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In a bid to meet the electricity requirements of Kerala, the state government on Wednesday decided to urge the Central Electricity Regulatory Commission to reinstate contracts in the power sector that it previously denied permission to.
The decision was taken at a state cabinet meeting chaired by Chief Minister Pinarayi Vijayan.
The state government said it would give this direction to the Central Electricity Regulatory Commission under Section 108 of the Electricity Act.
State Power Minister K Krishnankutty said that the key regulator is legally bound to follow the direction of the state government.
"If the direction is being given invoking Section 108 of the Electricity Act, then they are legally bound to accept the direction. We also have the provision for an appeal," Krishnankutty told PTI.
In a statement, the CMO said the decision was taken considering public interest and to ensure that the state would not experience a power crisis.
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Meanwhile, the Kerala State Electricity Board Officers' Association welcomed the cabinet decision.
In a statement, the association said that the regulator's decision to cancel the contract that provided 465 MW of electricity to Kerala would have caused a power crisis in the state and also put a huge financial burden on KSEB and the consumers.
The association congratulated the state government for invoking its special powers through Section 108 to direct the commission to reinstate the contract.
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