In a temporary reprieve for power producing companies, the Andhra Pradesh high court on Thursday suspended the controversial government order (GO Ms No. 63) issued by YSR Congress party government seeking to review power purchase agreements entered into by the previous Telugu Desam Party government.
A high court bench headed by Justice M Ganga Rao was hearing over a dozen petitions filed by nearly 40 solar and wind power producers.
He directed that the GO be kept in abeyance for a period of four weeks and posted the case to August 22 for further hearing.
The court also suspended the letter written by Andhra Pradesh Southern Power Corporation Limited (APSPCL) to the power producers on July 12, summoning them for re-negotiations on power purchase agreements.
Arguing for power companies, senior Supreme Court advocate Mukul Rohatgi said the state government had absolutely no powers to renegotiate the PPAs, as they were approved by the electricity regulatory commission, after a thorough public hearing.
“Once the agreements got the approval from the regulatory commission, the Discoms have to follow them,” he said.
State advocate general Sriram Subrahmanyam argued that the state government could review the PPAs and negotiate with the power producers to reduce the prices in the interests of the consumers.
