No differences with CM over power procurement, says Sunny Joseph; rules out GNA deal

Kannur: Electricity Minister Sunny Joseph on Friday denied differences with Chief Minister V D Satheesan over power procurement, saying the government had discussed the concerns surrounding the proposed General Network Access (GNA) arrangement and decided against proceeding with it for now.

Responding to reporters in Kannur, Joseph said there was no immediate power crisis in the state, but the government could not afford to ignore the steady rise in electricity demand, particularly during the summer months.

"There was no decision at that time. The media reported it incorrectly. Everything has been resolved through discussion," he said, rejecting suggestions of a disagreement with the chief minister over the proposed procurement through GNA.

Chief Minister V D Satheesan had earlier said the government was exploring the possibility of procuring electricity through GNA at a lower rate. He later clarified that no agreement had been signed.

Explaining the government's position, Joseph said the Electricity Department had examined both the advantages and practical difficulties of procuring power through the platform. Although the quoted rate appeared lower than offers from other sources, the arrangement involved certain conditions, including the requirement to procure electricity during both daytime and nighttime.

"The chief minister has been informed about the differences and practical difficulties involved. As of now, there will be no agreement with GNA," he said.

Joseph also rejected allegations that the Kerala State Electricity Board (KSEB) had exaggerated the possibility of a power crisis to push through the proposed deal. He said the department had only highlighted the state's growing electricity requirements and the need to make advance arrangements.

The minister said the power situation had improved temporarily following rainfall in the state, cooler weather in northern India and the Diwali holidays, which had brought down demand. However, he cautioned that the temporary improvement should not be mistaken for a resolution of the state's long-term power requirements.

The state had recently secured an additional 540 MW of electricity from NTPC following discussions held in New Delhi about a month ago. The meeting was attended by the chief minister, the electricity minister and the company's chairman.

"NTPC has agreed to provide us 270 MW plus another 270 MW. This will help us get electricity at a comparatively lower price," Joseph said.

He stressed that the additional allocation would provide only partial relief and that the state needed more long-term power procurement agreements to meet its summer requirements.

According to Joseph, electricity demand in Keralam has increased by around 1,000 MW compared with the previous year and by nearly 2,500 MW over the past decade. However, the increase in domestic generation has been marginal.

"Over the last 10 years, our electricity demand has increased by around 2,500 MW, but generation has increased by only 150 MW," he said, pointing out that the state continued to depend largely on hydropower for electricity generation.

The minister also said rooftop solar generation alone could not meet the state's requirements, as much of the electricity generated through household solar installations was available during daytime, whereas demand remained high at night.

He said the government was exploring decentralised battery storage projects with the participation of local self-government institutions and cooperative organisations. The state Budget had earmarked ₹100 crore for the initiative.

The government was considering subsidies for such projects and would hold discussions with banks to facilitate loans, he added.

Meanwhile, Leader of the Opposition Pinarayi Vijayan criticised the government's handling of the GNA issue, alleging that Joseph's statements had contradicted the chief minister's earlier claims.

In a Facebook post, Vijayan said the electricity minister had effectively acknowledged that the KSEB had not exerted pressure to procure power through GNA and that the proposed arrangement was impractical.

He reiterated the Opposition's argument that GNA was neither a power producer nor a licensed electricity trader, but merely an intermediary.

Vijayan also alleged that the chief minister's public statements following a Cabinet meeting had been contradicted by a member of the same Cabinet, reflecting differences within the government and a lack of collective responsibility.

He demanded that Satheesan apologise to the people for allegedly creating the impression of an electricity crisis in the state.

(With PTI Inputs)