KSEB owes police dept over 126 crore

Time of India

a day ago

Thiruvananthapuram: In a curious turn of events, Kerala State Electricity Board Ltd (KSEB) now finds itself in the red—not for unpaid power bills by others, but for dues it owes the police department.
After a detailed reconciliation of long-standing mutual claims, the finance department ruled that KSEB must pay Rs 126.86 crore to the police, primarily for security services provided at vital power installations across the state.
The development comes at a time when electricity bills are burdening not only the public but also govt departments. With rising power consumption—largely driven by the widespread use of air conditioners—several departments are struggling to pay their KSEB bills.
In some cases, the situation has even started affecting public service delivery. For instance, agriculture department's scheme to provide subsidised power to eligible farmers was impacted due to the department's mounting KSEB dues.
In this instance, KSEB itself defaulted on payments to the police department for years for protection services at the electricity utility's high-security installations like hydroelectric dams and power stations, which are guarded round the clock.
These installations have long been on the state's critical infrastructure list, with agencies like intelligence bureau in 2021-22 warning that Idukki dam and similar sites could be targets for sabotage attempts, underscoring the need for continued, high-level surveillance.
As per govt data, Rs 30.56 crore in KSEB's dues remained unpaid since prior to March 31, 2004—a liability that lingered for over two decades.
Between 2004 and 2013, another Rs 46.56 crore was added as unpaid bills. From 2013 to 2023, the dues swelled to Rs 115.67 crore, including adjustments for govt's periodic revision of service charges meant to enhance non-tax revenue collection.
As of March 31, 2024, KSEB owed the police department Rs 204.87 crore. But police too had outstanding dues to KSEB—particularly for power consumption. Notably, police department failed to pay its power bills for the entire 2023-24 financial year, and between 2004 and 2013, it accumulated Rs 60.34 crore in arrears.
With both departments owing each other significantly, the matter was escalated to the finance department. After examining data from both sides, applying interest and multiplier factors for arrears and revised service rates, finance department settled the standoff. The final verdict: KSEB, after adjustments, still owes Rs 126.86 crore to the police.
While the outcome may seem unusual, it highlights a lesser-known aspect of inter-departmental functioning where govt entities not only consume each other's services but often end up in prolonged financial entanglements. In this case, even state's electricity provider—accustomed to chasing dues—must now clear its own backlog with the very department that safeguarded its most critical assets.