GNA contract plan abandoned; CM Satheesan orders probe into Rajamanickam's report

THIRUVANANTHAPURAM: The government abandoned the move to procure electricity under the GNA (Group Net Agreement) contract, a matter that had escalated into a political controversy. The dispute intensified after the Chief Minister maintained that the price was low, while former KSEB CMD Rajamanickam argued otherwise.

The Chief Minister directed the Additional Chief Secretary of the Power Department to examine the basis upon which Rajamanickam submitted a report recommending the continued procurement of more expensive electricity from Himachal Pradesh—instead of GNA power. The Chief Minister stated that the government pursued the GNA contract only after going through Rajamanickam’s report that cited a power shortage in the state.

A turning point occurred on Sunday when Puneet Kumar, Additional Chief Secretary of the Power Department, and N. Prashanth, the new CMD of KSEB, met with Chief Minister V.D. Satheesan to clarify the situation. They explained that there is no need to procure electricity from GNA or Himachal Pradesh during the months of November and December. They assured the Chief Minister that electricity can be sourced as needed through other channels, such as power exchanges.

Furthermore, they indicated that current electricity consumption demands can be met without imposing any power cuts, and that there is no need to purchase high-cost electricity at the moment.

The Chief Minister directed that a long-term agreement—spanning 25 years at a rate of Rs 5.18 per unit—be signed promptly for power procurement from the Sinnar thermal power plant, a joint venture between Mahagenco and NTPC in Maharashtra.

The first unit of the plant is expected to be ready by the end of December, providing 270 MW of power; an additional 270 MW will become available starting in March, bringing the total capacity to 540 MW. KSEB stated that discussions are currently underway and dismissed allegations that the agreement process is being unnecessarily delayed.