THIRUVANANTHAPURAM: Former Power Minister Aryadan Muhammed explained the power purchase agreement. The agreement was made during LDF government’s period, he said in response to former Power Minister M M Mani’s corruption allegation.

The project was brought during 2013-14. There was power shortage in many states in India including Kerala. It was during that phase, the Indian government launched the Design Build Finance and Operate (DBFO) project. Subsequently, the central government released a guideline for the project. The guideline specified on matters such as how to purchase electricity and how to call for tenders. It was applicable for all the states, said Aryadan Muhammed.

On that basis, there are two bids, technical and financial bids. The guideline also specified about how to analyze it. Accordingly, a committee was formulated. As per the project, the state government decided to tender the Kerala State Electricity Board (KSEB). Power shortage was then severe in the state. When I was the power minister, 102 percent of the total income was used for purchasing power from outside. It was bought on credit. Prior to this, power was bought from the private sector in a similar manner, in 1998, 1999 and 2000 as well. Then, there was no special guideline. It was decided to purchase power from the National Thermal Power Corporation (NTPC) plant in Kayakulam, Reliance plant in Ernakulam and the Goenka plant in Kasaragode. According to the agreements made by LDF in 1998, 1999 and 2000, the price difference as per the central government’s DBFO agreement was very large at the time. Despite purchasing from outside, there was power shortage in the state. It was during that time, the state government decided to purchase power under the central government’s project. All the actions were taken in complete accordance with the central government’s guidelines.

The tender was called in 2016. Tamil Nadu and Karnataka had also called for tenders. The centre’s method then was to give first to those who applied first. The corridor for bringing power from outside will be allowed for those who applied first and then to others. The power grid corporation that grants the approval had placed a condition, that the corridor will be allowed for Kerala only after Tamil Nadu. Kerala, then filed an appeal at the central regulatory commission and won the case. M M Mani had alleged that there was corruption in the agreement. I am not taking it seriously. The agreement came into force in December 2016. Pinarayi Vijayan was ruling then. M M Mani was the power minister. He was the one who purchased power during the time, said Aryandan Muhammed. If corruption took place during my tenure, then they could have filed a case against me. The project could have been withdrawn. The power was not purchased during my tenure, he explained.