KSEB will get Rs 1, 000 cr only if its alternative against Centre's TOTEX model works out

New Delhi: The Kerala State Electricity Board (KSEB) is unlikely to receive financial aid from the Centre due to a delay in implementing the prepaid smart electricity meter project in the state.

Earlier, the Kerala government decided not to pursue the TOTEX (total expenditure, including capital and operational expenditure) model recommended by the Centre to establish smart meters in households across the state. As a result, the project came to a halt, prompting the central government to hold its Rs 1000 crore financial assistance to KSEB. 

During a Power Sector Review, Planning, and Monitoring (RPM) meeting with Power / Energy Secretaries and CMDs / MDs of all distribution companies (DISCOM) on Friday, the Centre warned they would only sanction financial aid to KSEB if they could successfully ensure the effectiveness of the new scheme/model envisaged for the project. The Centre was referring to the alternative model put forth by the state government to implement the project. 

Meanwhile, KSEB also lags behind in the rankings of wholesale distributors, largely due to its failure to implement the smart meter project and mounting electricity bill arrears. KSEB received a B+ in the latest rankings. 

KSEB's power bills arrears of various institutions are around Rs 5000 crores. Despite introducing various measures, including one-time settlements, KSEB struggled to recover the sum.

Meanwhile, the Centre has recommended the TOTEX model by pledging to grant funds upfront to cover the initial expenses of the project. For the same, the state will have to purchase electric meters from companies recommended by them. However, the state government opted not to pursue the TOTEX model due to opposition from the trade unions, who alleged that the Centre is trying to privatise KSEB.