Kerala power deal: Minister Sunny Joseph opposed GNA contract, contradicting CM's stand

Thiruvananthapuram: Electricity Minister Sunny Joseph had also opposed purchasing power through private platform GNA Energy, according to information that has now emerged. In a letter to the Chief Secretary dated October 19, the minister said that both the Kerala State Electricity Board (KSEB) and the Energy Department favoured purchasing electricity from Himachal Pradesh.

The minister's position contradicts the arguments put forward by Chief Minister V.D. Satheesan in support of the GNA deal.
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Three key objections raised by the minister

In his letter, Sunny Joseph cited three main reasons for preferring the Himachal Pradesh power deal:

1. Availability during peak demand: Most of the electricity from Himachal Pradesh would be available during peak-demand hours. The supply would also continue during April and May, when Kerala could face a power shortage. In contrast, the GNA deal would provide electricity only until March.

2. Financial considerations: The Himachal Pradesh deal was also considered economically more advantageous. GNA offered electricity at Rs 8.48 per unit, which might appear attractive compared with the Rs 14.50 rate quoted for Himachal Pradesh. However, a substantial portion of the GNA supply would have to be purchased during daytime hours, when KSEB does not need additional power. The board is already surrendering surplus electricity during these hours.

3. Lack of clarity on the deal: The minister said several details about the power supply through GNA were unknown. These included formal offers from the companies supplying electricity through the platform, the locations where the power would be generated, assurances of reliable supply and the complete terms of the contract.

The minister wanted his note to be forwarded to the Chief Minister so that a decision could be taken before October 22. If no decision was made by then, the Himachal Pradesh Power Corporation would enter into agreements with other states.

However, when the Chief Minister decided to purchase electricity through GNA, Sunny Joseph said recently that he had no disagreement with the decision.
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Government maintains its position on night-time power supply

The Chief Minister's Office continues to maintain that the GNA agreement would provide more electricity during night-time hours.

In a note submitted to the government on September 19, former KSEB chairman Dr M.G. Rajamanikyam provided figures for the electricity available from Himachal Pradesh between 6.30 pm and 10.30 pm each month.

The figures were as follows:

- November: 719 MW

- December: 402 MW

- January: 213 MW

- February: 193 MW

- March: 378 MW

According to these figures, the available supply from Himachal Pradesh was lower than the 500 MW promised through GNA during four of the five months.

However, Rajamanikyam had clarified that these figures were averages calculated across different time blocks and were not exact availability estimates.

Subsequent notes submitted by the minister and KSEB indicated that Himachal Pradesh could supply between 864 MW and 1,280 MW during peak-demand hours.

Rajamanikyam's main objection, however, was not about the availability of electricity. He had primarily questioned the decision to enter into a contract involving such a large financial commitment without inviting tenders.