THIRUVANANTHAPURAM: If the state government does not immediately allot the outstanding amount of Rs 327 crore to KSEB, the distribution of next month's pension in the board will be delayed. Rs 127 crore is required for a month in KSEB, which has 40,000 pensioners. Rs 508.67 crore is in reserve. But the expenses for the first week of next month will be Rs 1017.33 crore. The KSEB's issue is that borrowing heavily to find this amount will lead to additional liabilities.

KSEB has strict controls on borrowings and other expenditure due to strict financial discipline. But KSEB hopes that if the government pays the dues, then it will not have to borrow.

Pension for those appointed after implementation of Participatory Pension in 2013 is paid from NPS fund. But KSEB is responsible for paying pension to those who retired and joined the service before that. To solve this, in 2013, it was decided to transfer the pension liability by forming a master trust with a 20-year bond of Rs 8144 crore and a 10-year bond of Rs 5000 crore, but it was not implemented.