Kochi: Kerala may lose out on grants worth Rs 9000 crores due to its decision to pull out of the smart meter project. It should be noted that Kerala had submitted a proposal of projects worth Rs 11,000 crores for carrying out the second phase of renovation in the distribution sector. With the state’s current stand on ‘smart meters’, the centre may decline funding for all these projects. 

To be precise, due to the decision, Kerala is bound to lose Rs 2,600 crores allocated for the smart meter project and Rs 6,600 crores allocated for carrying out the second phase of renovations in the distribution sector. It should be noted that the whole amount falls under the category of grants which need not be paid back.   

By losing out on such massive funding, the debt ridden Kerala government and the KSEB board will find themselves in deep trouble.

Kerala has pulled out of the smart meter project alleging privatisation. But due to the decision, Kerala will lose out on all the projects which come under the revamped distribution sector scheme as well. Tough days await the KSEB. 

Kerala had submitted the proposal of projects worth Rs 11,000 crores for carrying out renovations (second phase) in the distribution sector, when it was already allowed Rs 10,475 crores for the implementation of the smart meter project. However with the ongoing tussle between the union and the state government, the future looks bleak for the electricity consumers in the state.

The money spent on renovation works of a state electricity board over the last five years, is usually compensated by the centre in a span of two years, with grants up to 60 percent.