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Andhra to earn thousands of crores in t‘win’ deals with GMR & Greenko

“After 25 years, for the rest of the lifespan of the project, it has agreed to pay Rs 2 lakh development charge on every MW,” Ajeya Kallam said.

Published: 13th June 2020 11:14 AM  |   Last Updated: 13th June 2020 11:14 AM   |  A+A-

cash, money, investment

For representational purposes (Express Illustrations)

By Express News Service

VIJAYAWADA:  Principal advisor to the Chief Minister Ajeya Kallam on Friday said recent agreements re-negotiated by the State government helped the State save thousands of crores of taxpayers’ money — which is a reflection of its commitment to ensure transparency and efficiency in governance. 

Citing agreements with Greenko Group to set up a solar, wind and hydro power generation project in the Rayalaseema region, and the GMR for the Bhogapuram airport, he said, “When Greenko proposed the project, the previous TDP government alienated 4,600 acres at Rs 2.5 lakh per acre in the Rayalaseema region. The company proposed to construct 1000 MW solar energy plant, 550 MW wind energy plant and 1,680 MW reverse pumping (hydro) project. 

The state exchequer could only get Rs 119 crore. After reviewing the project, and renegotiating with the company, it has agreed to pay Rs 5 lakh per acre instead of Rs 2.5 lakh which means the revenue the State gets has increased to Rs 238 crore.”

The company also agreed to pay Green Energy Development charge of Rs 1 lakh on every MW of renewable energy produced for 25 years due to which the State gets Rs 31 crore additional income per year. 

“After 25 years, for the rest of the lifespan of the project, it has agreed to pay Rs 2 lakh development charge on every MW,” Ajeya Kallam said. The lifespan of a hydroelectric project is over Rs 100 years. Because of the levy of Green Energy Development charge, the State will earn Rs 3,375 crore over this period.

‘Rs 5,000 crore saved in Bhogapuram airport deal’

Greenko Group is for the most part owned by two of the largest sovereign wealth funds in the world -- the Government of Singapore Investment Corporation and Abu Dhabi Investment Authority. It is the largest renewable energy company in the country.

Pointing out that the previous TDP government had proposed to recover just a one-time amount of Rs 119.16 crore, Ajeya Kallam said the YSRC government has ensured a recurring annual benefit of 27 percent on the total one-time amount.

 Explaining the change in terms of the Bhogapuram airport agreement, Ajeya Kallam said, “The previous government allocated 2,700 acres.

The project was reviewed and it was found that the value of the land was premium and it would increase in the future. The present government renegotiated with GMR, which bagged the contract for the project, and informed it that 2,200 acres would be sufficient for the airport.

The government asked it to return 500 acres to which the company agreed. Five hundred acres at the present market value of Rs 3 crore per acre would cost Rs 1,500 crore and the value of the land is expected to increase to Rs 10 crore per acre, once the airport is completed. The YSRC government has been able to save Rs 5,000 crore public money.”

The Principal Advisor to the CM also recalled that the government has saved Rs 2,072.29 crore public money through reverse tendering of various projects. “This is a reflection of the government’s efficiency. We will take up more welfare schemes by saving money this way. The government is working with the aim of implementing welfare schemes for the people on time,” he said.
 



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  • RANGANATH

    Bombay was bought for just 7 rupees. That old price can not be compared with today's price. It amounts to fooling 5 crore Telugu people. YCP overnment is giving peoples money to people to buy votes as if the CM has given from his 43
    1 year ago reply
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