Jagan meets PM Modi, explains decision to review PPAs entered into by Naidu
YSR Congress party president and Andhra Pradesh chief minister Y S Jagan Mohan Reddy on Tuesday sought to give an explanation to the Centre on his decision to revisit the power purchase agreements entered into by his predecessor N Chandrababu Naidu, with various solar and wind power producers.
The chief minister, along with his party MPs, met Prime Minister Narendra Modi in New Delhi and gave him a representation seeking liberal assistance from the Centre for various projects being taken up in the state.
He also reiterated the demand for special category status to AP with specific incentives to the industrial sector, besides implementing the other pending issues mentioned in the AP Reoganisation Act, such as establishment of a steel plant in Kadapa and construction of a port at Ramayapatnam in Nellore district.
An official release from the chief minister’s office said Jagan had explained to the Prime Minister how the previous Telugu Desam Party government had entered into PPAs with renewable energy producers in an irrational manner, causing a huge burden on the state exchequer.
“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 the electricity department. Due to the chaotic policies of the previous government, the debt of discoms has gone up to Rs 20,000 crore,” he explained.
The chief minister also told PM Modi that the debt burden of the state 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 see that the Centre releases Rs 23,300 crore for backward districts.
On the recent initiatives being taken by the Andhra Pradesh government in association with the Telangana government, Jagan explained to the Prime Minister that the water problems in the state would be resolved through interlinking of Godavari and Krishna rivers.
He said his government was taking steps for the development of water grid for supply of safe drinking water to the people in the state at a cost of Rs 60,000 crore and appealed to the Centre to extend financial assistance for the same.
The chief minister also asked the PM to release additional funds for the construction of the capital city of Amaravati. Out of Rs 2,500 crore pledged by the Centre, the state has received only Rs 1,500 crore so far.
The chief minister will be meeting BJP national president and home minister Amit Shah on Wednesday, besides other central leaders.
The meetings assume significance in the wake of criticism by the BJP leaders against the YSRC government in the state for its alleged hasty decisions on review of PPAs, termination of the contract of the Polavaram project and stalling of construction work for Amaravati.