Energy Minister slams Naidu for causing loss to State exchequer

Amaravati: Former Chief Minister and TDP president N Chandrababu Naidu signed PPAs at exorbitant rates to benefit his coterie, blamed Energy Minister Balineni Srinivasa Reddy by revealing the facts relating to Kudigi NTPC in a press release here on Thursday.

The Minister said Naidu had purchased less power than the agreed quantum from the plant but gave the fixed amount as per the agreement. That led to a huge financial burden on the State government, he explained.

He further added that the State government entered into an agreement with Kudigi in 2010 with a commitment of purchasing 360 MW. He said that a total of 2,681 million units of power at a cost of Rs 4.8 per unit must be purchased from the plant per year. But, Naidu purchased only 392 million units.

In addition to that, the TDP government paid Rs 11.68 per unit and also accepted to continue the same, the Minister revealed. Whether the State government purchased total quantum of 2,681 MUs or 392 MUs, it has to pay Rs 317 crore per year as per the agreement, he said. This was a fraudulent decision by the then government, he blamed.

Srinivasa Reddy criticisedthe purchase wind and solar power from the benamies of Naidu. He added that the TDP government started purchasing solar and wind energy by paying Rs 4.84 per unit, when the thermal power was available at Rs 3.58. As a result, there was a loss of Rs 562 crore to the State government, he added.

The Minister also reacted to the criticism of the TDP against the State government that it has been purchasing the power at higher tariffs. He said that the State government was not buying the power at Rs 11.68 per unit.

It has been taking the power at the rate of Rs 2.95 to Rs 3.41 per unit from the Power Exchange. This was very low when compared with the same period power purchased by the TDP government in the last year, he added.