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Jagan government appoints high level negotiation panel to review PPAs of TDP regime

Jagan Mohan Reddy alleged irregularities in renewable energy PPAs entered into by the previous TDP regime and claimed that the irregularities cost the government exchequer Rs 2,636 crore loss.

Published: 01st July 2019 02:49 PM  |   Last Updated: 01st July 2019 02:49 PM   |  A+A-

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy (Photo| EPS)

By Express News Service

VIJAYAWADA: The YS Jagan Mohan Reddy government in Andhra Pradesh, which earlier announced that it will review the Power Purchase Agreements (PPAs) entered by the previous TDP government, on Monday constituted a High-Level Negotiation Committee (HLNC) to negotiate and bring down costs in all the high priced wind and solar power purchase agreements.

After coming to power, Jagan Mohan Reddy alleged irregularities in renewable energy PPAs entered into by the previous TDP regime and claimed that the irregularities cost the government exchequer Rs 2,636 crore loss. Jagan Mohan Reddy even announced that the government would recover the amounts from those responsible for the alleged irregularities in the PPAs including the then energy department officials, energy minister and even the then Chief Minister N Chandrababu Naidu.

The Chief Minister earlier announced that a cabinet sub-committee will look into the alleged irregularities in PPAs and the CSC will be assisted by officials from the investigation agencies including the Anti-Corruption Bureau (ACB), Crime Investigation Department (CID) and others.

Jagan Mohan Reddy took the decision to dig deep into the irregularities in PPAs even as the Centre, through a letter by Union renewable energy secretary Anand Kumar, advised the AP Chief Minister not to revisit the PPAs as it will shake the confidence of the investors in the sector and adversely affect future investments in the State.

On Monday, Jagan Mohan Reddy government appointed the High-Level Negotiation Committee which will have finance minister Buggana Rajendranath Reddy, energy minister Balineni Srinivas Reddy, Advocate General S Sriram, state government advisor Ajeya Kallam and officials from finance and energy departments and power utilities as its members.

The committee, apart from reviewing the high priced wind and solar PPAs, will negotiate with those who are selling wind and solar energy to AP DISCOMs and bring down the prices. "The HLNC shall complete the negotiations and submit a report to the government within 45 days," the Government Order issued
constituting the HLNC read.

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