KSEB’s pension liability mounts to Rs 29,000 cr; to rely on bonds to meet expense

SN Jayaprakash

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Representative Image | Photo: Mathrubhumi

Thiruvananthapuram: The pension liability of KSEB has risen from Rs 12,419 crore (2013 estimate) to Rs 29,657 crore (till March 31, 2021). The latest figures show that liability increased by Rs 17,238 crore.

To meet its share, KSEB would need to issue bonds to its ‘master trust’. KSEB in this regard has approached the government for its nod.

KSEB maintains that if the government does not take a favourable stand, then it will affect the pension distribution in 2025-26.

In the wake of increased burden, the electricity tariff may be hiked to mitigate the crisis.

The master trust was constituted to transfer pension benefits of the employees. Both KSEB and the state government need to make allocations to the trust.

During 2013, bonds were issued to find KSEB’s allocation of Rs 11,800 crore. The government also allowed the KSEB to hold the money collected from the consumers for a period of 10 years. This condition expires in 2023 and KSEB has sought an extension of the same.

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