In a first shocker to the Centre from AP Chief Minister, AP state government has defied the Centre’s advise to not review the Power Purchase Agreements (PPAs) done by the previous government. Contrary to the advise of the Secretary of Union New and Renewable energy Anand Kumar, YS Jagan Mohan Reddy went ahead and ordered for a detailed review of PPAs claiming that Rs 2636 Crore loss was incurred to the state exchequer.
Jagan-led AP state government has even stated that it would take legal action against those who hold responsible for the loss to public money.To look into the alleged irregularities in PPAs involving renewable energy projects of wind and solar, Jagan ordered the officials to seek the assistance of ACB, CID, vigilance and enforcement directorate
This is the second time in the last 15 years that the PPAs entered into by Chandrababu Naidu government are being reviewed. Earlier 10 years ago, then CM late YS Rajasekhar Reddy had ordered for the review of PPAs entered into by Chandrababu Naidu and the outcome by Rosaiah committee was nothing substantial. Political analysts opine that even Jagan’s government could not achieve much by reviewing the PPAs since the PPAs were approved by the Regulatory Commissions.
It can be noted that Union Renewable Energy Secretary Anand Kumar had written a letter to AP Chief Secretary LV Subramanyam and expressed serious concerns over the review of PPAs. He had stated that revisiting the PPAs would shake the confidence of the investors in the sector and adversely affects the future bids and investments in the state and the country. Notwithstanding his advise, AP state government has ordered to review the PPAs. This is indeed Jagan’s shocker to the Centre.
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