Accordingly in a first shocker to the Centre from AP Chief Minister, AP state government has defied the Centre's advise to not review the Power Purchase Agreements (PPAs) done by the previous government. Meanwhile contrary to the advice of the Secretary of Union New and Renewable energy Anand Kumar, YS jagan Mohan Reddy went ahead and ordered for a detailed review of PPAs claiming that Rs 2636 Crore loss was incurred to the state exchequer.
Furthermore jagan led AP state government has even stated that it would take legal action against those who hold responsible for the loss to public money. Hence to look into the alleged irregularities in PPAs involving renewable energy projects of wind and solar, jagan ordered the officials to seek the assistance of ACB, CID, vigilance and enforcement directorate.
Moreover this is the second time in the last 15
years that the PPAs entered into by Chandrababu Naidu government are being
reviewed. Previously 10 years ago, then CM late YS Rajasekhar Reddy had ordered
for the review of PPAs entered into by Chandrababu Naidu and the outcome by
Rosaiah committee was nothing substantial. He had stated that revisiting the
PPAs would shake the confidence of the investors in the sector and adversely
affects the future bids and investments in the state and the country.
Notwithstanding his advice, AP state government has ordered to review the PPAs.
