{"id":668153,"date":"2026-11-07T09:41:15","date_gmt":"2026-11-07T13:41:15","guid":{"rendered":"https:\/\/www.malayalamdailynews.com\/english\/668153\/"},"modified":"2026-11-07T09:41:15","modified_gmt":"2026-11-07T13:41:15","slug":"allegations-of-massive-network-behind-power-contract-opposition-claims-government-conspired-to-enrich-private-companies-with-crores-in-profits","status":"publish","type":"post","link":"https:\/\/www.malayalamdailynews.com\/english\/668153\/","title":{"rendered":"Allegations of Massive Network Behind Power Contract; Opposition Claims Government Conspired to Enrich Private Companies with Crores in Profits"},"content":{"rendered":"
\"Allegations<\/figure>\n

Thiruvananthapuram: Serious allegations have emerged claiming that substantial financial interests and high-level interference were involved behind the GNA power contract executed purportedly to resolve the state\u2019s electricity crisis. The opposition alleges that through this contract, which imposes hundreds of crores of additional liabilities on the public, the government has paved the way for private companies to reap huge profits. Questions are intensifying about whose interests were served by proceeding with the contract bypassing transparent tender procedures and without obtaining prior approval from the regulatory commission. Reports suggest that both the Minister in charge of the Power Department and the KSEB Chairman had opposed the contract, with files revealing that the minister had even recorded dissent notes. The opposition demands to know why the government chose to advance the contract despite departmental objections and on whose recommendation the process was expedited. The decision to buy power at high rates from outside sources without effectively utilizing the state\u2019s hydroelectric generating capacity is also under suspicion. It is pointed out that major dams in Kerala currently have adequate water levels, and the reservoirs have the potential to generate between 1,800 and 1,900 megawatts, whereas the present production hovers around only 800 megawatts. Critics argue that raising hydroelectric output could reduce dependence on costly external power and thus help contain financial liabilities. Yet, the government allegedly approved the contract with inflated tariffs without detailed scrutiny of these alternatives. However, it is relevant to note that electricity generation capacity cannot be determined solely on reservoir water levels; factors such as water conservation needs, power demand, and technical constraints must also be considered. A primary basis for the allegations of financial irregularity is that under the GNA mechanism, electricity was purchased at more than Rs 3 per unit above the prevailing rates in the national market. While power from the central pool costs approximately Rs 5 per unit, through this contract, power was bought at over Rs 8.50 per unit. The opposition questions whose interests were served by creating such a scenario. Considering just this price difference, it is estimated that the state incurred an additional liability of about Rs 635 crore. Critics suggest that when electricity purchase timing, contract duration, transmission charges, and other ancillary liabilities are accounted for, the actual financial loss could be even higher. According to some experts\u2019 assessments, additional liabilities could rise to Rs 727 crore. Moreover, the increased financial burden on KSEB could pressure future tariff hikes, warns the opposition. The allegation that the government structured the decision to protect private entities\u2019 profits at the expense of the state\u2019s financial interests makes the issue more serious. Opposition leader Pinarayi Vijayan, addressing a press conference, added new political intensity to the controversy. He demanded an explanation for approving an expensive contract despite the availability of cheaper electricity and alleged that a senior IAS officer was involved in the deal, which advanced with the Chief Minister\u2019s backing. However, these allegations have not been independently verified. The pricing offered by Himachal Pradesh for supplying power to Kerala is also a key element in the dispute. Initially, Himachal Pradesh proposed a rate exceeding Rs 14 per unit, but Kerala declined to accept this price. Subsequent negotiations lowered it to Rs 12.50, and changes were made to the terms concerning power supply during peak hours in the morning and evening. KSEB\u2019s decision to purchase power was reportedly based on acceptance of these revised terms. However, when the contract controversy arose in the Legislative Assembly, the opposition noted that the Chief Minister had presented the original, higher-rate offer from Himachal Pradesh as a comparison. The opposition alleges that the effort to justify the GNA deal rested on selectively citing the outdated offer, disregarding the lower negotiated tariffs and modified supply conditions. Critics also highlight that under the GNA system, power must be purchased at high rates not only during peak demand periods but also in daytime hours of relatively low consumption, as contract terms mandate a uniform rate at all times. Experts argue such provisions can financially disadvantage the state, especially when cheaper power is available during off-peak periods, resulting in unnecessary expenditures. Compliance with legal requirements in these power procurement processes also remains contested. Power purchase contracts must fulfill regulatory procedures and secure essential approvals. Whether competitive tendering was pursued to identify the most favorable rates also warrants investigation. Yet, allegations claim that the GNA contract lacked transparent tender processes and did not receive prior regulatory commission approval. It is further alleged that the government sought to override the regulator\u2019s decision by invoking Section 108 of the Electricity Act, which allows the state government to issue directives to the regulatory commission on public interest matters. The legal limits of this provision and its relation to the regulator\u2019s autonomous authority are significant considerations; hence, the lawfulness of such government intervention requires thorough scrutiny of orders and procedures. Doubts have also been raised about GNA\u2019s operational methods. It is alleged that GNA itself is not a power-generating company but operates as a digital transaction platform. The institution has been implicated in SEBI investigations as well, with claims of misuse of confidential data from the Central Electricity Regulatory Commission for financial gains. Official documentation needs to confirm the precise identity of the organization and the current status of investigations. Against this background, the opposition questions why the government displayed such keenness to enter into a contract with this system. It demands disclosure of whether the organization\u2019s operational background, financial dealings, and legal standing were thoroughly examined before approving the contract. Calls are growing for full transparency by making all files and decisions related to the power purchase contract public. It is imperative to clarify who authorized the contract, how objections from the department minister and KSEB chairman were addressed, whether comparative studies of alternative power procurement options were conducted, and the true additional financial burden on the state arising from the agreement. The political debate centers on whether measures aimed at securing the state\u2019s power supply have turned into a vehicle for generating profits for private companies. It is the government\u2019s responsibility to ensure transparency and accountability in transactions involving public funds running into crores of rupees. If the allegations are baseless, the government should release the relevant documents and financial data to dispel doubts. Conversely, if irregularities or illegal interference have occurred, an independent and comprehensive investigation must be conducted, and responsible parties subjected to legal action. Since the issue could directly impact ordinary consumers already facing rising electricity tariffs and cost of living pressures, mere political explanations are insufficient. A fact-based clarification concerning the contract\u2019s legality, economic rationale, and public interest is essential. Until the real circumstances behind the government\u2019s decisions emerge, the controversy over the electricity contract is likely to remain a potent political issue within the state.<\/p>\n

n<\/p>\n

Original Malayalam report: Malayalam Daily News<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

Thiruvananthapuram: Serious allegations have emerged claiming that substantial financial interests and high-level interference were involved behind the GNA power contract executed purportedly to resolve the state\u2019s electricity crisis. The opposition alleges that through this contract, which imposes hundreds of crores of additional liabilities on the public, the government has paved the way for private companies to reap huge profits. Questions are intensifying about whose interests were served by proceeding with the contract bypassing transparent tender procedures and without obtaining prior approval from the regulatory commission. Reports suggest that both the…<\/p>\n","protected":false},"author":0,"featured_media":668154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[582,47748],"tags":[],"class_list":["post-668153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english","category-news"],"_links":{"self":[{"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/posts\/668153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/comments?post=668153"}],"version-history":[{"count":0,"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/posts\/668153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/media\/668154"}],"wp:attachment":[{"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/media?parent=668153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/categories?post=668153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.malayalamdailynews.com\/english\/wp-json\/wp\/v2\/tags?post=668153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}