Jagan meets PM, gives reasons to revisit power deals

HYDERABAD: Andhra Pradesh chief minister Y S Jagan Mohan Reddy on Tuesday sought to explain to the Centre the reasons behind his decision to revisit power purchase

HYDERABAD: Andhra Pradesh chief minister Y S Jagan Mohan Reddy on Tuesday sought to explain to the Centre the reasons behind his decision to revisit power purchase agreements (PPAs) signed by his predecessor N Chandrababu Naidu with solar and wind power producers.

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Along with YSR Congress MPs, he called on Prime Minister Narendra Modi and pointed out that the Naidu government had entered into PPAs in an irrational and outlandish manner, causing a huge burden on the state exchequer, an official release from the chief minister’s office said.

“The PPAs were signed only to benefit a select few with ulterior motives. Though there was a purchase limit of only 5-10%, the previous TDP government had purchased 23.6% of renewable energy causing a loss of Rs 2,654 crore to electricity department. Due to the chaotic policies of the previous government, the debt of discoms had gone up to Rs 20,000 crore,” he explained.

Reddy also told Modi the state’s debt burden had gone up from Rs 97,000 crore in 2014-15 to Rs 2.58 lakh crore by 2018-19. Though the Centre was supposed to release Rs 2,100 crore over six years for seven backward districts, only Rs 1,050 crore had been released. He asked the Prime Minister to ensure the Centre releases Rs 23,300 crore for backward districts.

Reddy will meet BJP national president Amit Shah on Wednesday. The meetings are significant following criticism by BJP leaders on his government’s allegedly hasty decisions on review of PPAs, Polavaram project contract termination and stalling of Amaravati capital city works.