KSEB-KWA tussle over

KOCHI: The long-standing tussle between the Kerala State Electricity Board (KSEB) and the Kerala Water Authority (KWA) over non-payment of arrears by the latter to the KSEB is over with the Lo
Updated on: 
2 min read

KOCHI: The long-standing tussle between the Kerala State Electricity Board (KSEB) and the Kerala Water Authority (KWA) over non-payment of arrears by the latter to the KSEB is over with the Local Self-Government Department taking the decision to pay the arrears in instalments.

The KSEB threat to disconnect power supply to the pumping stations is now over. There were several instances in which the KSEB stopped supplying power to some of the pumping stations, causing differences of opinion between the two departments. Irrigation Minister N K Premachandran told Express that the first instalment of Rs 40 crore will be paid to KSEB this week. As a second instalment, Rs 36 crore will be paid soon.

There was immense pressure from the KSEB to pay the dues after Power Minister A K Balan decided to take stringent action against the power defaulters after the local body elections. KWA was one of the major defaulters.

Balan said the one-time settlement between the KSEB and the KWA to pay Rs 250 crore against an outstanding amount of Rs 1,100 crore was made on condition that the KWA will pay the power bills regularly after March 31, 2008. The arrears mounted and the KSEB was forced to take stringent measures resulting in the payment of the first instalment of the dues. The next instalment is expected soon.

Though the government order was issued last year to pay the dues in five years, steps were taken to pay the first instalment this month only. The additional Plan funds of the Local Self Government Department will be used to pay all the dues of the KSEB in the coming years.

The one-time settlement was made by the KWA after pledging the collection account and the interest for this comes around Rs 39 crore. It has been found that the power bills are increasing owing to the outdated pumps used at the pumping stations. The KWA is on an attempt to reduce power consumption by installing additional equipment.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com