HYDERABAD: Telangana irrigation minister T Harish Rao on Wednesday condemned the reported move by Andhra Pradesh chief minister Nara Chandrababu Naidu to cancel the Power Purchase Lease Agreement with the power companies.
Speaking to newsmen at the Secretariat here, Harish Rao alleged that the cancellation of PPLAs would intensify the energy crisis in Telangana and might cripple the industries operating in the state. He said that Naidu’s move was against the provision of Andhra Pradesh State Reorganisation Act. The Act stated that the PPAs would be common for both successor states.
The Andhra Pradesh government has decided to take steps to ensure that electricity is consumed where it is generated. As part of this decision, it urged the Andhra Pradesh Electricity Regulatory Commission (APERC) to cancel PPAs signed by the then united state with the electricity distribution companies.
As per the Reorganisation Act, the PPAs would be in force for 10 years for both the states or till the date of expiry.
They cannot cancel the PPAs unilaterally and without consulting the Telangana government, Harish Rao said.
He found no basis in AP’s demand to cancel the PPAs as they were yet come into force. If the ERC conceded AP’s demand, Telagnana would lose 460 MW power, he said.
He also reminded that Hyderabad was a common capital for 10 years and Andhra Pradesh chief minister’s office, Secretariat and other offices of AP would be located in Hyderabad. ‘’Does the AP government want power supply for their offices in Hyderabad or not? Do they want power supply for their Assembly or not?” he asked.
As per the AP Reorganisation Act, the existing State Load Despatch Center (SLDC) will function for both successor states for two years within which time separate SLDCs shall be set up for each state.
During this period, the existing SLDC shall function under the direct administration and control of the Southern RLDC at Bengaluru.
The Reorganisation Act also stated that the existing Power Purchase Agreements (PPAs) with respective Discoms will continue for both on-going projects and projects under construction.