THIRUVANANTHAPURAM: The state government has sanctioned Rs 767.71 crore as assistance towards Kerala State Electricity Board (KSEB)’s loss incurred during 2022-23. The state government has issued orders according to permission to take over 75% of the loss incurred by the board which would help the entity avail additional borrowing limit of 0.50% of Gross State Domestic Product (GSDP) linked to performance in power during the fiscal year 2023-24.
The board had borrowed Rs 500 crore during last December and another Rs 200 crore this month which helped the entity pay salary and pension. The KSEB had already sought the help of the state government during its meeting with the chief minister during the last week. Following the model code of conduct coming into effect on March 16, the Rural Electrification Corporation backed out from lending loan.
A power ministry official told TNIE that power distribution licensees who have dues are not permitted to receive loans from public sector banks as per prudential norms.
“It was feared the board will be unable to meet the salary and pension as well as difficulty in paying advance amount to power exchange. These would have resulted in the state going dark. It was at this juncture that the state government came forward to bear 75% of the loss incurred by the board,” said a power department official.
With the state government coming out with the GO, both the board and state have been saved.