# KSEB board rejected Rs 40 crore fix for Moozhiyar generator, incurred Rs 1,000 crore loss instead 2026-08-27T02:22:48+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Kerala State Electricity Board rejected a six-year-old recommendation to replace the faulty number 4 generator at the Moozhiyar powerhouse with a new unit costing Rs 40 crore, even as the limping machine has caused an estimated Rs 1,000 crore in losses. The Sabarigiri project's generator, installed in 2013 at 60 MW capacity, has never consistently delivered that output and requires 54 major repairs. Employees report fearing to work near it due to continuous vibration. Internal advice from board and department officials opposed replacement, arguing it would expose past flaws and trigger legal trouble over the Rs 3 crore performance guarantee that was returned to the Chinese manufacturer without withholding. The board has not initiated legal action against the Chinese company despite the generator failing to meet contract terms. A Vigilance probe into the matter has also stalled. ## Indian Opinion Analysis The Sabarigiri project, commissioned in 1966 with an original capacity of 300 MW, was modernised in the 2000s under a Rs 700-crore renovation programme. The number 4 generator was part of that upgrade. The Kerala State Electricity Board's own procurement rules require performance guarantees to be enforced before releasing payments to foreign suppliers. The Vigilance and Anti-Bigamy Bureau of Kerala has the jurisdiction to probe suspected corruption in public sector contracts. The board's next board meeting, where the replacement decision could be revisited, will be watched by employee unions who have flagged safety concerns about the vibrating unit. ## Coverage - english.mathrubhumi.com Leads with financial loss figure, highlights official inaction and unaddressed questions, critical of KSEB and department officials This brief was synthesised by AI from the source linked above. Tags: Kerala State Electricity Board, Moozhiyar, Sabarigiri Hydroelectric Project Canonical: https://indianopinion.org/kseb-board-rejected-rs-40-crore-fix-for-moozhiyar-generator-incurred-rs-1000-crore-loss-instead/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/kseb-board-rejected-rs-40-crore-fix-for-moozhiyar-generator-incurred-rs-1000-crore-loss-instead/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/