Review of PPAs to ensure competitive prices: CM Jagan

Amaravati: Chief Minister YS Jagan Mohan Reddy has said that the government's move to renegotiate Power Purchase Agreements (PPAs) signed with renewable energy producers is only aimed at ensuring competitive prices and to pass on the accruing benefit to the people.

Amid a raging controversy over the move, he also said there had been a lot of 'false' propaganda on the PPAs and that it has no substance or basis.

The YSRCP government has decided to review PPAs worth over Rs 30,000 crore signed by the previous TDP government. The industry is in a fix about the investment made already in the state. The review has triggered a rating cut for power projects.

Former Chief Minister and TDP Chief N Chandrababu Naidu termed the review move as a "recipe for disaster" by saying it would hurt the state's prospect to attract investment.

Rejecting the claims, Jagan said the move to renegotiate PPAs was aimed at passing on the benefits to the poor through welfare schemes.

"We are planning is to bring in power to a competitive rate. If we buy power at a higher rate and that becomes the tariff, then industries would shy away from buying power at a premium price," he said in the Assembly.

He further said that it is the reason why we are trying to renegotiate the PPAs is because the difference in price can be passed on to the poor through various welfare measures. He alleged some people were spreading canards on the issue saying no industry would now come to AP.

"It's the work of vested interests. There is no truth in it as our policy is clear. We want to ensure power supply in a cost-effective manner," the Chief Minister added.