Thursday, August 5, 2010

KSEB puts on hold move to cut supply to KWA

THIRUVANANTHAPURAM: The Kerala State Electricity Board (KSEB) on Thursday temporarily withdrew its decision to discontinue power supply to the Kerala Water Authority (KWA) for not paying power bills.

Electricity Minister A.K. Balan told The Hindu that the Chief Minister had assured the KSEB that the mounting bill arrears of the KWA would be discussed at the next meeting of the Council of Ministers.

With the KSEB, which is bound by the Electricity Act to function on commercial lines, cutting power supply to certain installations of the KWA, some parts of the State had started experiencing a disruption in water supply over the last few days. The issue had naturally led to public protest.

�We are in an unenviable situation in this issue. How can the KSEB function if it does not receive the payments for power supplied, Mr. Balan said.

He expressed the hope that the next Cabinet meeting slated for August 13 would come up with some solution to the issue.

Over 50 per cent of the total outstanding receivables of the KSEB was against the name of the KWA in 2008. The KSEB bartered a one-time-settlement (OTS) of arrears with the KWA then and, with the governments assistance, received Rs.250 crore from the KWA against an outstanding sum of Rs.824 crore.

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