THIRUVANANTHAPURAM: The Central Internal Debt Management Department has sanctioned an additional loan of Rs 4060 crore to the state based on its good performance in the power sector in the past one year. This is based on the recommendation of the Union Ministry of Power. With this, the borrowing limit for the state will increase to Rs 23539 crores this financial year.

Last financial year, KSEB made profits and made a huge leap in non-conventional energy generation. In the first year of the second Pinarayi Vijayan government, when Dr B Ashok took over as the Chairman of KSEB, the operating profit was Rs 1400. This is the first time in 15 years that KSEB achieved profits in a year.

Arguing that the borrowing limit has been exceeded and the loans taken in the name of various projects should also be included in the public debt limit, the Center has imposed restrictions on the state's borrowing limit. Due to this, the borrowing limit has been cut to 17969 crore till December of this financial year.

Only Rs 2000 crore was left for the state to borrow. At the same time, there are concerns that KSEB may bow to pressure from pro-government organizations to back off from the smart meter project. Today is the last day to submit the state's position on the smart meter reform.