No load shedding, KSEB receives Rs 767.71 from govt; board in crisis due to high consumption

Wednesday 27 March, 2024 | 1:13 AM READ MALAYALAM VERSION

THIRUVANANTHAPURAM: The government yesterday paid Rs 767.71 crore to KSEB, which has no money to buy electricity at exorbitant prices every day. This eliminates the threat of load shedding. On March 8, Kerala Kaumudi had reported that load shedding would be necessary if the government does not pay.

The government had assumed the loss of KSEB for 2022-23. Rs 1023.61 crores will be paid by the government through this. Rs 767.71 crore is 75 percent of that.

The Centre had allowed Kerala to take a loan of Rs 4,866 crore for reforms in the power sector. It was for this loan that the government assumed the loss of KSEB. The loan was taken and the amount was transferred from it.

The crisis was aggravated by the withdrawal of the central institution, Rural Electrification Corporation, which had promised to provide a loan of Rs 500 crores in March, when the elections were announced.

With the cancellation of long-term contracts, it is no longer possible to get cheap electricity. To buy electricity from open source, you have to pay several crores in advance.

KSEB is on the list of PSUs banned from lending by Reserve Bank due to mounting electricity bill arrears and continuous losses. Because of this, the board will only get loans at a high interest rate.

Due to the financial crisis, the government and public sector institutions are not paying their monthly bills. The Chief Minister called an emergency meeting and decided to provide money to KSEB and take a loan of Rs 500 crores.

Rs 1100 crore is to be recovered by the government since November as electricity duty. However, the government did not hand over the Rs 60 crores given by the German Bank and the Rs 40 crores sanctioned by NABARD as a loan to KSEB.

Ten crores a day to buy power

650 MW: Additional electricity bought on Saturday

Price: Rs 9 crores

101.13 million unit: Total consumption

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347 MW: Additional power bought on Sunday

Price: Rs 11 crores

101.49 million units: Total consumption

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427MW: Additional power purchased on Monday

Price: Rs 8 crores

100.20 million units: Total consumption

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The board didn't have to buy electricity on Tuesday. Total consumption is 87 million units. Up to 15 crore rupees will have to be purchased in April and May

Salary after taking loan

KSEB, which is in dire financial straits, took a loan of Rs 500 crore in January and Rs 200 crore in February to pay salaries and pensions.

3585.69 crore due