Kerala govt defends power deal choice to avert ₹2,200 crore liability

Kerala's government defended its selection of a power purchase agreement with GNA Axles over an alternative deal from Himachal Pradesh, arguing the choice would protect the state from an additional ₹2,200 crore liability. Chief Minister V.D. Satheesan clarified that the decision was driven by financial prudence rather than other considerations.

The power procurement decision had drawn criticism from opposition parties, who questioned the government's rationale for prioritizing the GNA offer. Satheesan addressed these concerns by emphasizing the long-term fiscal implications of accepting the Himachal Pradesh proposal.

The Chief Minister also moved to dispel suggestions that the recent transfer of M.G. Rajamanickam, chairman and managing director of Kerala State Electricity Board (KSEB), was linked to the power purchase controversy. Satheesan stated that the administrative reshuffle was unrelated to the power deal deliberations, rejecting opposition claims of any connection between the two matters.

The clarification comes as the state continues to grapple with power sector challenges and the need to secure reliable energy supplies while maintaining fiscal sustainability. The government's position underscores its commitment to making procurement decisions based on financial and operational considerations.