Power Minister Aryadan Mohammed on Tuesday reiterated that the KSEB would be retained as a single company under government control and denied the allegation that the restructuring would lead to hike in power tariff.
In a statement here, Aryadan said that the last Cabinet meet had merely approved the re-vesting of assets and liabilities of the Board into the new company KSEB Ltd. There is no move to divide the KSEB into three companies. It will remain a single entity, he said.
“The government has not made any move to privatise the KSEB. The UDF Government is only completing the restructuring process started by the previous government. So, it is not true that the UDF has gone back on decisions taken previously,” he said.
The Minister denied that the restructuring would lead to tariff hike.
“Section 65 of the Electricity Act empowers the government to decide which all categories can be exempted once the Electricity Regulatory Commission fixes the tariff. Nowhere is it said that this power will be lost once the KSEB becomes a company. The government will still have the power to provide subsidies,” he said.