📷 Image: Wikimedia Commons / Kris Sreekandath
Business
Kerala Chooses GNA Power Purchase Offer Over Himachal Deal to Sidestep ₹2,200 Crore Liability
✍️ The Hindu
🗓 04 Nov 2026, 05:37 PM
👁 14
Kerala's government has opted for a power purchase offer from GNA instead of a deal with Himachal Pradesh, a decision said by the chief minister to avoid an additional ₹2,200 crore liability.
Kerala’s government has decided to accept a power purchase offer from GNA rather than proceed with a previously discussed deal with Himachal Pradesh. The chief minister stated that the choice was made to prevent an extra financial burden of approximately ₹2,200 crore.
The GNA proposal reportedly offers more favorable terms for the state, allowing it to secure electricity supply without taking on the additional liability that the Himachal deal would have imposed. By opting for the GNA offer, Kerala aims to maintain fiscal discipline while ensuring continued power availability for its residents.
The decision follows a review of the financial implications of both agreements. While the Himachal deal promised a certain capacity of power, the associated costs were deemed unsustainable for the state’s budget.
Experts suggest that this move could set a precedent for other states evaluating power purchase agreements, highlighting the importance of balancing supply needs with long‑term fiscal responsibility.
The GNA proposal reportedly offers more favorable terms for the state, allowing it to secure electricity supply without taking on the additional liability that the Himachal deal would have imposed. By opting for the GNA offer, Kerala aims to maintain fiscal discipline while ensuring continued power availability for its residents.
The decision follows a review of the financial implications of both agreements. While the Himachal deal promised a certain capacity of power, the associated costs were deemed unsustainable for the state’s budget.
Experts suggest that this move could set a precedent for other states evaluating power purchase agreements, highlighting the importance of balancing supply needs with long‑term fiscal responsibility.