India

CPI(M) Calls for Judicial Inquiry Over 200 MW Power Deal in Kerala

By

CPI(M) Calls for Judicial Inquiry Over 200 MW Power Deal in Kerala

In Thiruvananthapuram, the CPI(M) has demanded a judicial inquiry into the procurement of 200 MW of electricity by the UDF government in October, citing allegations of large‑scale corruption and a significant loss to the state exchequer. CPI state secretary M V Govindan said on Sunday that the deal involved corruption, while opposition leader Pinarayi Vijayan accused the government of buying power at a higher rate without following prescribed procedures. Govindan told reporters that the electricity was procured at higher rates without inviting tenders or obtaining the necessary approvals from the Electricity Regulatory Commission and other authorities. He said the purchase was made under emergency provisions without proper consultation. “This is a serious and dangerous development. All files related to the procurement should be made available to the public to ensure transparency,” he said. Govindan referred to differences between the electricity minister and the chief minister over the issue, which he said had become public. He demanded a judicial inquiry, stating that the chief minister was involved in the decision‑making process and that an independent investigation was necessary to bring out the facts. In a Facebook post, Vijayan alleged that the government had purchased 200 MW of electricity from VEH Global at ₹11 per unit without a tender or approval from the commission. He said he had raised allegations of corruption in the deal in a statement on November 10 and that further details had since emerged. Under Sections 62 and 63 of the Electricity Act, power procurement prices must be determined through procedures approved by the commission or through competitive bidding, Vijayan said. However, the decision to purchase electricity from VEH Global in October was based solely on offers, and the commission had not yet approved the arrangement, he alleged. He pointed out that wind power was available at ₹3‑4 per unit, while the government had agreed to purchase electricity at ₹11 per unit, resulting in a huge loss to the exchequer. Vijayan said the government had accepted VEH Global’s offer to supply electricity during peak hours on September 22. He alleged that the government’s earlier orders had stated that the company was not eligible to participate in the tender for electricity supply. “Who was interested in awarding the contract to a company that was not eligible?” he asked. He demanded that the chief minister give the public a clear explanation of the alleged irregularities.

Frequently asked questions

Why has CPI(M) demanded a judicial inquiry into the 200 MW power deal?

CPI(M) alleges corruption, higher rates, no tender, no approvals, emergency procurement, and a significant loss to the state exchequer.

What price difference did Pinarayi Vijayan highlight regarding the power purchase?

Vijayan noted wind power was available at ₹3-4 per unit, while the government agreed to purchase electricity at ₹11 per unit from VEH Global, causing a huge loss.

Related stories