KOCHI: The abrupt removal of M G Rajamanickam as KSEB chairman at a time when Keralam is grappling with power crisis has raised questions whether differences over a controversial power purchase proposal played a role in the decision.
While sources in the UDF attribute his removal to the decision to purchase power from Himachal Pradesh at a steep rate of Rs 14.50 per unit without prior government approval, a note accessed by TNIE suggests that the differences may have centred on a competing proposal to procure power from a private generator without tender.
The note, which had been under consideration by the government and KSEB, makes a case for continuing the Himachal Pradesh arrangement rather than entering into a round-the-clock power purchase agreement with the private supplier.
In September, amid mounting protests over unscheduled power cuts, sources said Rajamanickam had negotiated an arrangement with the Himachal Pradesh State Electricity Board (HPSEB) to procure electricity at Rs14.50 per unit during peak hours. Keralam began receiving power under the arrangement on October 1, helping it tide over the shortage. Subsequent negotiations reportedly brought the rate down to `12.50 per unit.
Meanwhile, a private power generator approached the government with an offer to supply 500 MW round the clock at Rs 8.645 per unit through General Network Access (GNA), a framework facilitating interstate power transmission.
Sources said this led to differences over the most economical and practical option for meeting the state’s electricity requirements.
Rajamanickam is learnt to have opposed replacing the Himachal Pradesh arrangement with the GNA proposal, arguing that the two offers could not be compared merely on the basis of the per-unit tariff.
KSEB sources said Rajamanickam submitted a detailed note to the government explaining why purchasing electricity at a higher tariff during peak hours would be more economical than procuring comparatively cheaper power throughout the day.
Rajamanickam met minister 10 times in Oct
The note said Keralam’s additional power requirement is mostly confined to the period between 6pm and 2am. Committing to round-the-clock procurement, it argued, would mean purchasing electricity even when additional supply is not required.
The calculations presented in the note estimated that purchasing 500 MW round-the-clock between November and March would cost Rs 1,566 crore, while procuring 800 MW to 1,280 MW during peak hours under the Himachal Pradesh arrangement would cost Rs 1,105.13 crore at Rs 12.50 per unit and Rs 1,281.95 crore at Rs 14.50.
However, the actual financial advantage would depend on the state’s demand pattern and other contractual conditions.
Sources said Rajamanickam met the electricity minister around 10 times in October, stressing the need to formalise an agreement with Himachal Pradesh to ensure continued supply till May 15, 2027. The government reportedly favoured the proposal to procure 500 MW round-the-clock power from the private generator.
While the differing assessments do not establish any wrongdoing, sources said the controversy could intensify demands for more transparency in procurement decisions, especially when the state is struggling to balance electricity availability, consumer interests and financial prudence.