PPAs were to address Telangana’s energy needs; above scope of corruption, says Jagadish Reddy

Replying to what he said a "communication" received from the Commission, he said the allegations levelled against the BRS government in respect of the PPAs as well as the construction of new power plants were politically motivated.

Hyderabad: Justifying every power purchase agreement the State had entered into during the BRS regime, former Energy Minister G Jagadish Reddy on Saturday made it categorically clear to the Justice L Narasimha Reddy Commission appointed by the Congress government to investigate into the PPAs and constriction of different power plants, that they were all aimed at meeting the growing energy needs of a new State.

Replying to what he said a “communication” received from the Commission, he said the allegations levelled against the BRS government in respect of the PPAs as well as the construction of new power plants were politically motivated and that the Commission should use its discretion in taking such allegations into cognizance. He contended that the power purchase agreements signed by the BRS government helped in bailing out the State from an impending power crisis. After the State bifurcation, Telangana was deprived of the Sileru Hydro Electric Power Station as it was conceded by the Centre to Andhra Pradesh along with seven revenue mandals of the erstwhile Khammam district. N Chandrababu Naidu, who was the then AP Chief Minister, had scuttled every effort made by the BRS regime to purchase power from private power projects in AP.

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Telangana was left with no other viable option but to get involved in the development of the Wardha-Dichpally power transmission line taken up by the Power Grid Corporation of India Limited (PGCIL) as it was intended to facilitate import of power, primarily from Chhattisgarh. The transmission line was completed ahead of schedule and was expected to significantly boost the power supply connecting the State’s major sources for power purchase, he said.

To bring Telangana out of the power crisis, the government had signed the PPA with Chhattisgarh, which wanted to sell power from Marwah power station, which was in the final stages of completion. The PPA signed with Chhattisgarh helped in purchasing power at Rs 3.90 paise per unit, which was considered to be the lowest. The PPA signed subsequently with the NTPC also helped in getting power at the lowest cost.

The State entered into several agreements with Bharat Heavy Electricals Limited (BHEL) for setting up its first supercritical thermal power plants, especially those projects which were crucial for meeting the increasing power demand and they demonstrated the State’s commitment to enhancing its power infrastructure. Agreements signed with a public sector undertakings were very much in the interest of the state and they were beyond the scope of corruption. The allegations that the such agreements had put the State to loss were baseless, he asserted, also insisting that all agencies involved in clearance of the power purchase agreements and establishment of new power plants should be made party to the probe.