Thiruvananthapuram: Chief Minister V.D. Satheesan has said that purchasing electricity from Himachal Pradesh would place an additional financial burden on Kerala, prompting the government to opt for a private company offering power at a lower rate.

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Satheesan also pointed out that the previous LDF government had purchased electricity from private companies during its tenure. He was speaking at a press conference following the Cabinet meeting.

"Two files came before me. One proposed purchasing electricity from Himachal Pradesh at Rs. 14.50 per unit, while the other proposed buying power from a private company, GNA, at Rs. 8.63 and Rs. 8.90 per unit. This is not a direct transaction with the government but is routed through the Power Trading Corporation.

"If we had purchased electricity from Himachal Pradesh, the government would have incurred an additional liability of Rs. 2,232 crore. We cannot shoulder that burden, which is why we decided to purchase power from GNA. During peak hours, Himachal Pradesh would supply 353 million units, while GNA would provide 453 million units," the Chief Minister said.

Satheesan also dismissed allegations that the removal of the KSEB chairman was intended to facilitate the purchase of electricity from a private company, describing it as a routine administrative decision.

"The removal of the KSEB chairman is a routine procedure. It was not just one person who was removed; several senior officials have also been transferred. The Leader of the Opposition alleged that this was done to facilitate the purchase of electricity from a private company.

"However, when he was Chief Minister, electricity was purchased from the same company, GNA, in 2025. During his tenure, very little electricity was procured from NTPC, with the rest being purchased from private companies. I have a list of several companies from which power was bought during that period, including Jindal, Adani and GNA.

"Electricity has also been purchased from private companies over the past two months. KSEB procures most of its electricity from private companies," Satheesan said.