Setback for TDP government
posted on Jun 19, 2014 @ 8:08PM
TDP Government’s proposal to terminate the power purchase agreements (PPA) made before division of the state creates havoc in Telangana government as it leaves 615mw power shortage if implemented. Hence, T Minister T. Harish rao minister strongly protested Andhra Governments decision and demands to immediately drop the decision, otherwise warned that T government also will react accordingly.
However, Electricity Regulatory Commission (ERC) has turned down APGENCO’s plea for termination of PPAs. It stated that unless both governments agree for terminations PPAs, it can’t terminate the PPAs on APGENCO’s plea. It stated that the present PPAs will continue till the Center takes a decision on this issue. ERC also advised both states two encourage private power production companies to avert this kind of problems in future. Hence, TDP government lead by Chandrababu Naidu faces the first setback with ERC’s decision to continue the existing PPAs, with which AP state will have acute power shortage.