Vijayan alleges corruption behind GNA deal, says power crisis artificially created in Keralam

Thiruvananthapuram, Leader of the Opposition Pinarayi Vijayan on Friday alleged that the power crisis in Keralam was artificially created to facilitate an electricity purchase deal through GNA Energy, raising suspicions of corruption behind the agreement.

Addressing a press conference here, Vijayan questioned the state government's decision to purchase 500 MW of electricity through GNA Energy instead of procuring power under the revised offer from Himachal Pradesh.

He alleged that the decision was taken by overruling the positions of the Kerala State Electricity Board and the Electricity Minister Sunny Joseph.

Chief Minister V D Satheesan had earlier said that one proposal was to procure electricity from Himachal Pradesh at ₹14.50 per unit through Power Trading Corporation India Ltd, while GNA Energy had offered power at ₹8.63 and ₹8.90 per unit.

GNA Energy is a digital Over The Counter platform that brings together potential buyers and sellers of electricity.

"There is no reason to say that Keralam is facing an electricity shortage. This is an artificially created shortage," the former chief minister said.

The CPI veteran alleged that the chief minister had decided to go ahead with the power purchase agreement despite objections from the KSEB and the Electricity Department, without following normal administrative procedures or discussing the matter in the Cabinet.

Questioning the CM's reported statement that he had personally decided to sign the agreement, the opposition leader said electricity-related decisions were primarily the responsibility of the KSEB and the concerned department.

"Can the chief minister take a position contrary to that of the Electricity Board and the Electricity Minister? On what basis was such a decision taken," he asked.

He said the circumstances surrounding the agreement raised serious suspicions and demanded that the government release all files and documents relating to the deal.

Vijayan also questioned the decision to procure electricity through GNA Energy, describing it as an OTC platform rather than a power-generating company.

He said transparent procedures, including competitive tenders, should have been followed for electricity purchases and questioned why the chief minister had directly intervened in a deal involving a platform that did not generate power.

"Whose electricity is being supplied through GNA? Which company generates this electricity? There are no answers to these questions," he said.

Vijayan said the KSEB had officially informed the government that the proposed arrangement would cause financial losses.

He also referred to the objections reportedly raised by former KSEB chairman and managing director M G Rajamanickam.

He alleged that pressure was exerted on the official to approve the deal and that he was subsequently removed after refusing to accept it.

Questioning the justification for the alleged power crisis, Vijayan said Keralam had received sufficient rainfall in the previous month and that water levels in dams were adequate.

He also pointed out that electricity was available at lower rates in the national market, questioning the need to reduce domestic generation and purchase power at higher prices through GNA.

According to Vijayan, the average price of round-the-clock electricity at the national power exchange was around ₹5 per unit, while the rates offered through GNA Energy were ₹8.63 and ₹8.90 per unit.

He claimed that the difference would result in an additional financial burden of around ₹635 crore for the state for a total supply of 181.2 crore units.

"When electricity is available in the market at around ₹5 per unit, whose interests are being served by paying more than ₹3.50 extra per unit," he asked.

Comparing the GNA Energy arrangement with the revised offer from Himachal Pradesh, Vijayan said the initial offer from the hill state was ₹16.50 per unit, which was rejected by the KSEB.

He said Himachal Pradesh subsequently reduced the rate to ₹12.50 per unit and extended the offer to morning and evening peak hours. The KSEB accepted the revised offer, and Keralam purchased electricity from Himachal Pradesh in October under those terms, he said.

Vijayan claimed that purchasing 500 MW through GNA Energy during daytime hours, when electricity demand was comparatively lower, would result in an additional financial burden of at least ₹727 crore when compared with the Himachal Pradesh arrangement.

He alleged that the chief minister was citing the earlier, higher Himachal Pradesh rate to justify the GNA Energy deal instead of comparing it with the revised rate under which Keralam had actually purchased electricity.

Vijayan also rejected allegations that the previous LDF government had purchased electricity directly from GNA Energy.

He said power swapping was a regular practice in electricity transactions and GNA Energy had been involved in such arrangements during the LDF government's tenure as well. However, the only payment made to the platform was the service charge approved by the regulatory commission, he said.

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