"Power Row" Moves Towards Resolution After Late-Night Cliff House Talks In Keralam

Thiruvananthapuram: The controversy over electricity purchases that had sparked sharp disagreements in Congress-led UDF Government in Keralam, now seems to be moving toward a resolution.

Tensions eased during discussions held at Cliff House, the official residence of the Chief Minister, on Wednesday evening.

V. D. Satheesan, Electricity Minister Sunny Joseph—who is also the KPCC president—and Home Minister Ramesh Chennithala held a closed-door meeting to address various issues, including the power purchase dispute.

During the meeting, the Chief Minister reportedly clarified that he had not held any special session with the Kerala State Electricity Board (KSEB) Managing Director and had only met officials following their routine discussions.

KSEB officials informed the government that there is currently no power shortage, indicating that no additional electricity purchases would be necessary for the next two months.

Power Minister Sunny Joseph did not raise any objections during the talks.

All three ministers agreed to explore the possibility of a new contract that would address future power requirements.

The dispute had earlier escalated after Sunny Joseph stated that he had learned about the withdrawal of the GNA Energy contract only through media reports.

He expressed strong dissatisfaction over the cancellation of the power purchase agreement with GNA and the decision to procure electricity from Himachal Pradesh, which he viewed with suspicion.

The minister emphasized that he became aware of the temporary halt in purchases from GNA solely from news reports, while the power secretary and KSEB chairman had held discussions with the Chief Minister without involving him.

The Chief Minister, however, disputed this claim, stating that the file sent by the electricity board had been forwarded to him by the minister, and once a decision was made, it was returned to the minister, who then passed it back to the Board.

Amid the controversy, KSEB Chairman N. Prasanth met with Sunny Joseph on Wednesday to brief him on the developments so far.

The conciliatory discussion at Cliff House followed thereafter.

The power purchase row originated after KSEB reported that procuring power from GNA Energy would result in an additional financial burden of Rs 726 crore compared to sourcing from Himachal.

KSEB also noted that Himachal's proposal could help mitigate peak-hour shortages.

GNA had offered a round-the-clock supply of 500 MW at Rs 8.48 per unit, while Himachal proposed power at Rs 14.50 per unit, which KSEB hoped to negotiate down to Rs 12.50 per unit.

The Chief Minister noted that, considering average costs, GNA's option would be more profitable for the state even if there is a daytime surplus.

The file forwarded to him by KSEB presented two options: power from Himachal at Rs 14.50 per unit and from GNA at Rs 8.63–8.90 per unit.

KSEB authorities indicated that there would be no power shortage in November and December, though shortages could occur later.

He rejected claims that the government had withdrawn from an agreement, stating, "There was no agreement; without an order, how can we withdraw from one?"

Meanwhile, Home Minister and senior Congress leader Ramesh Chennithala dismissed any reports of differences within the government or the ruling United Democratic Front (UDF).

When asked about the alleged disagreements between Satheesan and Sunny Joseph regarding power purchase issues, Chennithala said, "There are no differences in the Cabinet. Sunny Joseph, the Chief Minister, and I spent several hours together yesterday. There was no argument or disagreement, and no such issues exist."

He added that occasional differences of opinion on certain matters are natural, but there is no lack of harmony within the government or the party.

Earlier, UDF Convenor Adoor Prakash MP had publicly criticized the perceived lack of cohesion within the Cabinet, claiming he was often kept uninformed about key decisions and learned about major developments only through the media.

AICC General Secretary K. C. Venugopal, however, sought to minimize the reported differences among Congress leaders, describing them as a "storm in a teacup."