Power crisis 'engineered' to push privatisation, alleges Kerala Opposition leader Pinarayi Vijayan
Leader of the Opposition Pinarayi Vijayan has alleged that the power crisis in Kerala is part of a wider political effort to hand the State's electricity sector over to private companies, and accused the State government of delaying action despite early indications of trouble.
He was speaking after inaugurating a seminar on 'Privatisation Policies of the Central-State Governments and the Power Crisis', organised by the Kerala chapter of the Electricity Employees Federation of India. Former Power Minister A.K. Balan presided over the function.
Citing national figures, Mr. Vijayan said the country's total power generation capacity is nearly double its peak demand. Private monopolies, he alleged, control about 60 per cent of the country's power generation, and crises are being allowed to develop so that private firms can earn what he called exorbitant profits.
In Kerala, he said, there were sufficient indications of a crisis as early as the first week of June, but the government deliberately dragged its feet. He alleged that the politics behind such crises is similar in the State, where — particularly during United Democratic Front (UDF) tenures — shortages are engineered to undermine the credibility of the Kerala State Electricity Board (KSEB), after which the private sector is presented as a saviour.
"The government is now looking to favour the corporates seeking to gain control of the power sector," he said.
Mr. Vijayan added that privatisation cannot be implemented easily in Kerala, pointing to what he described as strong resistance during the previous Left Democratic Front (LDF) government's tenure. The blame game over the power crisis by the Chief Minister and other Ministers, he alleged, was an attempt to mask their own incompetence and interests.
On regulatory matters, he said the Kerala State Electricity Regulatory Commission (KSERC) cancelled a long-term power purchase agreement because the UDF government led by Oommen Chandy had failed to adhere to established norms, and that responsibility for the current situation lay entirely with the UDF.
He further alleged that construction of the battery energy storage project is progressing slowly, while moves are under way to create room for corporates such as the Adani Group to gain a foothold in the sector.
Referring to a UDF Minister's statement about setting up a nuclear power plant, Mr. Vijayan linked it to the National Democratic Alliance (NDA) government's legislation opening the nuclear energy sector to private players. The recently passed SHANTI Act, he said, would pave the way for private entry into the nuclear sector. He also said the privatisation agenda initiated by the United Progressive Alliance (UPA) government is now being pursued aggressively by the BJP-led government at the Centre.
The charges are allegations made by the Leader of the Opposition and have not been independently verified. The report did not carry a response from the State government or from the Chief Minister's office.
Context
Electricity is a shared subject under India's constitutional scheme, with the Centre framing policy and States handling generation, distribution and regulation through bodies such as the KSERC. Power sector reform has been debated for years, with successive governments at the Centre — under both the UPA and the NDA — encouraging private participation, tariff revision and financial restructuring of loss-making distribution utilities.
Trade unions representing electricity employees, including the Electricity Employees Federation of India, have consistently opposed greater private participation, arguing that it shifts control of an essential service away from public utilities and exposes consumers to tariff volatility. Kerala, which depends partly on power imported from other States, has seen recurring disputes between the KSEB, the regulator and the State government over long-term purchase agreements and the pace of new capacity addition.
Official national data shows that installed generation capacity in the country exceeds peak demand, although the margin narrows during periods of high seasonal demand and is affected by fuel supply, transmission constraints and the financial health of distribution companies. The gap between capacity and dependable supply is central to the current political dispute in Kerala.
