The AP Electricity Regulatory Commission has pronounced Andhra’s recent controversial call to cancel several Power Purchase Agreements arbitrary and against natural laws. The ERC declaration entirely supports Telangana argument in the case and eventually confirms the Telangana share of 53.8% in all the 31 PPA’s entered before State bifurcation.
ERC has also pointed out that the Andhra government chose to cancel mostly those PPA’s that are situated in the Telangana region. Of the 28 existing PPA’s AP Genco chose to revise only 13 PPA’s of which 8 projects are in Telangana region. As the ownership of these 3 thermal and 5 hydal projects in Telangana go to Telangana government, the AP Genco has no authority to take any decision regarding them, declared ERC. Few PPA’s for which ERC has not given any formal permission, have been continuing from last 12 years, hence the argument that AP Genco has full right to cancel these approval less PPA’s, is a wrong deduction, said ERC.
ERC has also announced that there would be no applicable PPA’s for projects that night come up in the separated states. That means, the Telangana government can have their own PPA’s with regard to newly proposed Shankar Pally, Nedunooru power generation projects.
This 34 page order of AP ERC is a clear indictment of Andhra administration under CM Chandra Babu Naidu.