AP firm on reviewing RE PPAs in spite of Centres caution

first_imgPublished on July 15, 2019 The Andhra Pradesh government will review power purchase agreements (PPAs) relating to solar and wind energy signed during the past five years to bring about transparency and reduce the burden on the common man, according to Ajay Kallam, Principal Adviser to Chief Minister YS Jaganmohan Reddy.He was speaking to newspersons on Monday at Amaravati on the issue, which has triggered a controversy in the State. Even the Centre has written to the State government advising against such a course of action and to desist from reviewing all the PPAs or cancelling them, unless there is compelling evidence of corruption. Otherwise, investment into the sector would be hit, the State government has been cautioned.However, Ajay Kallam said there was no truth in the apprehensions that reviewing PPAs would result in a fall in investment in the sector. “The aim of the State government is to bring about transparency in the process and to reduce the burden on the common man and the industries. We have enough power now and there is no need to purchase power at such high rates. Per-unit cost of wind and solar energy has come down substantially in the recent times,” he said.He said the PPAs signed during the past five years of TDP rule would be reviewed. “In the interest of the public, Chief Minister YS Jaganmohan Reddy has taken the decision. Only if there is any ulterior motive, or mala fide intention, in signing these PPAs, we will cancel them. Why should others fear?” he said.Asked about the Centre’s letter, he said there was nothing wrong in reviewing PPAs and it would not hit investor sentiment. A reply would be sent to the Centre on the issue, apprising it of all the facts.He said only five companies had bagged 70 per cent of the PPAs and the track record of some of the companies is suspect. Therefore, he said, a review was warranted and, if necessary, corrective action would be taken. COMMENTS SHARElast_img

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