Kerala needs long-term power deals, not claims of no crisis: Sunny Joseph | Interview

Thiruvananthapuram: Power Minister Sunny Joseph has rejected the Kerala State Electricity Board's (KSEB) claim that there is no electricity crisis in the State. He said long-term power purchase agreements were needed to deal with the crisis. He also said the claim that there was no crisis was being used to justify dropping the GNA agreement. The minister was speaking in an interview with Mathrubhumi.

Chief Minister V.D. Satheesan had directed the government to withdraw from the decision to purchase electricity through GNA, a private OTC platform, after the board said there would be no shortage for the next two months. The disagreement began when the board and the Electricity Minister favoured purchasing power from Himachal Pradesh, while the Chief Minister supported the GNA deal. The differences between them have now intensified.

Sunny Joseph had supported the position taken by M.G. Rajamanickam, the then KSEB chairman, that purchasing power from Himachal Pradesh would be cheaper for the State. However, when the file was sent to the Chief Minister for a final decision, the board's proposal was rejected and the government decided to purchase power through GNA. Puneet Kumar, who took the initiative for the agreement, was also appointed Energy Secretary. This further widened the differences between the Chief Minister and the Electricity Minister.

The Chief Minister later decided against proceeding with the agreement after concerns were raised that the GNA deal was not legally valid and would not get the approval of the Electricity Regulatory Commission. 

Excerpts from the interview:

How did the proposal to purchase electricity from Himachal Pradesh come about?

As soon as the electricity crisis emerged, discussions were held at both the KSEB and government levels on how to deal with it. Since Himachal Pradesh had a Congress government, Chief Minister V.D. Satheesan and Congress general secretary K.C. Venugopal intervened. Both spoke to the Chief Minister of Himachal Pradesh. At the time, everyone wanted electricity from Himachal Pradesh. The crisis was avoided because we received power from there.

Is there a crisis? The board says there will be surplus power for two months.

What was the situation yesterday? It rained here, while Delhi experienced cold weather. We purchased 800 MW of electricity. Every day is a matter of concern. We need agreements for at least six months.

When we approached NTPC's Sinnar plant, it said it could supply 300 MW. We later requested two slots of 270 MW each, but no decision has been taken yet.

The 500 MW battery storage project at Mailatty in Kasaragod has also not materialised. The contractor withdrew because battery prices increased in the meantime. The contractor has said that electricity can be supplied only if the current rate is paid instead of the rate agreed upon earlier. All these developments show why we need long-term agreements.

Q. The GNA agreement was dropped on the grounds that there is no electricity crisis?

There is an electricity crisis. We are managing only because of the rainfall. Saying that there is no crisis is an attempt to avoid the GNA agreement.

Q. Why is the GNA agreement being dropped?

I do not know. What I said about learning about it from newspapers is true.

Q. The Chief Minister has reportedly ordered an inquiry into the report of an electricity crisis, saying there is sufficient power available.

I came to know about that from the newspaper as well.

Q. As the department minister, should you not have spoken to the Chief Minister, or should he not have spoken to you?

No, we have not spoken. I will only speak the truth, and I will speak the truth wherever I am.

Q. Were there any lapses in the efforts to secure electricity agreements?

We had tried to secure an agreement for the period from November to May. Sending officials to other States was done after discussions with everyone. The Chief Minister is also aware of these matters. I cannot say anything more.

Q. As the department minister, you could have taken the decision yourself. Why did you send the file to the Chief Minister, saying that electricity from Himachal Pradesh would be cheaper?

This is not an agreement for a short period; it is a long-term agreement. It involves huge expenditure. The department minister cannot take such a decision alone.