"No contract signed with GNA energy": Keralam CM Satheesan rejects withdrawal reports, promises permanent solution to power crisis

"There is no contract at all. When asked which is the better option between these two options, it was said that this is the option because less money needs to be paid. It was not said to place an agreement. It was said to inquire there," Satheesan said.

Keralam Chief Minister VD Satheesan on Wednesday rejected reports that the state government had withdrawn from a proposed power procurement arrangement with GNA Energy, clarifying that no formal contract or agreement had been signed with the company. He also announced that the state Cabinet had recommended convening an Assembly session from November 30 to December 10 to take up pending bills and new legislation.

Addressing a press conference after the Cabinet meeting, Satheesan said the government had only evaluated available electricity procurement options and had not issued any order or entered into a formal agreement with GNA Energy. "There is no contract at all. When asked which is the better option between these two options, it was said that this is the option because less money needs to be paid. It was not said to place an agreement. It was said to inquire there," Satheesan said.

Explaining the options considered by the government, he said proposals had been examined for purchasing electricity from Himachal Pradesh at Rs 14.50 per unit and from GNA Energy at rates of Rs 8.63 and Rs 8.90 per unit. He said the Himachal Pradesh option was no longer available after the electricity was committed to Rajasthan at Rs 15.50 per unit. Following a comparison, GNA's proposal was found to be a cheaper alternative. However, the government subsequently decided that an immediate agreement was not necessary after being informed that there would be no power shortage during November and December.

The Chief Minister further said electricity for April and May could be procured from NTPC's Sipat plant at Rs 5.18 per unit, making the GNA option comparatively expensive for those months. "When we get electricity at Rs 5.18 per unit, do we need GNA in April and May to buy it earlier at Rs 8.63 and Rs 8.90? So that was changed and removed on that day itself. Wherever it is obtained at a lower rate, electricity will be bought at the best lower rate," he said.

Satheesan also blamed the previous government for failing to enter into long-term power purchase agreements when electricity prices were lower, alleging that excessive dependence on short-term purchases had contributed to the state's power crisis. He said the present government was working towards a permanent solution through short-term and long-term procurement agreements, renewable energy generation and battery storage infrastructure.

"We are telling you that our government will find a permanent solution to this very month. We will enter into short-term contracts and long-term contracts. The state will buy the cheapest electricity," he said. On the legislative front, Satheesan said the Cabinet had recommended to the Governor that the Assembly session be convened from November 30 to December 10 to pass pending bills and introduce new legislation.

The Cabinet also approved a report detailing the action taken and proposed on recommendations of the Kerala State Commission for Economically Backward Classes among Forward Communities. The report, including reasons for not accepting certain recommendations, will be tabled in the Assembly. Additionally, the Cabinet decided to provide a new compensation package in connection with the construction of the Kasaragod-Wayanad 400 kV power transmission line.

These were among the key decisions announced following the Cabinet meeting. (ANI)