The Government betrayed its lack of commitment to the development of the public sector, first, in the implementation of the Kochi metro project. Although the Oommen Chandy Government publicly proclaimed that it wanted the public sector company, the Delhi Metro Rail Corporation (DMRC) to implement the project, the IAS lobby, both in the state and at the Centre, backed by central and state ministers, tried its best to hand over the project to the private sector. A classic case of hunting with the hound and running with the hare! It was because of intense pressure from a vigilant people and fear of a popular backlash that prevented the government from going ahead with its privatisation agenda.

Then came the turn of the Kerala State Road Transport Corporation (KSRTC). The KSRTC faced a serious crisis as it had to pay a higher price for diesel following the Centre’s refusal to stop treating it as a bulk consumer. The state saw the Minister throwing up his hands in despair and pleading his helplessness in saving the transport corporation, instead of airing the government’s resolve to keep the KSRTC alive, whatever the cost. And the KSRTC would have been driven to doom but for a favourable high court verdict, which helped it secure diesel at a lower price.

Next was the shock administered by the Kerala State Electricity Board (KSEB). Here again, the Power Minister thundered that as long as he was in the ministerial chair, the KSEB won’t be privatised! But the minister ended up red in the face with the Regulatory Commission announcing a steep hike in power tariff from May 1, 2013. What adds insult to injury is the decision that the power hike would, hereafter, be an annual feature!

In its latest effort, the UDF Government has set its sights on privatization of drinking water supply system in the state. As a first step, the Government, through an order issued on April 15, announced the setting up of a company to privatise the supply of drinking water. The company, it is learnt, will have 51 per cent stake, and the Government and the Kerala Water Authority (KWA) would jointly have 49 per cent shares. The company, the Kerala Drinking Water Supply Company, is being set up on the lines of the Cochin International Airport Ltd. (CIAL) as a public-private partnership

The move has, however, run into political as well as legal hurdles. Leader of the Opposition, V S Achuthanandan has lost no time in denouncing the decision, which, he alleges, is aimed at undermining the Kerala Water Authority. Besides, the Left Democratic Front (LDF) has decided to launch an agitation, on May 18 – the second anniversary of the UDF Government – against what it called the sinister move to decide the water prices on commercial interests.

Moreover, former health minister K K Ramachandran Master has moved the High Court challenging the Government’s move. Consequently, a division bench, comprising Justices P N Ravindran and K Harilal has sought the government’s view on the matter. (IPA)