Power Purchase Agreements: Veerraju threatens Public Interest Litigations

Rajamahendravaram: BJP MLC Somu Veerraju has said that he is filing Public Interest Litigation (PIL) against state government relating to its Power Purchase Agreements (PPA) with some power generation plants in the state, as the government is incurring loss in crores of rupees.

Speaking to reporters at Press Club here on Thursday, he said that the state government penned MoUs with power generation projects such as GVK, Spectrum, Lanco etc to purchase power, in the year 1997, with a condition that after 12 years the power plants falls under the control of state government.

But, the state government two years ago entered into MOUs with the companies again for 12 years to purchase power and it has not taken up the power plants. Though there is surplus power in the state, the state government is purchasing power for higher rates from Lanco, Spectrum etc with vested interest, he alleged.