Another shock to CM YS Jagan's government over PPAs

Amaravati: CM YS Jagan Mohan Reddy's government has got another shock over the PPAs. The state government has conducted a high-level review meeting over the power agreements on Monday.

However, the central power companies NTPC and SECI have decided not to attend the review meeting. They have decided to take legal actions if the government decides to cancel the agreements. The SECI has written a letter to Discoms demanding to clear the pending dues by respecting the agreements immediately.

It's known that the Ministry of Power has responded over CM YS Jagan's decision to cancel the power agreement which was done during the TDP regime. It suggested to the government that it is not good for the industrial development to review the power purchase agreements. It also said that the CM YS Jagan announcement might hurt the confidence of investors. It said the state contracts are made under the norms of the Central Electricity Regulatory Commission and that too in an open auction process.

The Union Ministry of Energy has recalled that the Center aims to achieve 175 GW of renewable energy by 2022. Recently, the World Bank has also stepped down from the Amaravati capital project by stoping the huge funds.