesan said the decision was based on an assessment of which source could provide electricity at the lowest rate during non-solar and peak hours, when the state's demand was highest.
The former KSEB chairman had noted that the GNA arrangement would provide 385 million units more than the Himachal Pradesh agreement during non-solar hours, he said.
He also said the average electricity supplied by Himachal Pradesh during the peak period from 6.30 pm to 10.30 pm in December, January, February and March was considerably lower than the 500 MW that GNA would provide.
The Himachal Pradesh agreement involved a tariff higher than the Rs 10 per unit ceiling fixed by the regulatory commission and would impose an additional financial burden on the state, he said.
The additional electricity available through GNA during daytime would also help Keralam conserve hydel power for the summer months, Satheesan said.
Rejecting the allegation that he had bypassed the Electricity Minister and intervened in files without authority, Satheesan said the file had been sent to him by the minister for a decision.
"The file was examined, including the financial burden on the state, and an appropriate decision was taken," he said.
He also questioned why Vijayan was supporting a power purchase arrangement that would provide less electricity at higher rates outside solar hours and during peak demand.
Satheesan recalled that the previous UDF government had entered into long-term power purchase agreements at Rs 4.29 per unit for 25 years, which were cancelled after eight years during LDF tenure.
Electricity was subsequently purchased from private agencies at rates ranging from Rs 8 to Rs 14 per unit, he alleged.
"Unlike the decision taken by the LDF government, we will not take any anti-people decision. No decision that imposes an additional financial burden on the people will be taken by this government," he added.
(This story has not been edited by THE WEEK and is auto-generated from PTI)