Published Nov 11, 2026 | 2:13 PM ⚊ Updated Nov 11, 2026 | 2:13 PM
Electricity
Chief Minister VD Satheesan has alleged that attempts were made to pressure him into approving an electricity purchase agreement with GNA Energy by projecting an imminent power crisis in Keralam.
He said he refused to sign the file without examining the actual requirement and available alternatives, and asserted that no contract had been signed with the private power supplier.
Explaining the controversy at a media briefing after the Cabinet meeting, Satheesan said a file forwarded to his office by the Electricity Minister had presented two options for procuring power — from Himachal Pradesh at ₹14.50 per unit and from GNA Energy at ₹8.63 and ₹8.90 per unit.
The file indicated that the electricity offered through Himachal Pradesh had already been committed to Rajasthan, leaving GNA as the available alternative.
A comparison of the quoted rates showed GNA to be the cheaper option, but the Chief Minister said he had directed officials to examine whether the additional power was actually required before proceeding with any agreement.
Also Read: Unpacking Keralam’s GNA row: The deal, Himachal offer and the questions in between
“I am not someone who will sign a file simply because someone sends it with a demand for an immediate decision,” Satheesan said, alleging that the possibility of prolonged power cuts from November 1 was used to create pressure on him.
He said the first report submitted by the KSEB, indirectly mentioning that it was during the tenure of former chairman M.G. Rajamanickam, had warned of a serious power shortage and the possibility of long-term restrictions from November.
However, a subsequent team reassessed the situation and reported that such a crisis was not anticipated in November and December.
The Chief Minister said the government had consequently decided against procuring power from GNA for the immediate period.
He added that NTPC had offered to supply electricity at ₹5.18 per unit for April, making the proposed GNA arrangement unnecessary for April and May.
“We will purchase electricity from whichever source offers the most economical rate,” he said, adding that the government was considering both short-term and long-term power purchase arrangements to meet the state’s requirements.
Satheesan also blamed the previous LDF government for the present power procurement difficulties, alleging that it had failed to secure adequate long-term agreements when electricity was available at lower rates.
He described the failure to plan ahead as a serious lapse and said Keralam had become increasingly dependent on buying power from outside the state over the past decade.
Pointing to the state’s limited generation capacity, he said only around 15 percent of its electricity requirement was met through domestic production.
He also criticised the lack of investment in battery storage facilities, which could have helped preserve surplus electricity for use during periods of high demand.
The Chief Minister maintained that the government would not enter into an agreement merely on the basis of projections of a shortage.
However, he did not clarify whether a separate investigation would be ordered into the conflicting KSEB assessments, particularly the initial report warning of an impending crisis.
The controversy over the proposed GNA deal has brought the power procurement process, the reliability of KSEB’s demand projections and the state’s preparedness to meet future electricity requirements under renewed scrutiny.
(Edited by Sumavarsha, with inputs from Dileep V Kumar)
