CPM wants abandoned power deal probed

The CPM has demanded a judicial inquiry into the abandoned GNA electricity purchase proposal, accusing Chief Minister V D Satheesan of pursuing an expensive arrangement despite the absence of an immediate power shortage.

Opposition leader Pinarayi Vijayan on Tuesday called for an investigation headed by a High Court judge, alleging that warnings about possible power cuts had been used to justify a deal that could impose substantial costs on consumers.

Vijayan said the government’s decision to abandon the proposed purchase vindicated the opposition’s contention that there was no immediate electricity crisis. He alleged that the administration withdrew only after opposition parties and journalists highlighted discrepancies in the procurement process.

The allegations have not been established by an independent investigation. The government previously rejected suggestions of wrongdoing and defended its initial preference for the GNA arrangement on grounds of price and supply requirements.

CPM state secretary M V Govindan also demanded a judicial investigation, alleging that a group operating under the Chief Minister’s leadership had bypassed ministers while preparing the transaction. He questioned how the proposal advanced despite objections within the electricity administration.

Vijayan accused the Chief Minister’s Office of allowing outside interests to influence the decision. He demanded publication of the procurement files and identification of the supplier whose electricity would have been purchased through the GNA platform.

He further alleged that the government’s decision to examine a report by former Kerala State Electricity Board chairman M G Rajamanickam was an attempt to shift responsibility to officials rather than address questions about the Chief Minister’s involvement.

The controversy intensified after the administration dropped plans to purchase electricity through GNA, having already moved away from an alternative arrangement involving supplies from Himachal Pradesh. Both options had been considered to meet anticipated demand during the months ahead.

Power department Additional Chief Secretary Puneet Kumar and KSEB chairman N Prasanth subsequently informed the Chief Minister that supplies available through existing arrangements and electricity exchanges were sufficient for November and December, removing the immediate need for costly additional purchases.

Their assessment also indicated that electricity demand could be met without scheduled power cuts. The revised position has sharpened questions about the assumptions underpinning the earlier procurement proposals, although a change in demand and market conditions does not itself establish misconduct.

The dispute centres partly on different assessments of price, volume and timing. The GNA proposal envisaged electricity priced at approximately Rs 8.63 per unit, compared with Rs 14.50 under the Himachal option cited by the Chief Minister.

Satheesan had argued that the cheaper quoted unit rate would protect public finances, maintaining that choosing the Himachal arrangement could produce an additional burden of Rs 2,232 crore. That calculation was contested because the proposed volumes and delivery schedules differed significantly.

The Himachal proposal involved approximately 884 million units, primarily intended for periods of high demand, whereas the GNA option covered about 1,812 million units distributed across more hours of the day. KSEB officials questioned the value of buying additional expensive electricity during daytime periods when solar generation could already create surplus supply.

The Chief Minister’s Office previously disputed the opposition’s characterisation of the transaction and argued that the GNA option would provide more dependable electricity during critical evening hours. It also maintained that the Himachal proposal carried pricing and supply uncertainties.

Electricity Minister Sunny Joseph said he learnt of the decision to abandon the GNA purchase through news coverage, adding another dimension to questions about coordination within the government.