Thiruvananthapuram: Even as the state is reeling under a major financial crisis, the government has been forced to take up the responsibility for 75 percent of the loss incurred by the KSEB.
The state government took up the responsibility for Rs 767 crore to meet the agreement with the central government for borrowing money. The government expects to borrow an additional amount of almost Rs 5,000 by taking up a part of KSEB's losses.
While taking up the KSEB's losses, the finance department has asked the Board not to hike its employees' benefits and to improve its performance.
The Centre allows those states with better performance in the energy sector to borrow 50 per cent more of the GSDP. This is allowed based on the recommendations of the 15th Finance Commission.
It has also mandated the state government to take up a specific percentage of KSEB's losses to avail of additional loans.
