THIRUVANANTHAPURAM: Keala is set to lose Rs 10475 crore allotted by the central government, just for the ineptitude shown by KSEB. Centre asked the state to reform the electricity system in modern ways. Thus came the process to install 37 lakh smart meters in the state. However, the move has gone astray with KSEB lacking behind to meet the numbers. The department will now hike the tariffs on electricity to redeem the Rs 2939 crore loss incurred by the department. Union minister R K Singh has given the deadline of June 15 for the state to inform about the development in installing smart meters.

R K Singh also asked the state to drop from the scheme if failed to give the contract for smart meters before June 15. Smart meters are essential for regulating the tariffs and will help consumers receive reasonable bills for the energy used. With Kerala showing lapse, the centre-allowed subsidy of Rs 2000 crore will also be taken back. The government should also pay back Rs 67 crore to the central government for not adopting this scheme. To meet this target, the government plans to take a loan from KIIFB while weaving another plan to increase tariffs to squeeze that money from the public.

The union in KSEB was the mainspring behind the halt in the scheme. From the Rs 67 crore received, the government could utilize just Rs 28 crore. Earlier, the director board in KSEB favored a plan to install smart meters but the left-affiliated unions stopped the tender process from running. The left party wanted the C-DAC to take up the smart meter installment.