The Kerala State Electricity Board’s (KSEB)pension liabilities had risen by `3,064 crore following the pay revision.
The state Cabinet has decided that the liability of the Board will be met by the State Government and the Electricity Board on a 35.5:64.6 ratio.
Although the restructuring process of Electricity Board was kicked off years ago, deadlines were extended time and again by successive LDF and UDF governments.
In 2008, the assets and liabilities of the Electricity Board were vested with the State Government.
The deadlines for re-vesting the assets and liabilities into the new company, which was subsequently formed as Kerala State Electricity Board Ltd, were delayed with the State Government extending the deadlines every six months. Meanwhile, several trade unions in the Electricity Board have blasted the move saying that ‘corporatisation’ was against the best interests of the employees and the consumers.
The move will adversely affect the industrial and agricultural sectors and other aspects like pension and appointments, the Kerala Electricity Officers’ Federation said.
The Kerala Electricity Workers Federation (AITUC) demanded a roll-back of the decision as electricity boards in other states that were unbundled have not performed well.