Kerala’s power crisis partly due to cancellation of long-term contracts during LDF govt’s term, says V.D. Satheesan

Kerala Chief Minister VD Satheesan on Wednesday partly blamed the ongoing power crisis in the state on the cancellation of a number of long-term power supply contracts during the previous term of the CPI(M)-led LDF government.

These contracts, which came into force during the 2011-2016 Congress government led by Oommen Chandy, provided uninterrupted energy supply at र4.29 per unit for 25 years. After the contracts were canceled (in May 2023, when LDF was in power), the LDF government purchased electricity at ₹8 to ₹14 per unit, including from the Adani Group, Mr. Satheesan said, adding that the old low-priced contracts would come in handy for Kerala during the current crisis.

“The then Chief Minister (Pinarayi Vijayan), who is currently the Leader of the Opposition, did not explain why the contracts were cancelled. The then Energy Minister (K. Krishnankutty) also did not explain the reason,” Mr. Satheesan said.

On being informed that the Kerala State Electricity Regulatory Commission had canceled contracts totaling 465 MW due to procedural deficiencies, Mr. Satheesan said that CPI(M) leaders were in the commission at that time. He also pointed out that the contracts were canceled eight years after they were signed.

He said the cancellation was “one of the four major reasons” for the ongoing peak-hour power outage in Kerala. He said that other reasons were that the demand increased by 800-1,000 MW compared to last year, the lack of water tanks in the reservoirs for hydroelectricity production due to low monsoon rainfall, and the increase in electricity demand in the market across the country due to hot weather due to El Niño.

“Storage in reservoirs is currently only 28% compared to 61% in the same period last year,” Mr. Satheesan said. He added that compared to 2024-25, Kerala recorded an increase of 10 million units (mu) in daily consumption.

About power restrictions

He also harshly criticized the Opposition LDF’s accusations against the UDF government regarding the electricity restrictions imposed in the state. “Would any new government, when it comes to power, consciously allow the people to remain in the dark for an hour?” he asked.

The Prime Minister’s comments on the issue come at a time when power cuts are imposed after 6 pm in Kerala.

Electricity Minister Sunny Joseph had stated last week that the state currently faces an availability gap of 500 to 600 MW. Mr Joseph said unavoidable circumstances had forced the State government to impose electricity restrictions on a “limited scale” and attempts were being made to overcome the crisis.