Keralam power purchase row: CM Satheesan says no GNA deal was signed

Keralam Chief Minister V D Satheesan said on Wednesday, 11 November 2026, that his government never signed a contract to buy electricity from GNA, and so there was nothing to withdraw, after reports that a power purchase deal with the supplier had been scrapped. Speaking after a Cabinet meeting, he said the government had only examined the options for buying power and had issued no order. He promised a permanent solution to the state's power supply problems. The same Cabinet decided to recommend that the Governor convene a special session of the Assembly from 30 November to 10 December 2026 to take up pending Bills and new laws.

The price Keralam pays for the electricity it buys from suppliers feeds into household and business bills. The question at the heart of this dispute is simple for consumers: will there be power cuts this winter, and at what cost will the state avoid them? The KSEB's letter to the Chief Minister, as he described it, warned that without a decision on purchases the state could face long power cuts. A KSEB official was separately reported to expect outages after the festive period, while another report described power as plentiful with demand falling. The two pictures have not yet been reconciled in public.

What was there before: the KSEB and the government were weighing offers from several suppliers, including GNA and a proposal involving power from Himachal Pradesh. What changed: a report on 9 November said the GNA arrangement had been dropped, prompting questions, and on 11 November the Chief Minister said there had never been a signed deal. What comes next: the government says it will sign short-term and long-term contracts, which will set the price of the extra power the state buys.

The confusion within the government is also part of the story. When both the Chief Minister and the Electricity Minister say they learned of a reported decision from newspapers, it raises questions about how power purchase decisions are made and communicated. The special Assembly session the Cabinet wants from 30 November, if convened, will give legislators a forum to raise the issue.

Peepals calculation: By the Chief Minister's figures, GNA's offers were Rs 5.60 to Rs 5.87 a unit cheaper than the Himachal Pradesh proposal (14.50 − 8.90 = 5.60; 14.50 − 8.63 = 5.87), or about 39% to 40% lower (5.60 ÷ 14.50 ≈ 0.39; 5.87 ÷ 14.50 ≈ 0.40). On every 10 lakh units bought, that gap is about Rs 56 lakh to Rs 58.7 lakh. Our calculation from the reported figures.

Short-term: Consumers will watch for any power cuts in the coming weeks, while the government works out short-term purchase contracts.

Long-term: The long-term contracts the government says it will sign will decide how much Keralam pays for bought-in power for years, which feeds into future electricity tariffs.

Who is affected: Electricity consumers across Keralam, the KSEB, power suppliers bidding to sell to the state, and members of the Assembly who will meet in the special session.

What to watch next: The Governor's decision on convening the special Assembly session from 30 November to 10 December 2026, and the short-term and long-term power contracts the government has said it will pursue.

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