VIJAYAWADA: YS Jagan Mohan Reddy’s YSR Congress Party has strongly condemned the allegations of USSEC in its Indictment saying that they are incorrect.
The Power Sale Agreement (PSA) was signed between two government agencies SECI and Discoms after the approvals from the AP Electricity Regulatory Commission (APERC) and the Central Electricity Regulatory Commission (CERC) and there was no direct agreement with Adani group.
In a three-page rebuttal, the YSRC explained that this deal was extremely favourable with respect to the interests of the State, and procurement of power at Rs 2.49 per kWh, including waiver of ISTS charges. The cheap rate would substantially benefit the State with a saving of Rs 3,700 crore per annum.
As the agreement was for a period of 25 years, the total benefit to the State due to this agreement would be immense, the YSRC explained.
The Government of Andhra Pradesh agreed to procure power from SECI to the tune of 7,000 MW at Rs 2.49 per kWh for 25 years with 3,000 MW commencing in FY 2024-25, another 3,000 MW in FY 2025-26, while the remaining 1,000 MW in FY 2026-27.
The PSA was signed on December 1, 2021. The YSRC note stated that the cost of procuring power was Rs 5.10 per kWh at that time, and the State distribution utilities were supplying close to 12,500 MU of free power per annum to the agriculture sector, which made subsidy cost very burdensome.
The YSRC clarified that in view of this, the State government in 2020 proposed to install 10,000 MW solar capacity in solar parks to be developed in the State.
In this regard, a tender was floated by APGECL in November 2020 for the development of solar power capacity aggregating to 6,400 MW, wherein 24 bids were received with tariffs in the range of Rs 2.40 to Rs 2.59 per kWh.
However the exercise could not fructify as the tender encountered several obstacles on legal and regulatory fronts, the YSRCP stated.
In this scenario, the State government received an offer from SECI to supply 7,000 MW power at Rs 2.49 per kWh, including ISTS charges, which were waived by the Ministry of Power for 25 years for the projects selected under the Manufacturing Linked Project.
CPI DEMANDS JUDICIAL PROBE
CPI State secretary K Ramakrishna demanded that the government should cancel all the agreements signed by the YSRC government, and an inquiry be conducted with the sitting High Court Judge into the corruption allegations made in the USSEC Indictment. “Due to these fraudulent agreements, people are bearing the burden of Fuel and Power Purchase Cost Adjustment amounting Rs 17,820 crore,” he said.