Setback to Jagan's government on power agreements

Vijayawada: In a setback to YS Jagan Mohan Reddy's government Appellate Tribunal for Electricity in its interim orders ruled that the AP Electricity Regulatory Commission shall not go ahead with the public hearing on tariff fixing. The Tribunal heard a petition filed by three Power companies in Anantapur and Kadapa that bagged 1500 MW solar power projects.

The Tribunal has said that under section 63 of the act, there is no need for a public hearing for the companies that bagged power projects in competitive bidding.

As opposition leader, Y.S.Jagan alleged several times massive corruption by TDP leaders in power purchase agreements. He declared that he would review all PPAs and he will cancel them. Jagan's government had decided to review all the PPAs after he came into power.

Union Minister of State for Power and Renewable Energy, RK Singh, wrote a letter to Andhra Pradesh Chief Minister on 9th July 2019 requesting him to honour Naidu regime's PPAs. The Central Minister has also advised not to review as it would severely affect the business environment of electricity purchases. But the Jagan government paid no heed to his words and wanted to proceed with its decision.

Three electricity companies based in Kadapa and Anantapuram moved to Tribunal on the 'review' decision. They argued that their credibility would be at a stake when the PPAs are reviewed. Hence, the APTEL has issued final orders on Saturday asking the government to not to go ahead with a public hearing.