As expected, YSR Congress party president and Andhra Pradesh chief minister Y S Jagan Mohan Reddy on Monday ordered review of power purchase agreements with solar and wind power companies that caused huge burden on the state exchequer during the Chandrababu Naidu regime.
The government order said power distribution companies in the state were in financial crisis with huge power purchase dues to the tune of Rs 20,000 crore till date.
"One of the major reasons for this is purchase of wind and solar power at an abnormally high price.
In order to reduce the burden on Discoms, the government felt that there was a need to review and renegotiate the exorbitantly priced wind and solar power purchase agreements (PPA).
For that, the Jagan government constituted a high-level negotiation committee for PPAs to review, negotiate and bring down the high wind and solar energy purchase prices.
The committee comprises finance minister Buggana Rajendranatha Reddy, energy minister Balineni Srinivas Reddy, advocate general S Sriram, principal advisor to chief minister Ajeya Kallam and officials of energy, finance departments.
The committee will examine lowest wind and solar energy rates in the corresponding years in the country, rates prevailing currently, the opportunity cost for power from APGENCO plants, existing thermal contracts and central generating stations allocations.
The committee shall complete the negotiations and submit a report to the government within 45 days from the date of issue of these orders", the order said.
