The government has constituted a committee on the Power Purchase Agreements (PPAs) on 1 July to review, negotiate and reduce the high wind and solar power purchase prices and submit its report in 45 days.
As per G.O RT No. 63, the committee comprises Ministers Buggana Rajendranath Reddy (Finance) and Balineni Srinivasa Reddy (Energy), Advocate General Subrahmanyam Sriram, Principal Advisor to CM Ajeya Kallam, Principal Secretary (Finance) S.S. Rawat, Secretary (Energy) N. Srikant, Special Secretary to CM D. Krishna and APSPDCL former CMD Gopal Reddy as members and AP-Transco Joint Managing Director as the convener.
It was stated that the Power Distribution Companies (DISCOMS) in the State are in financial crisis because the power purchase dues amounted to a whopping ₹20,000 crore. This is due to the abnormally priced wind and solar PPAs entered in the recent years.
The government has, therefore, formed a committee to provide affordable power to consumers and pull DISCOMS out of the red.
The committee has to factor in the lowest wind and solar energy rates in the corresponding years in the country, current rates, opportunity cost for power from AP-Genco plants, existing thermal contracts and Central generating station allocations. Aim of the Committee:
The committee will provide affordable power to consumers and pull DISCOMS of the crisis. It will also factor the lowest wind and solar energy rates in the corresponding years in the country, current rates, opportunity cost for power from AP-Genco plants, existing thermal contracts and Central generating station allocations.
Previously: The Telugu Desam Party (TDP) government purchased the Wind power at ₹4.83 per unit and solar from ₹4.50 to ₹6.80 per unit and a fixed charge of ₹1.25 per unit. It spent spent ₹7 crore per Megawatt (MW) against ₹4.49 crore to ₹4.64 crore per MW of power generated in other States.
Members of the Committee:
The convener of the 8-member committee is Sri K Vijayanad, AP-Transco Joint Managing Director.
Members of the committee:
Buggana Rajendranath Reddy (Finance)
Balineni Srinivasa Reddy (Energy)
Advocate General Subrahmanyam Sriram
Principal Advisor to CM Ajeya Kallam
Principal Secretary (Finance) S.S. Rawat
Secretary (Energy) N. Srikant
Special Secretary to CM D. Krishna
APSPDCL former CMD Gopal Reddy
