AP High Court Dismisses Petition Against PPAs

Amaravati: In a setback to power companies, Andhra Pradesh High Court dismissed their case against the review of PPAs by the State government and directed the power companies to present their arguments before the Andhra Pradesh Electricity Regulatory Commission (APERC),on Tuesday.

The High Court upheld the government's claim that it would go to the APERC for a review of the Power Purchase Agreements (PPAs) made during the previous TDP regime.

The High Court also accepted the government's argument that it will pay a tariff of Rs 2.43 and Rs 2.44 per unit till the matter is settled as interim payment.

Last month, 40 renewable power supply companies had approached the High Court against the Andhra Pradesh government's decision to establish a panel to review PPAs. The companies claimed that the State government had no power to review the agreements made by the previous TDP regime.

After listening to their submissions the High Court dismissed their petition and further directed the government and power companies to present their arguments before the APERC.

The High Court in its order also said that the government can issue notices as per the law governing the power companies and directed the state to avoid curtailing generation from power companies without issuing prior notices.

Earlier Chief Minister YS Jagan Mohan Reddy said that the Government was planning to bring in power at a competitive rate and if we buy power at a higher rate and that becomes the tariff, then industries will shy away to buy such power paying a premium. That is the reason why we are trying to renegotiate the PPAs, so that the difference in price can be passed on to the poor through various welfare measures, he said.

People spreading canards that no industry will come to Andhra Pradesh and the industry is unhappy to have no real basis and it is being circulated by vested interests. There is no truth in it and our policy is to bring in power in a cost-effective manner, he said.