Centre writes to AP on PPAs once again

Even as the strongly-determined AP government is making its moves fast to review the power purchase agreements (PPAs), the Central government had once again stepped in and wrote a letter opposing the move.

Union Minister for Energy, R K Singh, had written a couple of letters earlier to the State government opposing the PPAs review. On Wednesday, too, he wrote once again rather cautioning the State government not to go for the PPAs review. He, perhaps being under the pressure of the strong power lobby, had justified the rates agreed by the previous government, and any attempt to review them would have global impact on the nation.

“The investors would run away from the country,” the Union Minister said, despite the fact that the AP High Court upheld that the PPAs can be reviewed by the Electricity Regulatory Commission. He further said that the PPAs on wind and solar power are the new trend in the energy sector and any reversal of the decisions of the previous government would send wrong signals across the world against the Indian governments.

He advised Chief Minister Jaganmohan Reddy not to compare the thermal or hydel power with that of the solar and wind power. He also advised the government not to link the financial health of the power distributary companies with the power tariff. The Union Minister further said that the thermal power, which is now at Rs 4.20 per unit, might go up in next 20 years depending on other factors including availability of coal and its transport, while the power tariff of the renewable energy, solar and wind, will remain the same even after 20 years as per the agreement.

The Union Minister was all out to defend the private power companies which have signed the agreements with the State government, besides other States in the country, and be able to influence the corridors of power.

It is to be seen what the AP government would do in this case and what the AP Electricity Regulatory Commission would decide!

Ravi Batchali
About Ravi Batchali 1540 Articles
With twenty five years of  experience in Print / Electronic & Social Media, had an illustrious career in leading daily news papers. Very creative and a tenacious reporter of the news with a reputation for impeccable ethics. His passion for Community Journalism and his work as a staff reporter was widely acclaimed. An excellent storyteller who treats news, features and other events with equal priority.

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