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Andhra Pradesh Government scraps Power Purchase Agreements


June 19, 2014 - Hyderabad

The State Governments of Andhra Pradesh and Telangana are heading towards a collusion course with the Andhra Pradesh Electricity Regulatory Commission (APERC) withdrawing from the Power Purchase Agreements.

The Telanana Chief Minister K Chandrasekhara Rao directed his Chief Secretary Rajiv Sharma to speak to the Union Power Secretary of the situation. After a meeting, the Telangana Minister for Irrigation T Harish Rao said that 'we will not allow such thing to happen. He said that Andhra Pradesh cannot withdraw from the PPAs as it would be in force for 10 years in the AP State Reorganization Act'.

Telangana PCC president faults:

Telangana Pradesh Congress Committee chief Ponnala Lakshmiah faulted the Andhra Pradesh Government decision to scrap Power purchase agreements. He termed the Andhra Pradesh Government as unfortunate and added that the Chief Minister Chandrababu Naidu is acting in haste. He said that he is acting in against the democratic principles. He demanded Naidu to continue the PPA in tune with the bifurcation bill failing which new problems will come up.

Telangana Government threatens:

Meanwhile the Telangana government indirectly threatened to cut power supply to the Andhra Pradesh Government establishments located in Hyderabad such as the Legislative Assembly, Legislative Council, Secretariat, Ministers and MLAs' quarters.

Central writes letter to State:

Central Government has written a letter to the Andhra Pradesh Government asking it not to make any changes in the existing PPAs or allocation of power to Telangana. The Executive director of Power System Operation Corporation Ltd., said that 'AP State Load Despatch Centre is advised to continue with the existing scheduling procedure as in force since June 2, 2014, in conformation with the AP Reorganization Act 2014, until such time the clarification is obtained from the ministry of power. The matter may be expedited for avoiding operational difficulties in real-time grid operation.'

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