Politics · India Bureau
Kerala CPI(M) warns of fiscal loss from private power purchases
A senior CPI(M) leader in Kerala has cautioned that procuring electricity from private companies would inflict substantial financial damage on the state's exchequer. P Rajeev raised concerns over the economic implications of such energy procurement arrangements.
LSN India ·
P Rajeev, a prominent CPI(M) figure in Kerala, has voiced strong opposition to the state's potential purchase of power from private sector entities, arguing that such a move would result in significant fiscal losses for the state government.
The CPI(M) leader's statement reflects broader concerns within Kerala's ruling coalition about the economic sustainability of sourcing electricity from private power generation companies rather than state-owned facilities.
Rajeev's remarks come amid ongoing debates in Kerala about energy procurement policies and their impact on the state's finances. The opposition to private power purchases is rooted in calculations about long-term costs and the preference for maintaining energy independence through state-controlled generation and distribution.
The Kerala government has traditionally relied on a mix of hydroelectric and thermal power sources managed by state entities. The debate over engaging private power suppliers underscores tensions between cost management and energy security in the state's power sector strategy.