In what can be termed as a major fillip to YS jagan Mohan Reddy Government's anti-corruption drive, Andhra Pradesh High Court dismissed the case of the Power Companies against the review of PPAs by the State government and directed the power companies to present their arguments before the Andhra Pradesh Electricity Regulatory Commission (APERC).
The high court agreed with the Government's argument that it would go to the APERC for a review of the Power Purchase Agreements (PPAs) made during the previous TDP regime. The court also accepted the government's argument that it will pay a tariff of Rs 2.43 and Rs 2.44 per unit until the matter is settled as an interim payment.
The High Court in its order also said that the government can issue notices as per the law governing the power companies and directed the state to avoid curtailing generation from power companies without issuing prior notices. The court also directed APERC to resolve the issue within Six Months. Last month, 40 renewable power supply companies had approached the High Court against the Andhra Pradesh government's decision to establish a panel to review PPAs.
