Vijayan Alleges Power Crisis Engineered to Push Privatisation in Kerala

Leader of the Opposition Pinarayi Vijayan has alleged that the power crisis in Kerala is part of a covert political effort to transfer the power sector into private hands. He was speaking after inaugurating a seminar on privatisation policies of the central and state governments and the power crisis, organised by the Kerala chapter of the Electricity Employees Federation of India.

Mr. Vijayan said the country's total power generation capacity is nearly twice its peak demand, yet private monopolies control about 60 per cent of power generation. He alleged that crises are being manufactured so that private firms can earn exorbitant profits.

Turning to Kerala, he said the government had clear indications of a crisis by the first week of June but deliberately delayed action. He alleged that such crises have been engineered in the past, particularly during UDF tenures, to undermine the credibility of the Kerala State Electricity Board, after which the private sector is projected as a saviour. The government, he claimed, is now seeking to favour corporates eyeing control of the power sector.

Mr. Vijayan said the Kerala State Electricity Regulatory Commission cancelled a long-term power purchase agreement because the UDF government led by Oommen Chandy had failed to follow established norms, and that responsibility for the present crisis rests entirely with the UDF. He also alleged that the Chief Minister and other Ministers were trading blame to mask their own incompetence and interests.

He pointed to the slow progress of a battery energy storage project and alleged that moves were afoot to help corporates such as the Adani Group gain a foothold in the sector. A UDF Minister's talk of setting up a nuclear power plant, he said, is linked to the NDA government's legislation opening the nuclear energy sector to private players, with the recently passed SHANTI Act paving the way for private entry.

Mr. Vijayan added that the privatisation agenda begun under the UPA government is now being pursued aggressively by the BJP-led government at the Centre. He cautioned that privatisation cannot be implemented easily in Kerala, citing the strong resistance mounted during the previous LDF government's tenure. Former Power Minister A.K. Balan presided over the function.