THIRUVANANTHAPURAM: Government rejected smart meters to please the trade union but still wants loans and a Rs 20,000-crore power upgrade project. The government, in a state of disarray, tried in vain to reach a consensus with the Center. Power Minister K Krishnankutty wrote to the Center seeking a three-month extension when this was the situation. Only the states that accept smart meters will get central assistance and Kerala is the only one that has refused to use them.
The letter said that if the TOTEX method of implementing the project through a private agency is changed, it will be reconsidered and allowed. The tenders for smart meters are huge. This will result in an additional liability of Rs 100 per month to the customers. There is already an excess of surcharges. The letter explains that the TOTEX model was not accepted to avoid further liability and a less expensive alternative method should be allowed. The letter was written to Union Power Minister RK Singh promising that the state is carrying out major reforms in the power sector. It is unlikely that the TOTEX model will be changed and permission will be granted only to Kerala. The deadline for the smart meter tender had expired last December. As requested by Kerala, it was extended till June 15. It was decided to abandon the project after that.
The government cannot afford a 7500 crore loan to implement power reforms in its current economic crisis. The situation is such that loan is not available to even overcome the crisis during Onam.
A loan amount of 15,390 crores has been permitted till December. Within this, 14,500 crores have been reached already after deciding to take another 2,000 crores yesterday. Only 890 crores remain now. While Kerala has requested an aid of Rs 15,000 crore as an interim relief or an additional loan of one percent of gross revenue as an ad hoc sanction, the Center has not responded. A decision may be taken in the next cabinet meeting, on the economic crisis during Onam.
Rejecting smart meter will lead to the loss of
3 lakh crore project
3,05,894 crores worth of electricity renovation is going on in the country under the Revamped Distribution Sector Scheme or RDSS. Out of this, 1.50 lakh crore will be spent on installing 25 crore smart meters. Electricity modernization cannot be achieved by rejecting smart meters. If rejected, the whole project will be lost. The goal is a world-class power distribution system. If Kerala turns its back, the loss will be to the consumers.