The Kerala State Electricity Board (KSEB) has decided to introduce austerity measures citing an ''emerging financial situation'' where the power utility is likely to face a financial crunch in the near future.
For the time being, the KSEB director board has recommended cost-cutting measures till March 31, 2023, which include slashing capital investment across all verticals by 15% and avoiding all forms of unnecessary expenditure.
B. Ashok, Chairman and Managing Director (CMD), KSEB, had recommended ‘‘restructuring proposals’‘ over the 2022-23, 2023-24 and 2024-25 fiscals for curtailing ‘‘postponable’‘ expenses in capital investment, new posts, purchase of passenger vehicles and construction of new office buildings. The director board’s decision came on this proposal.
Commitments pertaining to electricity duty payable by the KSEB to the government, mounting employee costs, and pension and power purchase liabilities are expected to add to the burden in the coming years, a senior KSEB official said.
Data submitted by the Power department in the Assembly reveal that government offices and public sector institutions have run up power bill arrears to the tune of ₹1,352 crore (till March 31, 2022). The Kerala Water Authority alone owes ₹996.90 crore.
As per a July 5 order on the cost-cutting measures, outlays under the capital investment plan for the 2022-23 fiscal will undergo a review by the KSEB directors. This will apply to all projects except Central sector schemes and externally aided projects.
Elaborate inaugural functions will be held only for projects/constructions having a capital outlay above ₹3 crore. Smaller projects will be inaugurated by the chief engineer concerned by cutting a ribbon. Public functions and advertisements will be avoided in such cases.
Official meetings will be conducted in videoconference mode from now on. The KSEB has also decided to defer the purchase of new passenger vehicles and construction of office buildings as part of the belt-tightening measures.
