Keralam power crisis 'artificially created', Pinarayi Vijayan questions GNA energy deal

Keralam Leader of Opposition Pinarayi Vijayan on Friday accused the Congress-led UDF government of creating an artificial power crisis in the state, questioning its claims of a shortage and raising concerns over the electricity purchase agreement with GNA Energy.

Vijayan said there was no evidence of a major power shortage at the national level and questioned why the state government, particularly the Chief Minister, was projecting a severe crisis.

"At the national level, there is no indication of a major power shortage or any crisis at this point. In fact, the overall situation suggests that power availability is improving. Against this backdrop, I fail to understand why the state government, particularly the Chief Minister, is claiming that Kerala is facing a severe power crisis," Vijayan said at a press conference.

"There is no natural reason for a power shortage at this stage. Creating an impression that there is a shortage and repeatedly claiming that a crisis exists only gives rise to the suspicion that an artificial crisis is being projected," he added.

The former Chief Minister also questioned whether the power shortage narrative was being promoted to protect the interests of private players, alleging that large corporate groups control a significant share of India's electricity generation.

"A major share of the country's electricity generation is now controlled by large private corporate groups. It needs to be examined whether this narrative of a power crisis is intended to protect the interests of these private players. There is no basis to claim that Kerala is facing an actual shortage. What we are seeing appears to be an artificially created crisis," he said.

Vijayan also accused the Chief Minister of avoiding questions about alleged corruption in the power purchase deal.

"I understand that journalists raised questions about corruption, but the Chief Minister did not answer them. There are several suspicious aspects that remain unexplained. His response gives the impression of being almost an admission of responsibility for the entire controversy," he said.

Vijayan questions GNA Energy power purchase deal

The remarks came after Chief Minister V.D. Satheesan defended the government's decision to choose GNA Energy over a power supply offer from Himachal Pradesh.

Vijayan argued that GNA Energy was a digital over-the-counter (OTC) platform, not a power generation company. He alleged that the deal was finalised without a tender or a transparent procedure.

"Despite the absence of these safeguards, pressure was created to purchase electricity. The government must explain how that pressure arose. Why should the Chief Minister personally intervene on behalf of a platform that does not generate electricity? There are serious questions about whose electricity is being supplied and which company is actually providing it. There is no clear answer to the question of whose power GNA is offering," the senior CPI(M) leader said.

He also questioned the removal of IAS officer R. Rajamanickam from the post of Power Secretary, alleging that he was transferred after flagging irregularities and warning of possible financial losses in the Kerala State Electricity Board Limited's (KSEB) assessment.

"If the KSEB's assessment was incorrect, the government had every right to point that out. But no such shortcomings were identified. The KSEB had submitted a letter highlighting the potential losses. Even if the government refuses to accept its contents, that letter is part of the public record," Vijayan said.

"R Rajamanickam was also the Power Secretary at one point. A capable IAS officer was removed from the post. He was shifted after pointing out irregularities. The decision appears to have been that someone who refused to yield to pressure should not continue in that position. This is something anyone can understand," he added.

Vijayan further claimed that an official file note by Electricity Minister Sunny Joseph supporting the Himachal Pradesh power proposal contradicted the Chief Minister's defence of the GNA arrangement.

He alleged that the government had withheld details of a revised tariff offered by Himachal Pradesh, which could make the GNA deal more expensive by Rs 727 crore.

"Electricity Minister Sunny Joseph had recorded a note in the file favouring the Himachal Pradesh proposal. These are official file records, and they contradict the Chief Minister's statements. In October, electricity was purchased from Himachal Pradesh under a revised offer at 12.50 paise. They had also revised the terms for peak-hour supply. Under the GNA arrangement, however, its rate applies throughout the day. This could result in an additional loss of Rs 727 crore," he said.

"The Chief Minister is concealing these facts and highlighting the earlier offer from Himachal Pradesh to justify the GNA arrangement. That is not acceptable," Vijayan added.

Vijayan calls bar licence controversy 'bizarre'

Separately, Vijayan criticised the state government's response to the Centre's concerns over alleged irregularities in bar licences, describing the controversy as "bizarre".

He said the provisions governing bar licences were not introduced by the previous LDF government, which, according to him, had only continued the existing rules.

"The controversy surrounding bar licences is bizarre. The Minister's explanation is that the current situation is the result of measures taken by the LDF government. But the law was not introduced by the LDF government. The Chief Minister has a way of presenting facts in a misleading manner to create confusion," Vijayan said.

He pointed to a Gazette notification issued during the 2011-2016 period, which introduced a new category, FL-7, and amended the rules to allow lounge bars at international airports. The order also authorised the Excise Commissioner and Deputy Commissioners to grant the necessary approvals.

"The LDF government has made no changes to these provisions. It has only continued the rules that have been in place for a long time," the former Chief Minister said.

(With ANI inputs)