The Kerala government has approved the release of ₹494.29 crore to the Kerala State Electricity Board (KSEB) as part of taking over 90% of the latter’s losses for the 2023-24 fiscal.
The State government had given an undertaking to the Union government in this regard so as to avail of additional borrowing space linked to power sector reforms.
The KSEB had incurred a loss of ₹549.21 crore in 2023-24.
For availing of additional borrowing space, the State government is required to take over 90% of the losses incurred by public sector distribution companies, in this case, the KSEB. The Kerala government had, in its undertaking, agreed to take over the “future losses” of the KSEB “in a graded manner” in this regard.
Presenting the State’s wish list at a pre-Union Budget discussion convened by Union Finance Minister Nirmala Sitharaman at Jaisalmer on December 20, Kerala Finance Minister K.N. Balagopal had urged the Centre to extend the additional borrowing of 0.5% of the gross state domestic product (GSDP) tied to power sector reforms to 2025-26, the final year of the 15th Finance Commission.
Published – December 27, 2024 03:31 pm IST
