Kerala Electricity Board Expenses On Salaries, Pension Rise Despite Mounting Losses

Despite mounting losses, the Kerala State Electricity Board (KSEB) has earmarked nearly 40 per cent of its expenditure on salary and pensions. Malayalam daily Manorama reported that KSEB debt mounted to Rs 7,570 crore during 2017-18 fiscal. KSEB incurred a loss of nearly Rs 2,100 crore during the last financial year and expenses on salaries and pensions are higher than the loss incurred.

The electricity department employees are continuing to enjoy a good time and the State electricity minister M M Mani had said that KSEB might have to raise the power tariff. For the current fiscal, KSEB, which has 35,000 employees in its rolls, has estimated that 40 per cent of its revenue will go towards salaries and pensions. Last fiscal, these heads ate up 38.5 per cent of the board’s revenue.

Outgo on Kerala government staff salaries and pensions have more than trebled in the last eight years.

In the budget for the current financial year, the Kerala Government has estimated that expenditure on salaries and pension would total a little above Rs 50,000 crore or some 40 per cent of the total revenue expenditure of Rs 1,27,093 crore.

The minister’s statement on a hike in power tariff seems the only way out as KSEB earns 99 per cent of its income from tariff. Kerala increased power tariff by 10 paise to 30 paise for single phase users in April last year. For those using electricity more than 250 to 400 units, the hike was 50 paise.