Wednesday, Mar 27, 2002
Wednesday, Mar 27, 2002 |
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Kerala
By Radhakrishnan Kuttoor
There were large-scale apprehensions among the sane elements in the KSEB and its well-wishers that the ongoing clamour over its losses were part of a hidden agenda, presumably conceived by the Government and certain top ruling party leaders to facilitate the privatisation of one of the best State electricity boards in the whole country. Not only the present Antony Government but the former LDF and UDF Governments were also primarily responsible for the current KSEB crisis.
CM owes Rs 8.87 crore
As per the KSEB revenue records, the pending arrears from various Ministry departments to the KSEB alone was Rs 75,15,85,534 as on December 31, 2001. Records show that the offices under the Chief Minister, A.K.Antony, themselves owe Rs 8,87,17,784 as arrears to the KSEB as on December 31, 2001 (see Box-1). Similarly, the arrears of 35 major defaulters (above Rs 50 lakhs) in the private sector alone has accumulated to the tune of Rs 70,58,56,431 as on March 23, 2002 (see Box-2). The arrears of various public sector undertakings that include the Kerala Water Authority, TCC Ltd, Aluva, Steel Complex Ltd, Feroke, Malabar Cements, etc., as on December 31, 2001 is Rs 1,47,65,70,973 (see Box-3). Official records show that the total arrears pending to the KSEB from various HT and EHT consumers alone have been estimated at Rs 504.08 crores. The Chief Minister and the Electricity Minister who often complain about the sad plight of the KSEB have taken no steps to recover the hefty pending arrears from various private and public sector companies even at this time of financial crisis, for reasons best known to them. Whose interests are being served by the inaction of the board and the Government in recovering the arrears, asks M.Sukumara Pillai, veteran trade unionist and general secretary of the Kerala Electricity Workers Federation.
Poor management
Lack of a professional and technical management is also said to be a major handicap of the KSEB, allegedly owing to the political appointments to the board by the changing Governments. It is alleged that the board is being controlled by bureaucrats on deputation from other departments with little experience in the power sector. Experts say that unlike in the previous years, the ongoing power generation to the maximum possible limit in the hyydel power projects would lead to drying up of reservoirs by the first week of May itself . Many board officials who spoke to The Hindu have expressed the opinion that the crisis was the creation of certain vested interests who wanted to land the KSEB in deep waters and thereby facilitate grounds for its privatisation. At least, this is what the board's inaction towards the speedy recovery of its hefty arrears indicate, allege senior board officials.
Power thefts
The board has taken no sincere measures to check the hefty revenue loss to it by way of electricity thefts, allegedly being masterminded by various private business establishments having the strong patronage of leaders belonging to both ruling and opposition parties. Three months ago, the Electricity Minister, Kadavoor Sivadasan, had announced that those who were involved in electricity thefts would be dealt with strictly. Ironically, a few KSEB officials who had taken the Minister's words in letter and spirit had reportedly found themselves in trouble when they conducted raids at a few households in the capital's posh PTP Nagar a few weeks ago. Among those who were caught red-handed included the relative of a Congress MLA who was fined Rs 26,000 for the crime. However, the official who headed the raid was transferred in the next few days, allegedly due to political pressure. Four other KSEB officials who had conducted similar raids recently in different parts of the State too had to face transfers. Certain top KSEB sources told The Hindu that the State Government had signed an MoU with the Central Government due to which ``urgent reforms in the board have become inevitable. As per the MoU, the board has to be reorganised into three profit centres for generation, transmission and distribution. The State Electricity Regulatory Commission has to be constituted and 100 per cent metering ensured.'' The average monthly revenue of the KSEB after the 25 per cent tariff hike in August, 2001 is Rs 160 crores. The KSEB top brass say that this is hardly sufficient to meet the revenue expenditure and day-to-day administrative expenditure. The board has to spend Rs 35 crores on a monthly basis towards pay and allowances, Rs 15 crores towards pension, Rs 140 crores for power purchase, Rs 80 crores towards debt service, Rs 10 crores on fuel, Rs 4 crores for repair and maintenance, Rs 5 crores as administration expenditure and Rs 1 crore on generation of power. The board has to become profitable and a financially viable organisation, says A.Ponnamma, retired KSEB finance officer. ``To be profitable, the KSEB should be able to show three per cent revenue surplus or 16 per cent return on its equity capital of Rs 1,553 crores. Regarding purchase and sale of power, the average loss is Rs 1.13 per unit of power sold.'' ``So, KSEB has to reduce its expenditure on purchase of power from costly thermal stations like the BSES, KPCL and the NTPC, Kayamkulam. This can be done by giving backing down instructions to these generating companies whenever necessary '' said the former financial officer.
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