In a significant development, the Controller and Auditor General (CAG) has taken disciplinary action against the board members of the Kerala State Electricity Board (KSEB) for approving an untimely “pay and pension” revision. This decision comes at a time when the state electricity board is grappling with staggering losses amounting to over Rs 6,500 crores.
The controversial pay revision was implemented by the KSEB a couple of years ago in 2021, resulting in an additional expenditure of Rs 734.4 crores. Under the revision, the share of salary and pension escalated to a staggering 46.59 percent of the board’s total revenue.
The KSEB board had previously faced severe criticism for initiating a pay revision without seeking the consent of the government back in 2016. Ultimately, it is the general public who will bear the consequences of these hasty decisions made by the board members.
In January 2021, public sector institutions in the state were directed to carry out pay revisions only after obtaining approval from the state government. The CAG has highlighted that the recent decision by the KSEB board is in clear violation of the government order.
Moreover, the additional expenses incurred by the electricity board will inevitably burden the common public. As per the latest revision, the board will have to allocate a minimum of Rs 1,317.66 crores in the form of arrears, which will translate to an extra 56 paise per unit of electricity. Additionally, the increased retirement benefits for KSEB employees will indirectly impact electricity charges across the state.
It has come to light that KSEB employees are receiving a substantial amount in the form of dearness allowance, surpassing the rates offered in other government departments. This further adds to the financial burden faced by the state electricity board.
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