KSEB's extra spending on short-term power touches nearly Rs 1,000 crore in two months

7 November 2026

The Kerala State Electricity Board has run up close to Rs 1,000 crore in extra spending on power purchases in two months. A large part of it comes from an agreement for power from Himachal Pradesh at Rs 14.50 per unit, under which Rs 80 crore was paid in the first week and Rs 67 crore in each later week, taking the estimated total to about Rs 300 crore. A second agreement with the private firm VEH Global for up to 200 MW at Rs 11 per unit is estimated at about Rs 40 crore. Neither agreement had the regulatory commission's approval when it was signed, and KSEB applied for approval only later. Even if approval comes, recovering the cost through consumer bills will take time. Contractors have gone unpaid since Onam and retirement benefits have piled up. The board says it needs at least Rs 1,000 crore to come out of the strain.