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Kerala Kaumudi Online
Wednesday, 19 February 2025 9.16 PM IST

Govt takes over KSEB's loss; state will be able to borrow additional Rs 6250 crore

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THIRUVANANTHAPURAM: The government issued an order yesterday to take over 90% of the loss suffered by the KSEB in the previous year to allow the state to increase its borrowing limit by 0.5%. This will enable the state to borrow an additional Rs 6,250 crore.

By taking over a fixed percentage of KSEB’s annual losses, the state government will be eligible to borrow an additional half percent of the Gross Domestic Product (GDP) beyond the usual borrowing limit of 3%. The government took the action as per this provision.

According to the audit, KSEB's loss for the year 2023-24 is Rs 549.21 crore. The government has taken over 90% of this, amounting to Rs 494.28 crore, as per the finance department's order.

At the same time, it was the losses that led the Regulatory Commission to approve the KSEB's demand for an electricity tariff hike last month. With the government taking over the losses, the rate hike will technically become irrelevant. However, the Regulatory Commission has explained that KSEB's loss from the previous year will be included in the revenue for the next year, and when calculating future rate hikes, it will be reduced accordingly.

In the 2022-23 financial year, KSEB had suffered a loss of Rs 913 crore. The government had taken over 75 percent (Rs 767.715 crore) of this amount. The Regulatory Commission stated that the electricity tariff hike was calculated by reducing this amount from KSEB's loss for this year. A similar approach will be followed next year as well. They assured that consumers will not incur any additional burden.

TAGS: KERALA, KSEB, KERALA GOVERNMENT
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