Financial difficulties have started impacting the capital investment plans of the Kerala State Electricity Board (KSEB), according to its own admission.
In its statement for 2014-15 reporting all aspects of its operation, submitted before the State power regulator, the KSEB said that it could not accomplish all the capital investment projects it had planned for the previous year due to financial crunch. The outlay on capital investment in 2013-14 came to Rs.1,521.45 crore, but the target had to be revised to Rs.1,157.95 crore.
The outlay under this head for 2014-15 has been fixed at the level of Rs.1,300 crore, which is a very modest one considering the fact that the KSEB had planned a total capital investment of Rs.8,662.53 crore in power generation, transmission and distribution business during the 12 Five Year Plan period. The KSEB is set to fall far behind its original target after the first three years of the Plan period and bridging the gap during the last two years (2015-16 and 2016-17) may turn out to be a tough task.
In the power generation sector, the target was to invest Rs.419.45 crore in 2013-14, but a sum of only Rs.256.48 crore could be invested, according to the KSEB’s revised accounts for the year. Against an investment plan of Rs.293 crore in the power transmission sector, only Rs.192.47 crore could be spent and, against a target of Rs.800 crore in power distribution sector, only a sum of Rs.700 crore could be used. The outlay on other miscellaneous items of capital investment was Rs.9 crore in 2013-14 and this was fully utilised.
The total capital investment plan of Rs.1,300 crore for the current financial year (2014-15) includes Rs.332 crore in the generation sector, Rs.255 crore in the transmission sector, Rs.700 crore in the distribution sector and Rs.13 crore in miscellaneous areas such as ‘institutional development’, ‘research and development’, ÍT enabled services’ and so on.