TDP government put undue stress on discoms by entering into PPAs: Andhra Pradesh Finance Minister

Seeking to know why the TDP was in a hurry for the report, FM Buggana Rajendranath said the previous government burdened the discoms by entering into a series of PPAs even though there was no need.
Andhra Pradesh Finance minister Buggana Rajendranath Reddy (File Photo | EPS)
Andhra Pradesh Finance minister Buggana Rajendranath Reddy (File Photo | EPS)

VIJAYAWADA:  Monday saw heated arguments between the leaders of the ruling YSRC and the TDP in the Legislative Assembly. During the Question Hour, after the State government said the report of Gopal Reddy Committee on Power Purchase Agreements (PPAs) was being examined, the TDP leaders sought to know how could ministers and officials level corruption charges on the previous regime.

TDP deputy floor leader K Atchannaidu and N Ramanaidu questioned the intentions of the government in going ahead with the review of the PPAs, despite the Centre suggesting it to desist from such a move as it would result in losses not only to Andhra Pradesh, but also to the nation as the key players in the renewable energy sector might renege on investments. “How can the officials of the Chief Minister’s Office convene a press conference without getting any report and make baseless allegations against former CM N Chandrababu Naidu?” they asked.

Seeking to know why the TDP was in a hurry for the report, Finance Minister Buggana Rajendranath said the previous government burdened the discoms by entering into a series of PPAs even though there was no need. The government will bring out all the facts, he asserted.

“We agree that renewable energy has benefits. But it is a costly affair, at present. Despite this fact, the previous government entered into PPAs for purchasing more renewable energy than what was required. What is the need for purchasing renewable energy at `4.24 despite availability of thermal power below `3? Even if we don’t purchase thermal power, we should pay the fixed cost for thermal power. Knowing all the facts, how can the previous government put financial burden on discoms by entering into more PPAs if there were no malafide intentions?” Buggana pointed out.

With regard to the outcome of the meetings between CMs of Andhra Pradesh and Telangana to resolve the issues related to Schedule IX and X of the AP Reorganisation Act, treasury and opposition benches crossed swords. The TDP leaders demanded to know why Jagan Mohan Reddy, who had claimed before the last general elections that he would get the SCS to the State if his party won 22 MP seats, could not keep his promise in the last six months? Replying to the same, Agriculture Minister K Kannababu said the TDP had no moral right to speak on the issue as it welcomed the special package offered in lieu of SCS.

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