The Kerala State Electricity Board (KSEB) has suggested to the 12th Finance Commission that the Centre may create a fund to compensate the loss suffered by the States on account of denial of permission to start hydel projects. In a memorandum to the commission, KSEB has pointed out that compared to the other states, the only source for power generation in Kerala is water. The State has been blessed with 44 rivers with the potential for generation of 4,333 megawatts. But till date, it has been able to harness only around 1,834 MW.