Power Crisis: Stalemate over Power Purchase agreement continues

While the Centre has not made any move to end the stalemate between Andhra Pradesh and Telangana over the PPA (Power Purchase Agreements) issue, the Southern Regional Load Dispatch Centre (SRLDC) has written to both state governments and will hold a meeting with chief engineers of both sides on Tuesday in Bengaluru.

 

While both sides are sticking to their stands even as APGenco is trying to push ahead with the cancellation process of the PPAs, it might take an intervention from the Centre to arrive at a solution. This, however, will lead the two states to a  power supply chaos as per higher authorities.

 

Sources in the AP government say that the cancellation process is already underway. The Telangana government, meanwhile, is following up with the Centre and SRLDC, which controls the load dispatches, and will also be getting in touch with the AP government, although, currently, it is in a wait and watch mode. The delay in intervention might cause power supply chaos, as already some impact of the affiliations are being felt.

 

The Telangana government’s stand has been the same from the beginning, that as per the provisions of the AP Reorganisation Act, the PPAs with the ongoing projects as well as projects under construction, must continue as they are.

 

“The technical point AP has been stating is that these PPAs have not been approved or ratified by the APERC. However, since  APERC has given tariff orders based on the PPAs, they are actually being followed. We filed a petition before APERC, also wrote to the Indian government that as per the law laid down in the AP Reorganisation Act, these PPAs cannot be revoked just like that. This issue was taken up by the power ministry which decided that the PPAs must continue. We are also following up with SRLDC to give instructions so that load dispatches are continued as they are,” said Telangana chief secretary Rajiv Sharma.

 

“Ultimately, all disputes have to be solved as per the AP Reorganisation Act. We will also talk to our counterparts in AP. Also, the Centre can place a CS to solve the issue,” added the top official.

Source: Deccan Chronicle