Kerala’s power crisis partly due to cancellation of long-term contracts during LDF govt’s term, says V.D. Satheesan
Kerala Chief Minister V.D. Satheesan attributed the state's current power crisis to the cancellation of long-term power contracts by the previous LDF government. He also cited increased demand and poor monsoon rainfall as contributing factors.
Why it matters
The power crisis highlights the intersection of political decision-making, infrastructure management, and climate-related environmental challenges in India.
Kerala Chief Minister V.D. Satheesan on Wednesday blamed the ongoing power crisis in the State partly on the cancellation of a clutch of long-term power supply contracts during the previous CPI(M)-led LDF government term.
These contracts, which took effect during the 2011-2016 Oommen Chandy-led Congress government’s period, had ensured uninterrupted power supply at र4.29 per unit for 25 years. After the cancellation of the contracts (in May 2023 when the LDF was in power), the LDF government had purchased power at per unit-prices of र8 to र14, including from the Adani Group, said Mr. Satheesan, adding that the old low-priced contracts would have stood Kerala in good stead during the present crisis.
“The then Chief Minister (Pinarayi Vijayan) who is now the Opposition Leader has not explained why the contracts were cancelled. The then Power Minister (K. Krishnankutty) also has not explained why,” Mr. Satheesan said.
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