Kochi: Power shortage and mismatch in revenue receipt and expenditure has created a grim situation for Kerala State Electricity Board (KSEB), media reports quoting its chief Biju Prabhakar said.
KSEB is in deep financial crises and it should explore new venues to find a solution to the problems, Prabhakar said in the reform proposals provided to officers’ organizations at a meeting held the other day.
Associations were asked to provide feedback including restructuring of KSEB employees before December 10.
KSEB is taking overdrafts of Rs 400 crore at high interest rates per month to meet its daily expenses. The average monthly revenue is ₹1,750 crore, while the expenditure is ₹1,950 crore, he said.
A total of ₹900 crore was needed to purchase electricity, while ₹300 crore was required to repay loans every month, he said.
There was a shortfall of 500 MW power on three days and 1,000 MW on one day since the start of the monsoon this year, reports quoting Prabhakar said. This signaled a grim power situation in Kerala in the coming years.
The cost of importing electricity this year was expected to be Rs14,000 crore.
He suggested that Investments and bonds should be raised from KSEB employees, industrial consumers, and the public by setting up a public-private partnership model on the lines of ‘CIAL’.
Profits could be shared with investors from the third year onwards. Preference will be given to local bodies, cooperative banks, and startups for implementation of small hydroelectric projects below 25 MW,
For projects above 25 MW, funds should be raised from other sources. The projected cost for implementing the planned projects within the next seven years is ₹45,000 crore.
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