Andhra Pradesh Refutes Sitharaman's Claim On Power Purchase Pricing

AMARAVATI: Ajeya Kallam, the principal advisor to the Chief Minister YS Jagan Mohan Reddy rebutted the claims of Union Finance Minister Nirmala Sitharaman that centre government is supplying power to Andhra Pradesh at Rs 2.70 per unit. He said that the state was actually purchasing power from public sector units at Rs 9.84.

Principal advisor even said that state is purchasing power from the public sector units at much expensive rate of Rs 5.5 lakh per megawatt.

Addressing the media, the principal advisor said the YSRCP government has not changed the tariff rates of Rs 7.65 per unit, which is already set for industries, by the previous Telugu Desam Party (TDP) government.

He said that state is bearing an additional burden of Rs 1,700 crore, as the National Thermal Power Corporation Limited (NPTC) is providing power to AP at the rate of  Rs 9.84 per unit along with transmission charges of Rs 5 lakh per megawatt.

He said that due to the Central policy, it has become mandatory for States to purchase power from some of the plants of NTPC at Rs 9.44 per unit.

Because of this, the state government is forced to pay additional charges even in case if it is purchasing power from neighbouring states.

Kallam also responded to Finance Minister against cancelling agreements which have international funding and said that AP has never opposed or cancelled the agreements that have reached with the centre.

He clarified that the state government wanted to review high-cost power purchase agreements (PPAs), but the centre asked us not to do that.

He even said that AP is bearing an additional burden of Rs 2,500 crore per year, as the state has not been allocated with the coal mines after the bifurcation in 2014.

CM's principal advisor said that hike in electricity charges was due to the agreements that reached out to centre during the TDP regime.
 
Kallam cleared mentioned that TDP has left behind Rs 40,000 crore debt to the present YSRCP government as it had left the bills worth Rs 13,390 crore in the power sector.

He said that the State government is making all its efforts to save money and YSRCP has saved Rs 5,000 crore in the power sector this year.

In 2014, the previous government has left Rs 24,800 crore debt in the power sector which has now increased to Rs 70,000 crore, said Kallam.

Kallam said that YSRCP government is providing fare transparent and corruption-free governance to people, and government saving a lot of public exchequer through Reverse tendering initiative.