Amaravati: The decision to review power purchase agreements (PPAs) inked during TDP regime was only to make amends for the wrongs done in the past, stated principal advisor to Chief Minister YS Jagan Mohan Reddy, Ajay Kallam.
He said there was a misinformation campaign which was being carried out by some vested interests who were promoting that cancelling PPAs would result in investments to the State going back. "There are power companies which are coming forward to sell power to State without any such agreements in place," he added.
Highlighting that the decision to review the agreements was only to bring down costs on such purchases and to bring in transparency in the process, he said: "The past government inked PPAs at Rs 6 per unit cost. Solar power agreement was struck at Rs 4.84. But the prices of wind, solar and power prices have come down. Solar power unit cost which was at Rs 18 in 2010 is now being sold at Rs 2.45. Similarly, wind power prices came down to 43 paise from Rs 4.20. There is no need for the State to buy power at a higher price. Public money is being wasted due to this. Without PPAs, there are several companies which are coming forward to sell power at Rs 2.72."
It may be recalled that Chief Minister YS Jagan Mohan Reddy has already constituted a Cabinet Sub Committee to review the PPAs comprising Finance Minister Buggana Rajendranath Reddy, Energy Minister Balineni Srinivas Reddy, Ajay Kallam among others.