Thiruvananthapuram: The deepening financial crisis has compelled the Kerala State Electricity Board (KSEB) to approach the government, seeking approval to terminate electricity connections of institutions with outstanding bills. While the board remains considerate towards government hospitals in arrears, it insists on discontinuing power supply to public sector undertakings, including the Water Authority.
KSEB has assigned its arrears resolution cell the task of prioritizing the disconnection of power supply for the Water Authority, as the latter is unwilling to establish an Escrow Account Agreement as per the government directive. The government’s proposal for an Escrow Account aims to streamline transactions between KSEB and the Water Authority. Taking a firm stance, KSEB asserts that non-compliance with the Escrow agreement will result in a power cutoff.
The Water Authority, grappling with a monthly bill of Rs 37 crore, owes approximately Rs 1500 crore in arrears to KSEB. Faced with this critical situation, KSEB has urgently decided to address outstanding dues from government departments and apprise the government of its precarious financial state.
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