KSEB board rejected Rs 40 crore fix for Moozhiyar generator, incurred Rs 1,000 crore loss instead

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.