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Ulterior motive in UDF govt. push for power purchases from private trading platform overriding KSEB objection: Elamaram Kareem

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India Latest News: Top National Headlines Today & Breaking News | The Hindu

November 5, 2026
Ulterior motive in UDF govt. push for power purchases from private trading platform overriding KSEB objection: Elamaram Kareem

CPI(M) leader Elamaram Kareem has alleged that the UDF government bypassed KSEB objections to approve costly power purchases from a private platform. The EEFI is now demanding an independent probe into this financial decision and delays in smart meter implementation.

Allegations of Irregularity in Kerala Power Procurement

The political landscape in Kerala has been recently stirred by serious allegations concerning the state's electricity procurement strategies. CPI(M) leader and Electricity Employees’ Federation of India (EEFI) national president, Elamaram Kareem, has publicly questioned the UDF government's decision to bypass the Kerala State Electricity Board (KSEB) in order to facilitate power purchases through a private trading platform, specifically GNA Energy OTC.

The Financial Impact of Bypassing KSEB

At the heart of the controversy is the fiscal burden placed on the state exchequer. According to Mr. Kareem, the decision to procure 500 MW of electricity at a rate of ₹8.63 per unit creates an unnecessary and significant financial liability. Estimates suggest that this procurement method would cost the state an additional ₹727 crore compared to standard procedures. By ignoring the technical and financial objections raised by the KSEB—the state's statutory authority for power management—the government faces accusations of disregarding established fiscal oversight mechanisms.

Strategic Inefficiency and Peak-Hour Concerns

Beyond the immediate financial cost, the EEFI has raised concerns regarding the operational efficacy of this deal. The claim is that the power sourced from the GNA Energy OTC platform is fundamentally ill-suited to address the state's critical peak-hour electricity demand. If the procured energy fails to stabilize the grid during high-stress periods, the state not only incurs a high price but also suffers from a lack of reliable power supply, effectively negating the rationale behind such a high-cost procurement.

The Smart Meter Implementation Delay

Adding to the growing list of grievances is the unexplained delay in the Phase II roll-out of smart electricity meters in Kerala. The smart meter initiative is widely regarded as a key component of modernizing the state's power infrastructure, aimed at reducing transmission losses and improving billing accuracy. The EEFI's demand for an independent probe links this delay directly to the broader mismanagement of power sector policies by the current administration.

Demands for Transparency and Accountability

The EEFI, representing a significant body of electricity sector workers, is calling for an independent inquiry into these administrative decisions. By highlighting the tension between the government’s push for private platform engagement and the KSEB’s internal professional advice, the union is positioning this issue as a matter of public accountability. As the situation evolves, the core question remains whether the government can justify the deviation from the KSEB’s expert recommendations in light of the documented financial and operational risks.

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