High Level Committee Formed To Review Power Purchase Agreements 

Amaravati: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy had earlier spoken about forming a Cabinet sub-committee to probe into irregularities that had taken place in the Power sector during the TDP regime.

Chief Minister YS Jagan Mohan Reddy observed that the TDP government had resorted to a massive fraud resulting in the loss of Rs 2,636 Crore to the state. Hence the said committee.

As part of this, a High Level Negotiation Committee (HLNC) for Power Purchase Agreements (PPAs) to review, negotiate and bring down the high wind and solar energy purchase prices was constituted. The HLNC was asked to complete the negotiations and submit a report to the Government within 45 days

It was observed that the Power Distribution Companies (DISCOMS) in the state were in a financial crisis and the power purchase dues were amounting to about Rs 20,000 crores till date. One of the major reasons for this is the issue of abnormally priced wind and solar power purchase agreements entered in the recent years. In order to ensure that consumers are provided with affordable power and DISCOMS are pulled out of the financial distress there is a need to review and renegotiate the exorbitantly priced wind and solar PPAs.

Srikant Nagulapalli, Secretary to Energy department had released a Government Order RT No 63 on Monday appointing nine members to the HLNC.

They include Buggana Rajendranatha Reddy, Minister for Finance and Legislative Affairs, B Sreenivasa Reddy, Minister for Energy and EFS & T Department, Sriram Subramanyam , Advocate General, AP High Court, Ajeya Kallam, Principal Advisor to Chief Minister, S.S.Rawath,IAS, Principal Finance Secretary, Finance Department, N.Srikant,IAS, Secretary to Govt, Energy Department, D Krishna, Special Secretary to Chief Minister, Gopal Reddy, former CMD, APSPDCL, Joint Managing Director, APTRANSCO, Member- Convenor.

It may be recollected that the YS Jagan formed a Cabinet Sub-Committee, to review the various policy decisions taken by the past TDP government in the last five years, will submit its report in 45 days. The Committee will look into 30 major issues in wake of large scale allegations of corruption that marked the Chandrababu Naidu's regime.

Also Read: Corrupt Energy Deals Inked During TDP Regime Will Be Probed: YS Jagan
Also Read: Uncovering TDP’s Corruption: Cabinet Committee To Submit Report In 45 Days