An acute resource crunch and a yawning revenue gap are threatening to cripple the functioning of the Kerala State Electricity Board (KSEB). Board sources told The Hindu that capital expenditure for ₹1,900 crore was made in 2018-19 without availing itself of any major loans and that has virtually rocked its fiscal foundation. This investment made for enhancing the quality of the transmission and distribution network for earning optimum benefits has put the board in dire straits. Payments to contractors and even meter readers hired on contract had to be delayed or either queued in the face of the resource crunch. Had there been a timely action in bridging the revenue gap, the present crisis could have been averted, sources said.

Source: The Hindu May 10, 2019 13:28 UTC