Justice Narasimha Reddy panel issues notice to KCR on power purchases

The commission is investigating alleged irregularities in the PPAs made during the BRS regime, specifically focusing on agreements related to the Bhadradri and Yadadri power projects, as well as potential irregularities in the PPA with the Chhattisgarh government.

Hyderabad: Former Chief Minister and BRS president K Chandrashekhar Rao, along with nearly 25 others, were issued notices by the Justice Narasimha Reddy commission seeking a response on alleged irregularities in the power purchase agreements (PPA) with the Chhattisgarh government made by the Telangana government during the BRS tenure.

The Commission has asked for a reply by June 15. The commission issued the notices asking the respondents to appear before it and put forward their version.

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However, in response to the notice, Chandrashekhar Rao requested an extension, seeking additional time until July 30 to provide the necessary clarifications.

The commission is investigating alleged irregularities in the PPAs made during the BRS regime, specifically focusing on agreements related to the Bhadradri and Yadadri power projects, as well as potential irregularities in the PPA with the Chhattisgarh government.

Speaking to the media on Tuesday, Justice Narasimha Reddy said the commission had identified 25 persons who are connected with the agreements related to the Bhadradri and Yadadri power projects and the PPA with the Chhattisgarh government.

Commenting on the PPA with the Chhattisgarh government, he said former Energy Department principal secretary Arvind Kumar in 2016 wrote a letter to the Telangana State Electricity Regulatory Commission, saying that if the State entered into a hasty agreement with the Chhattisgarh government and purchased electricity, the State would suffer heavy losses in the long run and if the tenders were invited, the State could get power at competitive prices. The commission however, needs to look into the facts claimed in the letter, he said.

He said power officials had claimed that they did not invite tenders with regard to the PPA with the Chhattisgarh government as the State was in need of additional power, whereas during the investigation it was found that the agreement done when the power plants were still in the construction stage.

The plant stopped supply to the State after three to four years and due to this, how much the State government had lost was being investigated, he said. On the Bhadradri power project, Justice Narasimha Reddy said due to the usage of sub-critical technology in the plant, the State had lost about Rs.1,000 crore per annum and on purchase of coal to run the plant, an additional Rs.200 to Rs.300 crore was also lost. The Yadadri plant contract was also given on a nomination basis to BHEL which had so far not started production.

“Officials are claiming that 1 MW production will start in August. Since the railway line has not been laid so far. I have my own doubts,”he said.

Earlier, the commission collected information from senior IAS officers SK Joshi and Arvind Kumar, who had earlier served as Energy Department principal secretaries, through virtual mode. On Monday, former chairman and managing director of TS Genco and Transco, D Prabhakar Rao, along with former special chief secretary Suresh Chanda, appeared before the commission.