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Thiruvananthapuram ∙ The Controller and Auditor General found that the salary and pension reform implemented by KSEB in 2021 without the government’s approval will result in an additional liability of Rs 15,184 crore and this will come as an additional charge of up to Rs 6.46 per unit on electricity consumers.

The CAG suggested that strict action should be taken once morest the board of directors who violated all the norms and revised the salary, and the money which came as an additional liability should be cut from the financial assistance given to KSEB by the energy department and the government should ensure that the KSEB employees do not get more money through salary revision than what the government employees are getting. The draft report handed over to the government will become public record when it is placed on the table of the assembly.

From the report: Despite repeated warnings from the state government, the finance department and the CAG, KSEB is repeating the seemingly arbitrary implementation of salary revisions. Due to illegal increases in salaries and pensions, the expenditure on salaries and pensions jumped from 23 per cent of revenue to 46 per cent at once. 1,011 crore as arrears due to increase in salary with retrospective effect from July 2018. 15,184 crores is the additional liability created by all the expenditure in the long run. Since KSEB’s job is only to sell electricity, it can find money for additional salaries by increasing the rates.

The board has prepared for the next reform in 2021 when the government has not approved even the salary reform implemented in 2016. Without even thinking that it was a loss-making company, the wages were increased to a higher level than what the state government was paying employees. The Department of Energy, which was supposed to be involved in this, turned a blind eye to everything. While state government employees get only 7% dearness allowance, KSEB has sanctioned 5% more dearness allowance. A total of 19% shortage benefit is received. Due to this, the annual liability is 191 crores.

The revised salary of KSEB driver is Rs 36,000-76,400 while the pay scale of driver in government department is Rs 27,900–63,700. According to March 2020 estimates, the board was ready for this reform when it faced a loss of Rs 6,498 crore. The salary revision was implemented when NS Pillai was the chairman of KSEB. B. Ashok, who later took over as chairman, opposed the salary revision without the government’s approval.

English Summary: KSEB salary revision illegal