Telangana cabinet orders CBI probe into power purchase agreement

Telangana Cabinet orders a CBI probe into power purchase agreement, approves land value revision, clears OTS scheme for dues, and plans solar projects, while assuring procurement support to farmers hit by unseasonal rains

Hyderabad: The State Cabinet on Monday decided to hand over the Madan B. Lokur Commission report on alleged irregularities in power purchase agreements, as well as the Bhadradri and Yadadri power plants, to the Central Bureau of Investigation for a detailed probe. This is the second issue to be referred to the CBI by the Congress government after the Kaleshwaram project.

The Lokur Commission, had submitted its 114-page report to the government in October 2024. The report was examined earlier and shared with the Advocate General for legal opinion. Based on his advice, the Cabinet approved a CBI inquiry, Revenue Minister Ponguleti Srinivas Reddy said. The decision was taken as the power purchase agreements involved multiple States and certain central government organisations in execution of two power plants, he said at a press conference.

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The Cabinet also decided to revise land and registration values scientifically. The new rates would be implemented before May 26. This is the first revision since February 2022. The revised land values will apply to acquisitions for irrigation, Roads and Buildings, and other public projects. Farmers and landowners will be compensated at the enhanced rates. Industrialists applying for ownership under the HILT policy before the revision will be allowed to pay 10 per cent of the cost at existing rates. The remaining amount must be cleared within 90 days.

The Cabinet approved the transfer of Narmul Mother Dairy to the National Dairy Development Board. It also cleared a proposal to set up solar power plants on government land near substations. As part of a pilot, 19 locations have been identified across the State.

A One Time Settlement (OTS) scheme was also approved to clear tax arrears owed by different government departments to GHMC, Malkajgiri and Cyberabad municipal corporations, and HMWSSB. The total outstanding dues, including interest and penalties, stood at Rs 5,864 crore. After waiving interest and penalties under the OTS, the payable amount comes down to Rs 1,686 crore.

The Minister said the government would procure paddy and maize from farmers. He acknowledged that unseasonal rains have caused difficulties at procurement centres.