Keralam govt. likely to defer power procurement via GNA Energy

The State government is likely to put on hold a decision for short-term procurement of electricity via the over-the-counter (OTC) platform GNA Energy. The move, apparently, is based on a conclusion by the Power department that Keralam is not facing power shortage at the moment and there is no urgency for additional power purchases.

The latest development comes amid a raging controversy over Chief Minister V.D. Satheesan’s decision to opt for supplies via GNA Energy for the November 2026-March 2027 period over an offer from Himachal Pradesh. The Opposition Left Democratic Front (LDF) had questioned the logic behind Mr. Satheesan’s decision from the perspectives of cost, peak-hour requirements and transparency.

When contacted by The Hindu, Additional Chief Secretary (Power) Puneet Kumar said the State was not facing any urgent requirement for additional supplies. The department will try to purchase power required at the best price available, he said. Mr. Kumar, who had taken charge as ACS (Power) in the November 2 bureaucratic reshuffle, said he had asked N. Prasanth — also a recent appointment as KSEB CMD — to analyse the power position. A clearer picture in this regard should emerge within one or two days, he said.

Reportedly, the government is also examining the circumstances in which the previous KSEB CMD M.G. Rajamanickam had, in a purported letter to the government, sought an urgent decision on the power purchase proposals on the grounds that the State’s power situation could worsen, especially during the critical summer months.

The controversy surrounds the power supply offers made by GNA Energy (at ₹8.63 per unit) and Himachal Pradesh government (₹14.50 per unit). The issue reached a tipping point on November 4 after the Chief Minister said at a post-Cabinet press briefing that supply from GNA Energy was chosen over the Himachal Pradesh offer to avert an additional financial liability of ₹2,232 crore for the State.

Mr. Satheesan claimed that a comparison of the volumes on offer indicated that GNA offered to supply more during the peak hours, 6 p.m. to midnight. But KSEB documents appeared to contradict the Chief Minister’s position.

Mr. Satheesan’s claim was also sharply contested by the Opposition and the Left-backed Electricity Employees Federation of India (EEFI). They challenged the Chief Minister to make public all files, documents and Mr. Rajamanickam’s note to the government related to the power purchase offers.

While Mr. Satheesan has yet to oblige, he has maintained that his decision was based on a careful examination of the government file concerned. On Saturday, Mr. Satheesan had said that Mr. Rajamanickam’s note to the government had said that the GNA proposal “also can be considered.”