The UDF government has decided to abandon its proposed short-term power purchase arrangement with GNA Energy, following Chief Minister V.D. Satheesan’s change in position on the issue. In a significant shift from his earlier support for the proposal, Satheesan has questioned the urgency of the Kerala State Electricity Board’s (KSEB) recommendation, raising concerns over the assessment that the state was facing an immediate power shortage. The reversal appears to be an attempt to contain the political controversy surrounding the procurement decision, but it has also exposed differences within the government.

The Chief Minister’s latest remarks have placed Electricity Minister Sunny Joseph in an uncomfortable position, as the proposal had been forwarded to the Chief Minister with the minister’s approval. By expressing doubts about the urgency highlighted by KSEB, Satheesan has indirectly questioned the basis on which the Electricity Department moved ahead with the procurement plan. This could create friction between the Chief Minister’s Office and the minister, particularly as the latter had endorsed the utility’s assessment.

Explaining his decision, Satheesan said the file submitted to him contained two procurement alternatives. One involved purchasing electricity from Himachal Pradesh at Rs 14.50 per unit, while the other proposed sourcing power through GNA Energy at a comparatively lower rate of Rs 8.63 to Rs 8.90 per unit. Although the GNA arrangement appeared financially more favourable, he maintained that the government needed a clearer understanding of the state's immediate electricity requirements before proceeding with the purchase.

Satheesan also pointed out that he had not approved the proposal despite KSEB's warning about the possibility of prolonged power restrictions from November 1. He indicated that any decision to impose power cuts would ultimately have political consequences for the government, with the Chief Minister likely to face public criticism for failing to ensure uninterrupted electricity supply. He maintained that he had exercised caution rather than approving the purchase solely on the basis of the utility's recommendation.

Further complicating the issue, Satheesan said the assessment made by the former KSEB chairman regarding the possibility of imminent load shedding required closer examination. This statement has raised questions about the credibility of the warning that was used to justify the urgency of additional power procurement.

However, the Chief Minister's position also suggests that the government cannot entirely avoid fresh electricity purchases. He acknowledged that additional power would have to be sourced depending on demand and indicated that the government was preparing to enter into both short-term procurement arrangements and longer-term power agreements. He reiterated that future purchases would be guided primarily by cost considerations, with the government seeking the most economical available options.

Meanwhile, the Electricity Minister's camp appears reluctant to intensify the disagreement despite the implications of the Chief Minister's statements. Concerned that an open confrontation could further damage the government's position, those close to Sunny Joseph have reportedly decided not to escalate the matter. Nevertheless, Satheesan's reversal has left the minister politically vulnerable, while also raising questions about coordination between the Chief Minister's Office and the Electricity Department in handling the state's power requirements.